TGS – Page 63 – Chinascope

Xinhua: GSK Is not Alone

On July 14, 2013, Xinhua published an article commenting on the Chinese bribery investigation into the British pharmaceutical company, GlaxoSmithKline (GSK), stating that GSK is just one of many foreign firms that have been involved in bribery in China. “In recent years, multinational companies have caused China to become one of the hardest hit in the commission of bribery.”

According to Xinhua, in December 2012, Eli Lilly settled for $30 million when the U.S. Securities and Exchange Commission charged it with bribing foreign government officials to expand its market in Russia, Brazil, China, and Poland. In August 2012, Pfizer paid $60 million in fines for offering bribes to government medical staff in eight countries including China. Toward the end of 2008, Siemens was fined $1.3 billion for its corrupt practices involving five Chinese government-owned hospitals. It had paid tens of millions of dollars in bribes to physicians and lab personnel, ultimately resulting in huge orders for medical equipment.

“From the 1990s to the present, well-known multinational companies, including Morgan Stanley, IBM, Lucent, Wal-Mart, Diagnostic Products Corporation, Avery Dennison, and many others have been charged with bribery in China.”

Source: Xinhua, July 14, 2013

http://news.xinhuanet.com/politics/2013-07/14/c_125005890.htm

Briefings | | July 18, 2013 | Economy/Resources

Red Flag Manuscript: Solidify China through Propaganda

Xinhua reprinted a Red Manuscripts’ interview of Zhan Dexiong, a Xinhua researcher, on how to use propaganda to solidify China.

Zhan stated, “Revolution depends on two rods – the gun and the pen; these are the heirlooms of the Chinese Communist Party. Looking at the situation at home and abroad, although the political, economic, cultural, and public opinion means have undergone tremendous changes, reality tells us not only that we cannot throw these two rods away; we must greatly enhance them. It is not because of people’s subjective intent, but because the reality of the situation forces us to do so.”

Zhan also stated that the current situation is unfolding in China’s favor because the United States and Europe have been struggling with their respective political or economic crises and are helplessly watching China’s rise. "You could say that we now in a better position to push propaganda and ideological work toward a new height."

Zhan recommended that China get out of the box of the Western hegemony of discourse and build its own discourse community. He also suggested, “Through propaganda, we should make clear to the cadres and the masses what are the advantages of our democracy and the Achilles heel of the West.

Source: Red Flag Mnauscripts reprinted by Xinhua, July 11, 2013 http://news.xinhuanet.com/politics/2013-07/11/c_124994085.htm

Briefings | | July 12, 2013 | Government/Politics

Qiushi: Former Soviet Union Stopped Controlling the Armed Forces

Qiushi published a commentary on how the former Communist Party of the Soviet Union (CPSU) abandoned its role of leadership of its armed forces and the Soviet Union ended up disintegrating.

“At that time, the Soviet Communist Party discontinued its leadership of the armed forces. At the critical juncture, the armed forces simply stood by without taking any action. At the last moment, the Soviet Union collapsed instantly and the CPSU fell apart. What a profound lesson!”

According to the commentary, first, the former CPSU discarded Lenin’s principles and abolished the CPSU leadership of the military so that, in the end, the military did not follow the Party. Second, Gorbachev’s “reform and the new thinking” collapsed the ideological foundation of the CPSU’s leadership of the military. Consequently, the military did not have a unified resolve or will at the most critical moment. Lastly, the CPSU’s unrealistic military reform undermined military discipline and order and led to chaos among the military.

Source: Qiushi, July 10, 2013
http://www.qstheory.cn/hqwg/2013/201313/201307/t20130710_247739.htm

Briefings | | July 12, 2013 | Defense/Military

Scholar: Challenges to China’s Economic and Social Transformation

On July 8, 2013, Chi Fulin, President of the China Institute for Reform and Development in Hainan Province wrote a commentary for China Business News entitled, “The Challenges and Trends in China’s Economic and Social Transformation.”

