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Party Officials Undergo Training to Improve Governance Skills

The China Executive Leadership Academy Pudong (CELAP) is a Shanghai-based national institution funded by the central government. Since its establishment in 2005, CELAP has conducted trainings in over 1,400 workshops and classes for close to 70,000 Party officials. At simulated press conferences or TV interviews, Party officials are asked direct questions such as “What do you think about the organ transplant situation in China?” “What are the pros and cons of planned parenthood?” or “Have Muslims in Ningxia ever been forced to eat during Ramadan?” The simulations are recorded so that teachers and students can play back the videos and critique the simulations.

Source: Xinhua, October 4, 2012
http://news.xinhuanet.com/politics/2012-10/04/c_113278213.htm

Briefings | | |   Government/Politics

The Role of the State-Owned Enterprises in China’s Economy

Of the top 500 companies in China, 316 are State-Owned Enterprises (SOEs). They account for 82.82 percent of the total revenue, 90.40% of the total assets, and 81.88% of the total profit of these 500 companies. The top 10 most profitable companies are all SOEs, including three oil companies and five banks.

As of 2007, there were 112,000 SOEs in China, of which 118 were central government owned while the rest were local governments owned.

Until 1994, SOEs had to turn over all their profits to the state’s coffers. From 1994 to 2007, SOEs kept their profits and instead, were required to pay taxes. In 2007, SOEs resumed turning over part of their profits. Depending on different industries, the rates varied from 0 percent, 3 year deferral, to 5 percent and 10 percent. Beginning in 2010, the rates changed to 0 percent, 5 percent, 10 percent, and 15 percent.

The 2011 statistics show that the central government owned SOEs turned over 82.3 billion yuan to the state, accounting for 7.4 percent of their total profits. In 2011 the net profits of these central government owned SOEs went up by 9.7 percent, while the profits they turned over to the State’s coffers increased by 8.7 percent. No explanation was given for the difference in the published official statistics.

(Editor’s note: Although the above information was released at cnpolitics.org back in April, we believe our readers may find these statistics thought-provoking.)

Source: cnpolitics.org, April 12, 2012
http://cnpolitics.org/2012/04/state-owned-enterprise/

Briefings | | |   Economy/Resources

Bo Xilai Implicated in Heywood’s Murder

Xinhua reported on the two day trial of former police chief Wang Lijun at the Chengdu Intermediate Court. It took place on September 17 and 18, 2012. “The Public Procurator produced relevant evidence. Two lawyers that Wang appointed presented his defense. The court announced that the judgment will be announced at a later date.”

“The testimonies of witnesses show that on January 28, 2012, when Wang reported to the then official in charge at the Chongqing Party Committee that Bo Gu Kalai might possibly be a major suspect in the November 15, 2011, (Heywood murder) case, Wang was angrily rebuked and slapped in the face.” Xinhua did not name Bo Xilai.

“On February 6, Wang canceled his scheduled official duties saying he had conflicts due to other engagements. At 14:31, Wang entered the Consular General’s office of the United States in Chengdu without authorization.”

“The indictment of the Public Procurator shows that Wang had a brief conversation with consular officials about environmental protection, education, and other matters. Wang then requested the United States to provide asylum and wrote an application for political asylum saying that he had received a threat to his personal safety as a result of investigating a case.”

Source: Xinhua reprinted by People’s Daily, September 20, 2012
http://leaders.people.com.cn/n/2012/0920/c58278-19056593.html

Briefings | | |   Government/Politics

China’s Gini Coefficient Reached 0.438 in 2010

Last Friday, September 14, 2012, the International Institute for Urban Development released the “Blue Book on China’s Social Management.” According to the Blue Book, the income disparity between the rich and poor in China continues to widen. China’s Gini coefficient hit 0.438, which is above the 0.4 United Nations warning level. (The UN usually draws the line for alarm at 0.4. Above that number indicates a high potential for social instability.) The figure went from 0.275 in the 1980s to 0.438 at the end of 2010 and will likely rise further.

The Blue Book cited statistics showing that urban residents’ income is three times that of rural residents. Within the same industry, the highest salary is 15 times that of the lowest salary. The income of senior management at companies whose stock is listed on stock exchanges is 18 times that of frontline employees. The salary of senior management at state-owned enterprises is 128 times that of the average salary of people in society. In 2007, the top 10 percent of the population received incomes that were 23 times those of the lowest 10 percent, an increase from the 7.3 times that was reported in 1988.

(Editor’s note: Radio Free Asia reported in January 2012 that the National Bureau of Statistics stated China’s Gini Coefficient for the year 2010 was “a little higher than it was for the year 2000.”)

