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Briefings - 1162. page

Why Foreign Investments “Flee” China?

International Herald Leader, a newspaper under Xinhua, published an article reporting that it became popular for foreign business invested in China to take their money and run away, abandoning their companies or factories in China and without filing for bankruptcy.

There are reasons for foreign investors to choose the “flee” strategy instead of a normal exit process. First, China has a lengthy process for foreign companies to terminate business in China. The bankruptcy process lasts 65 to 165 days. Some local governments even drag it to six months or a year. Second, China’s law requires the company to bear “unlimited liability” for its debt even after it declares bankruptcy.

“(If it is) easy to enter but hard to exit, (it) is definitely not a good investment environment.” said a Japanese trade promoter in Beijing.

Source, International Herald Leader, April 24, 2009
http://news.xinhuanet.com/herald/2009-04/24/content_11248230.htm

Briefings | | |   Economy/Resources

China Loses 160 Thousand Acres of Cultivated Land Annually Due to Soil Erosion

China News reported that on April 12, 2008, Chen Lei, the Minister of the Ministry of Water Resources said that China lost more than eight million acres of cultivated land due to soil erosion in the past fifty years, averaging an annual loss of 160 thousand acres.

Chen Lei said that the northwest region loses one centimeter of surface soil every year. In some parts of northeast China, which has always had rich soil, the depth of cultivated soil has decreased from one meter to less than twenty centimeters. 77% of the land in northern China has less than 30 centimeters of surface soil.

Soil erosion not only destroys soil resources, but it is also a main factor for pollution. China’s scientists estimate that soil erosion creates economic loss of 2.25% of the GDP. The environmental damage is immeasurable.

Source: China News, April 12, 2009
http://www.chinanews.com.cn/gn/news/2009/04-12/1642204.shtml

Briefings | | |   Economy/Resources

China Announced Policy on Administering Private Publishing Companies

Xinhua News republished an Oriental Morning Post article on April 7 regarding the official announcement of the new policy governing the private publishing industry in China. The policy clearly stated that private publishing will be included in the formal planning and administration of China’s overall publishing industry.

Due to the tight control the Chinese government has on the publishing industry, private publishing companies were constantly facing the pressure of a potential violation of government rules. However, while validating the status of the private publishing industry, the new policy also emphasizes the government’s role of "guiding" and "regulating" the behaviors of the private publishing companies.

The new policy is unclear about foreign capital’s role in the private publishing sector. The report stated a belief that the new policy will not heavily impact state-owned publishing companies.

Source: Oriental Morning Post, April 7, 2009.
http://epaper.dfdaily.com/dfzb/html/2009-04/07/content_123104.htm

Briefings | | |   Information/Technology

Minister of National Defense: China Can Wipe out Any Enemy within First Island Chain

An article posted by an unnamed author on the forum of the Global Times, under the People’s Daily, discussed some insider knowledge about the North Korea Nuclear Crisis in 2003.

The article claimed that the Chinese Defense Minister Liang Guanglie ordered over 100,000 combat troops to replace the Chinese North Korea border patrol police after obtaining intelligence of a US surgical operation to remove the current North Korean regime. Two more steps were taken: one on the South China front bordering Myanmar and one on the Japanese front by sending a submarine to the Tokyo Bay. Liang later boasted during a visit to the US, "China can wipe out any enemy within First Island Chain."

Source: Global Times Forum, April 16, 2009.
http://bbs.huanqiu.com/viewthread.php?tid=188284&fromui

(Chinascope notes: The ultimate source of this article is unclear. Officially, the Chinese Defense Minister does not have the direct authority to move troops.)

Briefings | | |   Defense/Military

China Supports the US “800 Plan” for Chinese Language Education

The China Press, a US based publication sponsored by the Chinese government, reported that the Chinese State Councilor Liu Yandong announced China’s support of the "800 Plan." The plan consists of: a scholarship for 800 people, an invitation to 800 US students to attend a summer camp in China and an invitation to 800 US education professionals to visit China every year.

The report suggested that the demand of learning Chinese is heating up in the States. It helps improve the strategic relationship between the two countries.

Source: The China Press, April 19, 2009.
http://www.chinapressusa.com/huajiao/2009-04/16/content_207951.htm

[Editor’s note: The plan is channeled through the Chinese state-sponsored Confucius Institute, which offers Chinese language courses with messages considered “positive” by the Chinese government.]

Briefings | | |   Government/Politics

Xinhua and CCTV to Invest in Enhancing China’s Soft Power Overseas

In order to enhance its global influence and carry out the directive from the central administration to focus on propaganda work overseas, China has laid out a media strategy to build up its overseas media power. It will "follow the rules of the games (with the Western media) but is also capable of expressing a completely different position and perspective."

Xinhua and CCTV are actively recruiting resources worldwide so they can "bring China’s voice overseas." With projected financial loss of 20 million yuan in the first year, Global Times launched its English edition on April 20, making it China’s second English language news media published outside of China (the other is the People’s Daily). Xinhua said it will add more languages to its online news and invest in mobile news services. CCTV will add Russian and Arabic to its foreign language channels and hopes to have 11 new channels in 7 languages within the next three years.

Source: Sing Tao News Network, April 27, 2009
http://www.stnn.cc/china/200904/t20090427_1018499.html

Briefings | | |   Government/Politics

The Central Propaganda Administration Issues Guidelines on Patriotic Education

In gearing up for the 60 year anniversary of the Chinese Communist Party’s rule in China, the General Office of the Party issued guidelines for patriotic education. The guidelines consist of six parts with detailed requirements for all levels of government bodies to follow.

Source: Xinhua, April 26, 2009
http://news.xinhuanet.com/newscenter/2009-04/26/content_11262168.htm

Briefings | | |   Government/Politics

Sharp Increase in Profits of State-Owned Enterprises Challenged

Economists are concerned that the growth may not be sustainable, according to a panel discussion during a State TV program. Large State-owned enterprises saw a sharp increase in profits, according to Li Rongrong, Director of State-owned Assets Supervision and Administration Commission of the State council on April 19, 2009. In response, economists at the panel indicated that such growth was primarily fueled by preferential treatment and State monoply, thus its sustainability questionable. Others found it worrisome that 4,200 small to mid companies have been declining in contrast to the thriving large State-owned enterprises.

Source: China Central TV, April 24, 2009
http://news.cctv.com/china/20090424/101947.shtml

Briefings | | |   Economy/Resources