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Briefings - 1152. page

China Loosening Controls over Domestic Enterprises’ Overseas Purchases

Nanfang Daily reported that China has made policy changes to smooth the process for domestic enterprises to buy properties overseas. There are three check points for such purchases: National Development and Reform Commission (NDRC) – checks on whether the investment is in line with national interests; Ministry of Commerce – checks on trade balance, anti-trust, WTO suit, etc; and State Administration of Foreign Exchange – approves use of foreign currencies. The Ministry of Commerce has relaxed their control.

In 2009, the State Administration of Foreign Exchange published “Foreign Currency Management Regulations on Domestic Enterprises’ Overseas Investments (Draft of Soliciting Opinions),” which changed the funds source verification process from approving before the investment to recording after the investment.

The Ministry of Commerce published “Measures for Overseas Investment Management” in March. The regulations have the following changes: 1. Ministry of Commerce will only review and approve a limited number of large overseas investments. 2. The process is simplified so that most companies only need to submit a form and receive an investment certificate in three working days. 3. The financial viability and feasibility of the investment is left to the company to decide.

Source: Nanfang Daily, June 2, 2009
http://www.nanfangdaily.com.cn/epaper/nfrb/content/20090602/ArticelB03002FM.htm

Briefings | | |   Economy/Resources

China News: Calling for Chinese Oil Futures for the Power of Setting International Oil Price

China News, a state owned and internationally oriented Chinese news agency, recently reported on the idea of having Chinese oil futures. The Chairman of the China Securities Regulatory Commission and the Deputy Mayor of Shanghai delivered speeches that indicated the State Council intended to introduce crude oil, gasoline, diesel and asphalt futures at the Shanghai Futures Exchange. The Exchange has been pushing the oil futures for quite some time and the system is ready. However, the Chinese oil industry is highly centralized and the related oil companies are not willing to give up the pricing monopoly. Another major barrier is foreign exchange control, which prevents international players from participating in the commodity trade.

Source: China News, June 2, 2009.
http://www.chinanews.com.cn/cj/cj-gncj/news/2009/06-04/1719401.shtml

Briefings | | |   Economy/Resources

Qiu Shi: Globalization, Financial Crisis and International Cooperation

Qiu Shi, a magazine by CCP Central Committee, published an article on global economies by Professor Zhang Boli, a member of the Administrative Council of the CCP Central Party School. The article suggested that the solution to the global financial crisis is international cooperation. Aspects of the suggested cooperation include: establishing a healthy global economic and financial system; restraining protectionism; enhancing financial supervision and control; reforming the international currency system; and strengthening regional economic cooperation.

Source: Qiu Shi, June 1, 2009.
http://www.qsjournal.com.cn/qs/20090601/GB/qs%5E504%5E0%5E26.htm

Briefings | | |   Economy/Resources

Deutsche Welle: CCP Structural Change – College Graduates Join the Party to Get Better Jobs

Deutsche Welle recently published a digest article based on a report by Friday Weekly – a Hong Kong based magazine. The report focused on female college graduates who are applying for Communist Party membership. The students believed that the structure of the Party is changing due to the fact that 30% – 50% of students apply for Party membership. Although the students generally find the Party’s theories very boring, they are interested in better job opportunities. The Party welcomes young idealists with outstanding academic records and leadership capabilities – though the students are often just acting to demonstrate these qualities.

Source: Deutsche Welle
http://www.deutsche-welle.de/dw/article/0,4307287,00.html

Briefings | | |   Government/Politics

Study Times: Regionalizing RMB will Promote Asian Economies

On June 1, 2009 the Study Times wrote that China should push Reminbi regionalization starting from border trade settlements and direct investment in neighboring countries. Study Times is the journal of the School of the CCPC. The article believes that this step is the key to Asian economy. In doing so, “China should leverage the existing bilateral currency settlement agreements with Korea, Hong Kong and Malaysia to further deepen and expand RMB cooperation in the region. Moreover, China should take advantage of financial markets in Hong Kong in engaging in RMB offshore business, thus making Hong Kong the hub for distribution of RMB to neighboring countries.”

Source: Study Times, June 1, 2009
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=1&id=2685&nid=9756&bid=4&page=1

Briefings | | |   Geo-Strategic Trend

Employment Challenge for College Graduates

Xinhua republished an article from China Youth, which states that as of June 4, only 2.75 million college graduates, 45% of the total number of graduates this year, have received job offers. To ease the unemployment pressure, the government is creating basic level positions in the countryside, remote towns, and less-developed areas and encouraging the graduates to go there.

Source: Xinhua, June 5, 2009
http://news.xinhuanet.com/politics/2009-06/05/content_11489469.htm

Briefings | | |   Economy/Resources

China Shows Its Anti-stealth Airplane Radar

Xinhua republished an article by the Global Times reporting that on April 1, 2009, at the “2009 Fifth World Radar Expo,” China showed photos of the DWL002 passive detection radar system, China’s newest anti-stealth airplane radar system. DWL002 has the following characteristics: high crypticity; a long detection range; a strong anti-interference capability; good mobility; a wide working frequency; flexible signal adaptability; highly precise locationing; and target identification capability.

The article stated that DWL002 radar system is the most advanced anti-stealth airplane radar system in the world. Its main performance measures are superior to radar systems developed by other countries in the same category. This system is likely to be the number one choice for many countries that are facing the threat of (U.S.) stealth airplanes.

Source: Xinhua, May 22, 2009
http://www.xinhuanet.org/bencandy.php?fid=5&id=50518

Briefings | | |   Defense/Military

China Emphasizes Maintaining Stability during the Tiananmen 20 Year Anniversary

The Hong Kong China News Agency reported that all mainland media remained mute during the 20th anniversary of the Tiananmen Massacre. Chinese officials promoted maintaining social stability (Editor’s Note: that translates as no protests or petitions) to keep June 4 quiet. The report listed a few examples:

At end of the May, Liu Qi, Beijing City Party Secretary went to the Beijing West Train Station to check the implementation of the “maintaining stability” work there. On June 2, Zhang Gaoli, Tianjin City Party Secretary said that maintaining stability is a top priority and challenged the Tianjin officials to  make Tianjin the “safest” area in China. On May 31 and June 1, Wang Yang, the Party Secretary of Guangdong Province visited the maintaining stability pilot center for the township’s comprehensive appeals offices and stated that stability is the number one responsibility (for the government).

Source: Hong Kong China News Agency, June 4, 2009
http://www.hkcna.hk/content/2009/0604/13817.shtml

Briefings | | |   Social Stability