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All posts by TGS - 62. page

China’s Research and Development Funds Misused

On August 1, 2013, People’s Daily reprinted a report from Guangdong Yangcheng Evening News (Yangcheng Wanbao) stating that a major share of the nation’s R&D funds is used for conferences and travel. 

At a press conference, Wang Dong, Deputy Mayor of Guangzhou, reported, “Of all national scientific and technology research and development funds, only about 40 percent is truly spent on R&D. The remaining 60 percent is spent on conferences, travel, and other matters.”  

The remarks were made in response to earlier reports. Guangzhou officials in charge of R&D had been investigated due to corruption charges. Wang responded, “So many incidents have occurred in this field. It must have something to do with our system.” Wang stated that governments at all levels in China have spent large amounts of funds on R&D. As most Chinese enterprises do not conduct independent R&D, there is an urgent need for reform to assure that the R&D funds are used effectively. 

Source: Guangdong Yangcheng Evening News (Yangcheng Wanbao) reprinted by People’s Daily, August 1, 2013 http://politics.people.com.cn/n/2013/0801/c1001-22414743.html

Briefings | | |   Government/Politics

Xinhua: In Chaos China, Would be Worse Off than the Former Soviet Union

On August 1, 2013, Xinhua published a commentary stating that, if China were to fall into chaos, it would be worse off than the former Soviet Union. The commentary compared China today to the former Soviet Union on the eve of collapse. It accused Internet bloggers of “spreading rumors every day, fabricating negative social news, creating an apocalyptic scene of China’s imminent collapse, denigrating the existing socialist system, and promoting the European and American capitalist and constitutional model.” It also blamed the Internet bloggers for inciting hatred toward the government to trigger social unrest in China.

“Then let’s look at the situation after the disintegration of the Soviet Union, which went through unrest, to see if the Russian people have reached the shore of happiness with universal values.” 

“Today the Russian people have really awakened to the fact that democracy, as depicted by Europe and the United States, deceived them, only to lose everything they once had. This means that Russia has moved from a major power to a second or third class economy that plays only a small role in the world.” The commentary predicted that China would be several times worse off than Russia. The socialist system is not the best, “but it is definitely better than what Europe and the United States would impose on China. At least we now move forward in development. This is the awakening of the Chinese!” 
Source: Xinhua, August 1, 2013 
http://news.xinhuanet.com/world/2013-08/01/c_116766533.htm
Briefings | | |   Government/Politics

China Development Bank: A State-owned Financial Institution Serving the State’s Interest

On July 31, Qiushi published an article by Hu Huabang, the Communist Party Secretary and Chairman of the China Development Bank (CDB), a State-own commercial bank, on the success of CDB as a State-owned financial institution serving the interest of the State. 

CDB provides medium to long-term financing in priority sectors and projects to implement China’s national economic strategy. Eighty percent of its financing is in the sectors of energy, agriculture, telecommunications, and public infrastructure and 60 percent is in midwest and northeastern traditional industrial bases. Further, it has financed major overseas energy projects in foreign countries, including Russia, Pakistan, and Turkey. 
According to Hu, currently in China, CDB is the largest bank for medium and long-term financing, the largest bond bank, the largest foreign investment and financing cooperative bank, and the largest development financial institution. 
Source: Qiushi, July 31, 2013 
http://www.qstheory.cn/jj/jcbw/201307/t20130731_254614.htm
Briefings | | |   Economy/Resources

Xinhua: Loyalty to the Central Government is the Key to Stability

Xinhua published a commentary shortly after its report that Bo Xilai, the former Party Chief of the Chongqing Municipality, was charged with bribery, corruption, and abuse of power. The commentary emphasized loyalty to the central government.

“Safeguarding a unified central government and its decrees and following the central leadership … remain the steadfast mainstream of our times.” 
“China’s historical experience has repeatedly shown that only safeguarding the central authority can ensure the long-term stability of our country. The central government makes policies and changes personnel from the perspective of the whole country. Its decisions are based on the foundation of the national interest. Policies and personnel changes may touch local interests, but minor matters need to be subordinate to major ones in order for the reform, development, and stability of the country to benefit.” 
[Editor’s note: Boxun reported that Bo Xilai and Zhou Yongkang had planned to stop Xi Jinping’s succession and replace him (IBT February 2012).]
 

