Briefings – Page 774

Discrepancy between Local and Central Governments GDP Statistics

According to a recent Guangming Daily article, a reporter found that the sum of China’s provincial accounting of GDP statistics for 2012 totaled 57.69 trillion yuan, 5.76trillion higher than the National Bureau of Statistics’ preliminary estimate of 51.93 trillion. The difference is the equivalent of the total GDP for Guangdong Province’s economy.

The problem has existed for years. Since 1985 when the central government and the local governments started to do independent accounting of GDP statistics, the sum of the provincial figures has been higher than the total GDP. For example, the provincial total in 2009 exceeded the national figure by 2.68 trillion yuan; the difference increased to 3.2 trillion yuan in 2010, and 4.6 trillion in 2011. It was 5.76 trillion for 2012.

In March 2012, the National Bureau of Statistics exposed cases in which local governments were involved in local enterprises’ fraudulent statistical reporting. The article called for a reform of the current system of using GDP figures as a major factor in evaluating local officials’ performance.

Source: Guangming Daily, February 4, 2013
http://politics.gmw.cn/2013-02/04/content_6613391.htm

Briefings | | February 4, 2013 | Economy/Resources

Survey Finds the Average Life Expectancy of a Chinese Manufacturer Is 11.1 Years

The Global Market Group, a China based business service provider, conducted a recent survey in which it found that the average "life expectancy" of Chinese manufacturing enterprises is 11.1 years, while only 7.9 percent last more than 20 years.

From a sample of over 1,000 manufacturers in the Pearl River Delta and the Yangtze River Delta region, the survey found that very few enterprises have lived as long as 30 years. Most of those had Taiwan or Hong Kong investors. About 45 percent of those surveyed had been in existence less than 10 years.

Source: Xinhua, February, 3, 2013
http://news.xinhuanet.com/energy/2013-02/03/c_124315773.htm

Briefings | | February 4, 2013 | Economy/Resources

A Panamanian Lawyer’s View on China’s Silent Army

BBC Chinese recently interviewed a Panamanian lawyer, Berta Thayer, about her view on the new book, China’s Silent Army. It was written by two Spanish journalists, who documented the unprecedented growth of China’s economic investment in the developing world and its impact at the local level.

According to the United Nations, in 2001, China’s investment in Latin America was less than one US$1 billion, while the figure grew to 44 billion in 2010.

For example, according to Thayer, in Panama, about one fifth of its 3.3 million population is either ethnic Chinese or of Chinese descent. China is already the second largest client of the Panama Canal, next to the U.S. China is also the largest supplier in Panama’s Colon Free Zone, whose annual trade volume amounts to US$5 billion.

Source: BBC Chinese, February 1, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/02/130201_china_silent_army_berta.shtml

Briefings | | February 4, 2013 | Geo-Strategic Trend

Xinhua: What’s the Hidden Agenda behind the Japanese Politicians’ Frequent Visits to China

A Xinhua article commented on Japan’s Prime Minister Abe’s intentions regarding China policy. The article stated that “important political officials and former heads of government in Japan have visited China recently, one after the other. In just two weeks, Japan has sent many people to China for a visit.” The article asked the question, “What do these Japanese visits mean?”

The article commented, “To cope with the thorny issue of Sino-Japanese relations, Abe is subtly playing double faces: on the one hand, he is showing the ‘big and hard-line’ military ambition; on the other hand, he is ‘lowering his profile’ to stay humble in order to obtain economic interests at the Sino-Japanese summit.”

“Abe is trying to use Japanese officials’ intensive visits to China to achieve multiple purposes: paving the way to obtain economic benefits from China; alleviating domestic pressure by talking about the Diaoyu Islands dispute between China and Japan; and, at the same time, finding an excuse to increase militarily arms preparations.”

The article warns, “This time Abe perhaps made a wrong calculation; he underestimated the will and wisdom of the Chinese leaders. Chinese leaders have repeatedly made it clear that China will never trade its core national interest. … If Abe really wants to press the "reset" button on Sino-Japanese relations, to ‘walk in the same direction (as China) is the only correct path. No matter how many ‘personal letters’ or visits to China, perhaps it (Japan) will lose credibility because of the military ambitions of the Japanese side.”

Source: Xinhua, January 31, 2013

http://news.xinhuanet.com/world/2013-01/31/c_124295594.htm

Briefings | | February 1, 2013 | Geo-Strategic Trend

Xi Jinping: Armed Police Must Follow the Party’s Commands

On January 29, Xi Jinping gave a speech during an inspection tour of the armed police in Beijing. During his speech, he underscored the stability of the armed police and the importance of its absolute loyalty to the Communist Party of China. Xi stated, “The armed police forces should be united, secure and stable.” The armed police should follow the command of the leadership of the Communist Party. “Absolute loyalty to the Party is always the first and foremost political requirement for them. … [We] must ensure the absolute loyalty, absolute purity, and absolute reliability of the armed police forces.”

Source: Xinhua, January 29, 2013
http://news.xinhuanet.com/politics/2013-01/29/c_114545239.htm

Briefings | | February 1, 2013 | Government/Politics

Beijing in Smog: Affected Regions Increasing

China’s Ministry of Environmental Protection released information that, according to the weather satellite remote sensing indicator, as of January 30, the smog area had increased to 1.43 million square kilometers, a growth of 130,000 square kilometer from the previous day. Since January 30, the smog has been getting worse. Shanghai, Jiangsu Province, and neighboring regions have become “highly polluted” from previously being “slightly polluted." Beijing, Tianjin, and neighboring regions remain “highly polluted.” On January 28, China’s National Meteorological Center (NMC) implemented a three-tier color-coded weather warning system to alert the public to the severity of the smog. The system uses yellow to indicate moderately smoggy weather, orange for severe conditions, and red for extremely severe levels of smog. The authorities continue to issue a yellow warning for smog.

Source: Xinhua, January 31, 2013
http://news.xinhuanet.com/yuqing/2013-01/31/c_124304751_2.htm

Briefings | | February 1, 2013 | Economy/Resources

Car Drivers in China Exceeded 200 Million in 2012

China’s Ministry of Public Security recently announced that, as of the end of 2012, the nation’s registered motor vehicles reached 240 million and the number of drivers rose to 260 million. The number of car drivers increased by 26.5 million. For the first time that number exceeded 200 million.

The number of major highway accidents has also increased. Among the 25 major serious road traffic incidents that occurred in 2012, eight occurred on the highway, accounting for 32 percent.

Source: Xinhua, January 30, 2013
http://news.xinhuanet.com/politics/2013-01/30/c_114558196.htm

Briefings | | January 31, 2013 | Economy/Resources

Radio Free Asia: China’s Working-age Population Drops for the First Time in Decades

China’s National Bureau of Statistics recently released figures showing that, in 2012, the number of Chinese who are of working age, that is, between 15 and 59, has declined significantly since 1978. The decrease in 2011 was 3.45 million.

Yao Shujie, a professor at the University of Nottingham, in the UK, believes that 30 years of family planning in China first showed up in 2006 as a decrease in the number of primary school students. That the working age population has now contracted for the first time foretells the looming end of an era of abundant cheap labor.

Another report by the China Development Research Foundation predicted that, between 2010 and 2020, China’s working-age population will decrease by 29 million.

Source: Radio Free Asia, January 30, 2013
http://www.rfa.org/mandarin/yataibaodao/jingmao/gr-01302013160016.html