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Qiushi: Have a Clear Understanding of Western Cultural Exports

Qiushi recently published a commentary in which it called for having a clear understanding of how the West uses its cultural exports to change the countries it targets. 

It observed, “Take the United States for example. It manipulates its culture to influence the cultural values of the people in other countries, especially the decision-making elite, so that these countries adopt systems and development strategies in line with U.S. interests.” Specifically, such cultural exports have three characteristics: First, the U.S. positions itself as the advocate of freedom and democracy against autocracy. Once accepted, the West, as led by the U.S., is viewed as the defender of human rights and the symbol of freedom. Countries with different political systems are labeled as totalitarian or autocratic. Thus, the United States easily overcomes the [hurdle of] national sovereignty. The pursuit of its interests then becomes an effort to maintain fairness and justice. Second, [the United States] influences the elite in developing countries to adopt the U.S. political and economic systems [and to weaken their control over the government of their countries]. Once the elite are brainwashed into achieving American style prosperity by following the U.S. systems, these counties’ independence are severely weakened. Unknowingly, they allow the United States to lead them. Third, if the United States encounters strong resistance, it launches a "color revolution" using "freedom and democracy" as weapons to subvert the existing government and achieve its own geopolitical interests. 
Source: Qiushi, April 16, 2014 
http://www.qstheory.cn/wz/shp/201404/t20140416_340630.htm

On Ukraine: China Should Lean Towards Russia

China.com.cn, a key State news website under China’s State Council Information Office and the National Internet Information Office, published a commentary stating that as the crisis in Ukraine unfolds, China should gradually lean towards Russian. 

According to the commentary, there are two reasons for China to be more active on the issue of Ukraine. First, China has been objective and impartial without taking sides, while showing moral sympathy toward Russia. This approach has won respect from the parties and expanded China’s influence on the issue of Ukraine. However, as the situation develops, it would be impossible to be “absolutely independent” or even “relatively independent.” Second, while the U.S. focuses on Ukraine, Obama does not forget China. The U.S. has been beating the drum on the issues of the East China Sea and the South China Sea. It equates Crimea with Taiwan and its recent remarks clearly show that whatever happens in Europe will not affect the U.S. adjustment in its Asian Pacific strategy, which deems China as its top adversary. 
“So should China make a corresponding policy move to lean towards Russia on the issue of Ukraine as retaliation against the United States?” The commentary predicted that during Putin’s visit to China in May, the two strategic partners will issue surprising announcements concerning further cooperation between the two, a natural response by China and Russia to the U.S. intrusion and containment. 
Source: China.com.cn, April 16, 2014 
http://news.china.com.cn/world/2014-04/16/content_32107518.htm

Study Times: State-owned Enterprises to Change Their Political Advantage to a Competitive Advantage

Study Times published a commentary on how State-owned enterprises (SOEs) can more effectively change their political advantage into a competitive advantage. 

According to the article, the central role of the Communist Party should reflect the leadership’s role in SOEs. “From an economic perspective, the SOEs are an important economic pillar of the country. From a political perspective, the Party’s organization in SOEs is an important foundation of the ruling Party organization.” The Party organizations in the SOEs fully play the central political role showing the Party’s capabilities in leading economic development, which is also mandated by the need to solidify the Party’s rule of the country. 
The article further stated that SOEs bear different responsibilities from other types of businesses. They bear both an economic responsibility and a political and social responsibility. “SOEs should remain highly consistent with the Party’s Central Committee, consciously instill the Party’s line, principles and policies into the action of cadres and workers, and transform these Party lines, principles and policies into products, economic efficiency, and the enterprise’s development practices.” 
Source: Study Times, April 14, 2014 
http://www.studytimes.cn/shtml/xxsb/20140414/4519.shtml

Financial Trouble Looming as Demand for Coal Continues to Decline

According to Securities Daily, as a result of China’s economic downturn and the severe drop in the demand for coal, coal prices have continued to fall. This factor, along with an increase in coal imports, has resulted in a decline in the price of domestic coal and a serious excessive capacity. In Erdos, Inner Mongolia which is highly dependent on the development of coal resources, the daily sales of coal from some coal mines is less than one-tenth of the normal amount of sales. The slump in the coal industry is seriously affecting the revenue from real estate and hotels, as well as tax revenue. The tax revenue from one coal district declined from 200 million yuan per month to 20 million per month. 

