Skip to content

All posts by TGS - 99. page

China’s Vice Premier: Government Credibility Tied to Safety of High-speed Railway

On August 15, 2011, at a State Council’s kickoff on safety issues, Zhang Dejiang, China’s Vice Premier, said that safety checks on China’s high-speed railway network must be conducted to raise the government’s credibility. “An extensive safety check has become … an urgent need in order to raise government credibility and public satisfaction.” Zhang said that if major safety threats are found during the month long inspection from now to mid September, train operations and construction should be suspended immediately.

Source: The Beijing News reprinted by People’s Online, August 17, 2011
http://scitech.people.com.cn/GB/15434283.html

China’s Ministry of Agriculture: The Best Practices in the Party’s Ideological Work on Farmers

Red Flag Manuscript published a research paper from China’s Ministry of Agriculture that discussed the best practices in the Party’s ideological and political work in the countryside. The article stated that the victories that the Party achieved in the past were the result of taking resolving agricultural and farmers’ issues as the number one priority, adopting and implementing agricultural policies, and targeting the hearts of farmers in the Party’s ideological and political work, all of which won the support of the vast majority of farmers. The practices that have proved best include 1) always consider the farmers’ issues as the most important; 2) always tie the core task of the Party with the ideological work on farmers; 3) always treat the resolution of land problems as the foundation of the Party’s work on farmers’ issues; 4) implement the Party’s agricultural policies along with its ideological and political work.

Source: Red Flag Manuscript reprinted by Qiushi, August 10, 2011
http://www.qstheory.cn/hqwg/2011/201115/201108/t20110810_101111.htm

Four Uncertainties in China’s Economy

According to a commentary in Beijing Times, China should be on guard for four uncertainties in its economy. The first uncertainty is whether China can continue to rely on the investment model of the high speed rail. “Presently the Ministry of Railways is under tremendous pressure due to high debts and low passenger usage. In the event that (this type of) investment is significantly scaled back and this engine is lost, can China maintain a high growth economy?” The second uncertainty comes from mid-size to small businesses which are the life blood of China’s economy. The third uncertainty is whether inflation control is effective. It is anticipated that the inflation rate will be as high as 6.7% for July. The fourth uncertainty is the large reduction in the GDP growth rates for Beijing, Shanghai, Guangzhou and other cities, which may be a sign of a slowdown of China’s GDP.

Source: BeijingTimes, August 9, 2011
http://news.jinghua.cn/348/c/201108/09/n3428025.shtml

Money Weekly: When the U.S. Hurts, China Feels the Pain

Money Weekly published a piece stating that China must increase domestic demand by reducing taxes and fostering competition. He Wannan, a financial analyst on publicly traded companies, wrote an article titled, “Why does China feel the pain whenever the United States hurts?” The article states that, as the largest holder of U.S. debt, each of the 1.3 billion people in China has loaned $900 to the United States, the wealthiest country in the world. China has $US3 trillion in foreign exchange reserves in U.S. dollars and has nowhere to invest it. A small move would cause a market slide. “Why does China feel the pain whenever the United States hurts? Fundamentally, it is because in China’s rise, it has followed the path of an export oriented economy, with over one-third of GDP generated by demand from outside of China. … In a word, China must focus on domestic demand. Two critical factors are involved in reaching the goal: one is to reduce taxes and the other is to oppose (state) monopolies and foster competition."

Source: Money Weekly reprinted at jrj.com August 9, 2011
http://finance.jrj.com.cn/people/2011/08/09160610687375.shtml

Study Times: The Contemporary Value of Mao’s Ideology of Forming a United Front

 Li Anji, an official with the China Soong Ching Ling Foundation, wrote in Study Times that understanding Mao Zedong’s ideology on forming alliances is critical to building a harmonious society. Li addressed the issue from three perspectives: the pragmatism, the long-term vision, and the tactics of Mao’s ideology in forming alliances with non-Communist Party organizations. “Currently, the most important historical task placed in front of the Communist Party’s Central Committee and the people is to build a harmonious socialist society. To that end, the following has important theoretical and practical revelations: to sum up and learn from the rich and harmonious concepts in Mao’s united front ideology will assist us in spotting the main issue in contemporary China, coordinating the ever-widening disparity of interests of different groups, solidifying the domestic united front, building a harmonious society, creating a harmonious domestic environment for economic and social development, establishing a broad international united front, strengthening international exchange and cooperation, and creating a peaceful international environment for the rise of China.“

Source: Study Times, August 8, 2011
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2011/08/08/08/08_16.htm

State Think Tank Critical of Secretary Clinton’s Remarks on India

Xinhua reprinted a commentary from Jiefang Daily that Wang Yusheng, the Executive Director of the Centre for Strategic Studies at the China Foundation for International Studies, wrote about U.S. Secretary Clinton’s speech made during the U.S. – India Dialogue. According to Wang, Clinton “encouraged and urged India” to play a role in the east. The title of the commentary was “Hilary: You Cannot Hurt China; You Only Exposed Yourself." Wang stated that the objective of Secretary Clinton’s remarks was to instigate fights and contain China. “Although the U.S. neo-conservative idealists expected tension between China and its neighboring countries, it did not occur. This was not because of the U.S. ‘hard power’ and ‘soft power’ or its much relished ‘smart power’; rather, it was the result of China’s ‘affinity power.’” The negative behavior of the U.S. toward China “cannot hurt China and merely brings to light the dark side and the vulnerability of its international behavior.”

Source: Jiefang Daily reprinted by Xinhua, August 1, 2011
http://news.xinhuanet.com/world/2011-08/01/c_121750738.htm

China’s Defense Minister Promotes Military-Civilian Integration

In an article in Qiushi, China’s Defense Minister, Liang Guolie, a member of Chinese Communist Party’s Central Military Commission, stated that the ultimate purpose of the military-civilian integration strategy is to develop the country’s prosperity and empower the military, both being the cornerstones of the rise of China. The military-civilian integration consists of four major tasks: 1. Establish and perfect scientific research & development (R&D) of military armaments; 2. Establish and perfect a mechanism to train and retain military talent; 3. Establish and perfect information sharing by leveraging civilian information technology; and 4. Establish and perfect the national defense mobility system, including the militia and reserves.

Source: Qiushi, August 1, 2011
http://www.qstheory.cn/zywz/201108/t20110801_98732.htm

Scholar: Protect the Dollar Value of China’s Holdings of U.S Debt.

Sun Lijian, a Professor of Finance and Vice Dean of the School of Economics at Fudan University, wrote an article in Shanghai Securities News recommending that China should expand Shanghai’s offshore settlement business to control the dollar value of its holdings of U.S. debt. “When they (the United States) threatened to default, we realized how critical it is for China to … internationalize the renminbi.” Sun recommended that China leverage Shanghai as an international financial center and proactively expand the Asian dollar offshore settlement business. This would enable China to get around the bottleneck from the absence of a market mechanism for adjusting the exchange rate and the interest rate, the lack of international finance professionals, and the deficiencies in risk management. That, wrote Sun, would allow China to protect, to the maximum extent, the dollar value of its holdings of U.S. debt, and buy time for China to internationalize the renminbi.

Source: Shanghai Securities News reprinted by Qiushi, August 1, 2011
http://www.qstheory.cn/jj/jjyj/201108/t20110801_98836.htm