Source: Xinhua, July 25, 2013 
http://news.xinhuanet.com/comments/2013-07/25/c_116681147.htm

Briefings | | |   Government/Politics

Xinhua: Bo Xilai Charged with Bribery, Corruption, and Abuse of Power

Xinhua reported that on July 25, the Jinan Municipal People’s Procuratorate, Shandong Province, filed charges with the Jinan Intermediate People’s Court against Bo Xilai for bribery, corruption, and abuse of power. 

“During the investigation, in accordance with the law, the prosecutors informed defendant Bo Xilai of his legal rights, questioned the defendant, and listened to the views of defense counsel that he appointed. The Jinan Municipal People’s Procuratorate indictment charged that the defendant Bo Xilai, as a civil servant, took advantage of his position, sought profit for others and illegally accepted extremely huge amounts of money and property from others; that he embezzled huge amounts of public funds; and that his abuse of power resulted in major losses to the State and the people. The circumstances are especially serious. According to the law he should be held and criminally prosecuted for taking bribes, embezzlement and abuse of criminal prosecution, and should be punished accordingly.” Bo Xilai, the former Communist Party Chief of Chongqing Municipality, Sichuan Province, has been in detention since April 2012. 

Source: Xinhua, July 25, 2013 
http://news.xinhuanet.com/legal/2013-07/25/c_116680877.htm

Briefings | | |   Government/Politics

State Official: Economy Continues to Decelerate; Major Adjustment Probable

Dr. Li Zuojun, Deputy Director of the Resources and Environment Policy Institute at China’s State Council’s Development Research Center, predicted that, in the second half, the Chinese economy will continue to decelerate and that a major adjustment is possible. 

“At the beginning of the year, my take on the 2013 economic growth situation was that the economic growth rate might first increase and then decrease and that, while we might see an upward trend in the first half, in the second half of the year, the economy might experience some downward pressure. The reality is that, in the first quarter, GDP only grew 7.7 percent, lower than last year’s fourth quarter growth. Now it seems the second quarter may be even lower than the first quarter, possibly two percentage points lower. This year the economy will likely be on a continuous downward trend, unless relatively strong stimulus measures are taken to reverse this trend. Nevertheless, right now it appears that the central government’s policy is to tolerate some decline in economic growth in order to pursue efficient and cost-effective growth while preventing systemic regional financial risks. As there is a low probability of strong stimulus measures, [I] do not rule out a major economic adjustment in the third and four quarters.” 

Source: Caijing.com, July 23, 2013 
http://blog.caijing.com.cn/expert_article-151696-56649.shtml

Briefings | | |   Economy/Resources

Beijing University Survey: Income Inequality Is Serious

Beijing University released its China Family Panel Studies (CFPS), which shows that income inequality is increasing, with the top five percent’s income being 234 times that of the lowest five percent. The Studies based its report on statistics for the 2010 to 2012 period. 

The CFPS shows that the average per capital income for a household is 13,033 yuan, with the lowest five percent at 1,000 yuan, the lowest five to 10 percent at 2,000 yuan and the top five percent at 34,300 yuan. 
As for the total household income, the income of the bottom five percent of the lowest-income households accounts for 0.1 percent of the income of all households surveyed; the lowest five to 10 percent accounts for 0.5 percent, and the top five percent of highest-income households accounts for 23.4%, which is 234 times that of the bottom five percent. 
Wages remain the main source of income.  

Source: Nanfang Dushi Bao (Southern Metropolis Daily), July 18, 2013. 
http://epaper.oeeee.com/A/html/2013-07/18/content_1897841.htm

Briefings | | |   Social Stability

Beijing News: 100 Million Suffer from Mental Illness

On July 11, 2013, Beijing News reported that, according to statistics from China’s Center for Disease Control and Prevention, there are over 100 million people who suffer from various forms of mental illnesses. Over 16 million of them have severe mental illness, meaning one in every 100 has severe mental illness. For treatment, two percent of the 16 million take medicine, while less than 10 percent receive in-patient treatment. Reports indicate that about 10 percent show an inclination to commit violence. It is common for family members to chain these people in a cage at home. In Hebei Province alone, the number of people “living in a cage” has reached 100,000. 

“There is ‘little’ assistance available for this group. China has only 20,500 registered psychiatrists and 30,000 nurses. … They face tremendous work and psychological pressure. … The medical infrastructure that health care relies on also seems ‘thin.’ Even in Beijing with its top medical facilities, a person has to wait up to six months for a bed in Hui Long Guan Hospital, which specializes in psychiatric treatment.” 
Source: Beijing News, July 11, 2013 
http://www.bjnews.com.cn/feature/2013/07/11/272800.html
Briefings | | |   Social Stability