Chi stated that it was his understanding that the new Chinese government has established the goal of doubling China’s per capita GDP and per capita income by 2020. “Currently, both the international environment and the China’s domestic economic and social transformation are right in the middle of complicated, profound changes. Three key elements will determine whether or not China can achieve this goal. The first is whether China can objectively handle the challenges it faces; second is whether China can seize the opportunities available to it; and third, the key is whether China is able to speed up transformation and reform.”

Chi identified three challenges to social transformation: (1) the gap between rich and poor is quite conspicuous; (2) the social structure is irrational. So far, according to the National Bureau of Statistics, China’s middle-income groups account for about 23 percent [of the population]; and (3) as a result, social conflicts and social risks continue to increase.”

Source: China Business News reprinted by Finance (Jingrongjie), July 8, 2013
http://opinion.jrj.com.cn/2013/07/08072415493871.shtml

Briefings | | July 11, 2013 | Economy/Resources

Senior PLA Official: Promoting Military Reform with Chinese Characteristics

Liu Yazhou, the political commissar of the National Defense University of the People’s Liberation Army, published an article in the recent issue of Qiushi about promoting and deepening military reform with Chinese characteristics.

Liu wrote that the PLA faces two “incompatibles.” First, the existing level of modernization is incompatible with the requirement to win local informationization wars. Second, military capabilities are incompatible with fulfilling our historic mission in the new century. “The only way to solve these two "incompatibles" is through a vigorous and deep reform. Otherwise, we will once again be eliminated by the tide of military development.”

Such military reform must be included in the framework of national reform so that “the military reform will synchronize with political and economic reforms and reforms in other fields and will be in harmony with social reforms. On the other hand, it is essential for the military reform and for overall national development that, during the historic stage of overall changes in society, military reform does not exceed what social reform can tolerate.”

Source: Qiushi reprinted at sina.com, July 1, 2013
http://news.sina.com.cn/c/2013-07-01/155827545695.shtml

Briefings | | July 5, 2013 | Defense/Military

National Business Daily: Rail Construction May Slow Down

On July 2, 2013, National Business Daily published a commentary on the impact that banks’ tightening of credit will have on rail expansion.

China is transitioning from a country on tires to one on the rails. High-speed railways, urban subways, and light rails are becoming the primary mode of transportation. The total rail length will reach 6,000 kilometers by 2020, requiring an investment of 3 to 4 trillion yuan.

According to the commentary, real estate appreciation has become the most important element in funding rail transit construction. The rail transit companies that the local authorities control first acquire some land. Then they start to develop real estate, followed by construction of a rail transit system and other infrastructure in the area. This leads to anticipated appreciation of the land they own. The increase in the real estate market allows the rail transit companies to make the money needed to cover the cost of all the construction and to repay the debts they owe for rail transit.

The commentary concluded that, as banks tighten credit by evaluating the financials of prospective rail transit projects, a few planned rail transit projects will not make it.

Source: National Business Daily, July 2, 2013
http://ntt.nbd.com.cn/articles/2013-07-02/754446.html

Briefings | | July 5, 2013 | Economy/Resources

State Media: The Moral Decline of the United States

One of China’s state media, the International Herald Leader, published a commentary stating that morality in the United States has been declining, particularly since September 11, 2001, although there are still “righteous people” stepping forward.

“The United States asks others to abide by international law, while the U.S. itself has repeatedly violated international law. Recently, however, a series of events occurred, indicating that there are righteous people in the United States who come forward.”

The commentary cited Bradley Manning and Edward Snowden. “The fact that Manning disclosed how the U.S. has violated a large number of U.S. laws and the laws of other countries undoubtedly demonstrates that the U.S. system is in a serious moral decline. Likewise, in his daily work, former CIA [sic] employee Snowden also became extremely unhappy with the U.S. government’s abuse of power, excessive monitoring of its own citizens, and vigorous violations of the cyber security of other countries. He has been exposing such acts of the U.S. government so that other countries not only understand how fragile their own cyber network is, but also understand how the U.S. government plays the thief who cries ‘stop thief,’ and to what extent its morality has degenerated.”

Source: International Herald Leader, June 24, 2013
http://ihl.cankaoxiaoxi.com/2013/0624/228922.shtml

Briefings | | June 28, 2013 | US-China Relations

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