Xia Bin, Director-General, Financial Research Institute, Development Research Center of the State Council (DRC), People’s Republic of China, wrote that the two key issues affecting urbanization in China are welfare benefits to farmers and urban planning.
All posts by TGS - 56. page
General Luo Yuan on China’s New State Security Committee
Major General Luo Yuan of the People’s Liberation Army wrote an article in which he stated that China’s New State Security Committee is to handle long term security matters from a strategic perspective.
Local Government Debts: Backdoor Loans
Xinhua reprinted a China Business News article reporting on backdoors loans made to local governments. The article stated that such loans are rampant and lack proper accounting.
According to China Business News, when, due to their investment and financing platforms and the local governments existing debts, they find it difficult to obtain additional loans, some of them ask large companies that have international backgrounds to take out bank loans on their behalf. These large companies then use local governments’ land as collateral for the bank loans.
Because the loans are obtained to satisfy the needs of local governments, the funds are then remitted to the local governments, thus becoming debts of the local governments. However, as a result of special accounting treatment, the local governments do not record the loans on the books as actual loans, but as current accounts with these large companies.
First, not all the fund transfers are recorded in the books. Second, since the local governments’ land is used as collateral for the loans, some local governments may call the loans “Assets” on their books. Third, because the large companies have already recorded the loans as liabilities, the local governments use that as a reason not to report the loans as their own liabilities. Fourth, some large companies have gone so far as to create a separate bank account for these loans. The money is set aside for the local governments to use so they can withdraw funds and deposit the payments for the loans.
Source: China Business News reprinted by Xinhua, November 19, 2013
Economist: Another 20 Years Needed to Absorb China’s Real Estate Surplus
According to Jiangnan Times, a publication under People’s Daily, Professor Li Daokui from Qinghua University, one of the most influential economists in China, predicted that it will take another 20 years to absorb China’s existing real estate surplus.
Qiushi: Market to Play Vital Role in Resource Allocation
On November 20, Qiushi published an article explaining the goals of economic reform as proposed during the Third Session of the 18th Congress of the Communist Party.
More Party Officials with Ties to Jiang Zemin under Investigation
On November 14, Xinhua reprinted a China News Weekly report that in less than a year since Xi Jinping came to power in the 18th Congress of the Chinese Communist Party, 11 high ranking provincial officials and department heads have been put under investigation on corruption charges. The number doubled the average of 5.8 officials per year in the past five years. From 2008 through 2012, there were four, eight, six, seven, and four officials, respectively, at provincial or department level who were investigated.
Asia News, "Nanjing mayor arrested on corruption charges,"
http://www.asianews.it/news-en/China,-Nanjing-mayor-arrested-on-corruption-charges-29299.html
CRN: State Security Committee Reflects Chinese Political System Reform
The Third Plenary session of the 18th Congress of the Chinese Communist Party just ended on November 12. China Review News published a commentary on the new State Security Committee that the Congrss established.
PLA Editorial: Resolutely Resist the “Nationalization of the Military”
On November 10, 2013, during the third session of the 18th Congress of the Chinese Communist Party, People’s Liberation Army (PLA) Daily published an editorial titled, “Always Adhere to the Party’s Absolute Leadership over the Military.”