The demand for coal has fallen drastically. With a few exceptions for several major steel mills, all the steel mills in Tangshang, Hebei Province are shutting down their production. All cement plants within 100 miles of Beijing are also closing down. 

Source: Securities Daily, April 10, 2014 
http://zqrb.ccstock.cn/html/2014-04/10/content_412087.htm

Sporting Goods Store Closures Continue with High Inventories

During the economic downturn in China, stores for sporting goods with brand names faced their second round of closures in two years. In 2013, six well-known brand name sporting goods closed over 3,000 of their stores; inventories reached 3.1 billion yuan in 2013. 

In 2013, Lining, Anta, Peak, 361 Degrees, China Dongxiang, and Xtep closed over 3,000 stores. 361 Degrees was hit the hardest with 783 closures. Xtep shut down 150 stores and was the least affected brand. Back in 2012, during the first round of closures, Lining and Peak alone closed over 1,000 stores.
The inventory for all six brands remained high, hitting 3.1 billion yuan in 2013: Lining (942 million), Anta (689 million), Peak (366 million), 361 Degrees (409 million), China Dongxiang (183 million) and Xtep (537 million). 
Sources: 
Sina.com, April 8, 2014 
http://finance.sina.com.cn/stock/hkstock/marketalerts/20140408/145518734884.shtml 
Tencent, April 8, 2014 
 http://finance.qq.com/a/20140408/014472.htm

Qiushi: China’s Socialism and Its Global significance

Qiushi published an article on the rise of China and its significance for the world. The article stated that China has promised that it will never seek hegemony or compete with the West for the “center.” In the 20th century, the West failed to dominate the world with the Western model. The West cannot do it in the 21st century either. China has proven this point with its own development. "The success of China’s way is the success of socialism. …  The rise of China shows that world socialism has a strong vitality and there is hope for its revival. … Therefore, we are engaged in socialism rather than anything else. This should be very clear. We should be righteous and cannot avoid this point. … As long as a socialist China exists, there is hope that world socialism will revive.” 

Source: Qiushi, April 4, 2014 
http://www.qstheory.cn/gj/zgwj/201404/t20140402_336604.htm

People’s Daily: Street Politics is not Democracy

People’s Daily published a commentary on “street politics” or “color revolutions,” citing interviews with three Chinese scholars of international political science.  

According to the article, Western media tend to characterize street protests aimed to overthrow the government as resulting from people’s great efforts for democracy, while they dub other street events as "anarchist riots." Contrary to democracy, countries with street protests for “democracy” suffer from chaos and violence. This is because of the major forces that promote “street politics” from behind the scene. The influence of Western forces is behind the scene in many of the countries where they take place. Repeated changes of governments bear a close relationship to whether or not the West likes them. All countries can explore their own path, but it must be done according to the laws of that country. 

Source: People’s Daily reprinted by Xinhua, April 3, 2014 
http://news.xinhuanet.com/2014-04/03/c_126349005.htm

Beijing Business Today: What is the Biggest Problem for the Chinese Economy?

Beijing Business Today published an interview of Professor Huang Guoxiong of China People’s University on the Chinese economy. In Huang’s opinion, “The high growth rate with low efficiency is the biggest problem currently facing the Chinese economy. The development of the services industry is the key to expanding domestic demand.”

Huang stated that, “at present, the key issue of China’s economy is not the growth rate of seven percent or eight percent. The biggest problem is a high growth rate and low efficiency, with the output having value, but revenue missing.” Production, according to indices such as GDP growth, employment, and capacity, can no longer meet the current development, and will exacerbate overcapacity. Small to mid-sized businesses can adjust by producing according to orders received. Large, particularly State-run or centrally run, enterprises are still producing according to indices on capacity, GDP growth, and employment. 
Source: Beijing Business Today reprinted by Xinhua, March 31, 2014 
http://news.xinhuanet.com/fortune/2014-03/31/c_126334826.htm