Sources: Beijing News reprinted at sina.com, September 15, 2012
http://news.sina.com.cn/c/2012-09-15/021925177383.shtml
RFA, January 9, 2012
http://chinascope.org/main/content/view/4218/109/

Briefings | | |   Social Stability

Blue Book on the Priority of China’s Reforms

According to the “Blue Book on China’s Social Management,” which the International Institute for Urban Development released on Friday, September 14, 2012, the priority of China’s reform should be to develop five elements that are missing in Chinese society.

First, to develop the missing middle class. “The direction of social and even political reform” should be to reduce the gap between the rich and poor. 

Second, to develop the non-government sector of society. Currently without a sector of society that is outside of the government, every reform and innovation has resulted in the expansion of government agencies, which in turn has led to growth in the power of the government. Thus there is no buffer against social unrest.

Third, to develop mechanisms that are missing in the system. Mismanagement is rooted in a lack of appropriate mechanisms, including an effective mechanism that allows people to seek relief from government abuse.

Fourth, to develop the faith that is missing in society. What is prevalent is that people have lost their values, have low or little morality, and lack self-discipline. “When one does not believe in the government, law, faith and moral values, the only thing left in his spiritual pillar is violence. This is the primary root cause of the frequent violence in the current society.”

Fifth, to develop the missing authority. The traditional governance structure is disintegrating and the new one has yet to be established. One innovation needed in social management is to push the government from being a “development-oriented government” to a “service-oriented government.”

Source: China News Service reprinted by People’s Daily, September 14, 2012 
http://politics.people.com.cn/n/2012/0914/c70731-19013702.html

Briefings | | |   Government/Politics

People’s Daily: China Must Use a Firm Hand in Dealing with Japan

People’s Daily (overseas edition) published an article titled, "China Must Use a Firm Hand in Dealing with Japan." The article was a commentary on Japan’s purchase of the Diaoyu (Senkaku) Islands in order to nationalize the islands. It said that by doing so, Japan made two fatal mistakes: The first was misjudging the determination and resolve of China to safeguard its sovereignty and territory. “(China will not maintain peace) at the cost of losing its sovereignty and territory. On this issue, we will not give in even an inch.” The second was assuming that the United States will sacrifice its own interests just to benefit Japan. “Japan believes that it is an important foothold for the U.S. to return to Asia and has the Treaty of Mutual Cooperation and Security between the United States and Japan in its hand as an imperial sword. It is attempting to kidnap the United States on the issue of the Diaoyu (Senkaku) Islands.”

The commentary concluded, “The dispute about sovereignty over the Diaoyu (Senkaku) Islands is a long-term contest of national will, and cannot be resolved overnight. However, if we cannot smash Japan now, the East Asian region will suffer very serious consequences.”

Source: People’s Daily (overseas edition) reprinted by Xinhua, September 12, 2012
http://news.xinhuanet.com/comments/2012-09/12/c_113045028.htm

Briefings | | |   Geo-Strategic Trend

Top Ten Challenges the Communist Party Faces

The State’s Xinhua Wenzhai published an article that discussed the internal and external challenges that the Communist Party faces as the ruling party in China. The top 10 challenges are in the following areas: wavering on the basic Party line; diluting the party’s ideology; an incomplete democratic system within the Party; an excessive concentration of power; slackness and a lack of will; complacency and incompetence; deviating from the Party’s mission and rampant bureaucracy; ignoring social justice and shaking the foundation of the Party’s governance; corruption and abuse; the formation of vested interest groups within the Party; and Westernization and ignoring the Western hostile forces efforts.

Source: Xinhua Wenzhai, reprinted at People’s Daily, August 30, 2012
http://theory.people.com.cn/n/2012/0830/c40531-18872226.html

Briefings | | |   Government/Politics

Senior Party Official Re-appeared after 10 Days of Absence

People’s Daily reported that, on September 12, 2012, He Guoxiang, a Member of the Chinese Communist Party Politburo Standing Committee and Secretary of the Central Commission for Discipline Inspection, visited four media companies. While there, he made remarks, emphasizing the need to study and implement Hu Jintao’s speech made earlier at a forum attended by provincial level Party officials. He also called for further strengthening and improvement of the anti-corruption campaign and training with the goal of creating a favorable environment for the opening of the 18th National Congress of the Communist Party.

[Editor’s note: This was the first time in 10 days that He Guoxiang made a public appearance. Since Xi Jinping had not been seen in public since September 1, one of many rumors was that the two had been injured in an automobile accident.]

Source: People’s Daily, September 13, 2012
http://paper.people.com.cn/rmrb/html/2012-09/13/nw.D110000renmrb_20120913_9-01.htm?div=-1

Briefings | | |   Government/Politics