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Huanqiu: China Must Avoid Being Kidnapped by the DPRK’s Nuclear Policy

On February 6, 2013, Huanqiu (the Chinese edition of Global Times) published an editorial article titled “China Treasures the Sino-DPRK Friendship; North Korea Should Also Cherish It.” Below is a summary of the article:

It is beyond doubt that North Korea is very important to China. However, China must avoid being kidnapped by the DPRK’s nuclear policy. If North Korea insists on conducting a third nuclear test, North Korea will get less assistance from China. However, China probably will not “punish” North Korea in the same way as the U.S., Japan, and the South Koreans. China is not afraid of North Korea, which is an important principle. Some Chinese scholars, however, do have concerns about a breakup of the Sino-DPRK relationship due to China’s participation in international sanctions against North Korea. Without China’s support, North Korea may “survive” but it will certainly not be better off.

Source: Huanqiu, February 6, 2013
http://opinion.huanqiu.com/editorial/2013-02/3622838.html

Briefings | | |   Geo-Strategic Trend

Xinhua: Several Provinces Require Domestic-Branded Cars for Government Procurement

Xinhua recently reported that several provinces just released regulations that require government branches to use domestic-branded cars. These new rules are the implementation of the general requirements that the new Communist Party leadership recently developed. These provinces include Ningxia, Hunan, Gansu, Anhui, and Xinjiang. Shanghai and the City of Guangzhou (the capital of Guangdong Province) have already started purchasing domestic cars. However, the new regulations apply only when current government cars reach the end of their life. Meanwhile, there is still no official Catalog of Domestic Cars, which, starting in 2011, triggered a large internal debate. The main pressure came from foreign governments. China did not join the optional WTO Agreement on Government Procurement. 
Source: Xinhua, February 4, 2013
http://news.xinhuanet.com/local/2013-02/04/c_114598573.htm
Briefings | | |   Economy/Resources

CRN: A Chinese Company Now Operates Gwadar Port

China Review News (CRN) recently reported that a Chinese company now operates the Pakistani port named Gwadar. Gwadar Port is a warm-water, deep-sea port located on the Arabian Sea, at the mouth of the Persian Gulf, approximately 290 miles west of Karachi. The Port is situated near the strategic Strait of Hormuz and its busy trading and oil shipping lanes. This Chinese operating power has significant value for constructing oil pipelines from the Middle East to Western China. The Port also offers China a land-based path to the Indian Ocean. However, although the Gwadar Port appears to be a good opportunity for the Chinese Navy to establish a military base, the infrastructure has significant limitations. Vessel and weapon repair facilities, as well as ammunition storage and medical supplies, are not available. In addition, a strong Chinese presence at the Gwadar Port arouses concern in both India and the United States. 
Source: China Review News, February 3, 2013
http://www.zhgpl.com/doc/1024/2/5/9/102425913.html?coluid=169&kindid=0&docid=102425913&mdate=0203000522
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BBC Chinese: Doing Business with China Weakens Press Freedom in HK and Taiwan

BBC Chinese recently reported on the World Press Freedom Index for 2013 that Reporters Without Borders published on January 30, 2013. The list ranked the press freedom in the countries of the world. The ratings for both Hong Kong and Taiwan were lower than the previous year. Among 179 countries and regions, Hong Kong ranked 58th (dropping from 54th last year) and Taiwan ranked 47th (dropping from 45th last year). Well-known Hong Kong political analyst Lin Heli suggested that the lowered rankings are mainly the result of increased business activities between the two regions and the Mainland. The rankings have been on the decline ever since the year 1997, when Hong Kong returned to Chinese rule. Lin expressed the belief that many Hong Kong media owners invested heavily in the Mainland. This might have played an important role in media self-censorship. Meanwhile, the semi-official branch of the central government in Hong Kong has often conducted “conversations” with Hong Kong media owners and senior editors. Taiwan has a similar situation.
Source: BBC Chinese, January 30, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/01/130130_iv_press_freedom_lin_heli.shtml
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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 | | |   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 | | |   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 | | |   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

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