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Guangming Daily: Stepping up Internet Control

On December 19, 2012, the state media, Guangming Daily, published a commentary titled “Establishing the Bottom Line in Applying the Rule of Law to the Internet World.” The commentary proclaimed that there is an urgent need to regulate activities on the Internet. “People use the Internet as a tool in their livelihood and in production. Activities on the Internet reflect society’s activities. The Internet cannot and should not become an empire where there is freedom but no restraint. … After all, the Internet should  never be above the law. … For China, we must immediately implement the rule of law to re-enforce control over the Internet. … It is urgent that legislation be passed to regulate the Chinese Internet.”

Source: Guangming Daily reprinted by Xinhua, December 20, 2012
http://news.xinhuanet.com/newmedia/2012-12/20/c_124121216.htm

Briefings | | |   Government/Politics

China’s New Regulation Draft on Internet Control

On September 19, 2012, the State Council’s Legislative Affairs Office issued an “Approach to the Management of Internet Publishing Services” (draft version). The formal version is supposed to replace the existing “Provisional Regulations on Management of Internet Publishing” on January 10, 2013.

The “Approach” states that the General Administration of Press and Publication (GAPP) is the agency that oversees Internet publishing services, which is also under the jurisdiction of the Ministry of Industry and Information Technology (MIIT).

The “Approach” requires that all those providing services must obtain an Internet Publishing Services Permit. Such services include the digital publication of books, newspapers, periodicals, music and video products, and other “informative and thoughtful text, pictures, games, animation and original digital works.”

The draft version provides that the editor is responsible for the quality and legality of the contents. The “Approach” forbids contents that “oppose the fundamental principles of the Constitution,” “leak state secrets, endanger national security, or compromise national honor or interest,” “spread rumors, disrupt the social order, or sabotage social stability,” and “endanger social morality or good ethnic cultural traditions.”
 
The “Approach” forbids joint ventures or foreign operated identities from engaging in web publishing services. GAPP must approve the publication of online games authored by owners with foreign copyrights.

An annual check of web publishing identities is required. Violators of the regulation are subject to penalties including suspension of the permit, shutting down the website, or even criminal prosecution.

Source: Website of the State Council’s Legislative Affairs Office, December 19, 2012
http://www.chinalaw.gov.cn/article/cazjgg/201212/20121200379100.shtml

Briefings | | |   Information/Technology

Chinese Military Expert Calls for Immediately Establishing a National Coast Guard

Luo Yuan, Rear Admiral from the Chinese Academy of Military Science and Secretary-General of the China Strategic Culture Promotion Association, published an article in Xinhua in which he called for the establishment of a National Coast Guard that would counter the actions of countries that are in conflict with China in the East and South China Seas. 

Luo dismissed the idea that peaceful enforcement of Maritime law in the exclusive economic zone could occur simply by following the United Nations Convention on the Law of the Sea. He asked, “Will the United States and other autocratic countries be able to comply with this principle? The United States hasn’t even signed the United Nations Convention on the Law of the Sea, so how can it be a ‘nice girl’ [follow this principle]?" 
“Currently, our Maritime law enforcement forces are too scattered and thin. … Why not establish a National Coast Guard that would form a quasi-military force? This would not only provide greater leeway and actionable space for our diplomatic and military struggle, but it would also allow us to gradually take the controlling position in protecting our Maritime rights and in our law enforcement actions.” 
“Using our peaceful law enforcement to deal with the opponent’s armed law enforcement would not bring peace. The ‘asymmetric’ confrontation of our fishery boats and ocean surveillance ships against our opponents’ paramilitary forces would inevitably harbor a potential crisis. Therefore, the formation of a National Coast Guard is an urgent matter that requires immediate attention.” 
Source: Xinhua, December 14, 2012 
http://news.xinhuanet.com/world/2012-12/14/c_124096812.htm
Briefings | | |   Defense/Military

People’s Daily Signals Tightening of Internet Blogging

On December 18, 2012, People’s Daily published an article titled “The Internet Is Not above the Law.” The article raised the issue that the Internet has been used for commercial fraud, malicious attacks, and rumor mongering. “[We] must be aware that the Internet is not above the law and that those who express themselves on the Internet may violate the law, knowingly or unknowingly. … An open China needs an Internet world that is civil, law-abiding, and healthy. Whether it is the government monitoring authorities or netizens themselves, we should all value this platform. It is unrealistic to require that every person’s remarks be correct and expressed in a right way; yet it is mandatory that people should be aware of the rule of law and be accountable for their own actions and remarks.”

Source: People’s Daily, December 18, 2012
http://society.people.com.cn/n/2012/1218/c1008-19929548.html

Briefings | | |   Government/Politics

Military Professor: China Must Be on Guard against ‘Peace Disease’

On December 12, 2012, the International Herald Leader, a newspaper under Xinhua News Agency, published an article titled, “Liu Minggfu: China Must Be on Guard against ‘Peace Disease.’” According to Liu Mingfu, a professor at the PLA National Defense University, we must firmly grasp the “Missile” (People’s Safety) and the “Egg” (People’s Livelihood) with both hands.

Liu stated, “The development of China’s military forces is behind China’s economic development; it lags behind what is needed for the Sino-US strategic competition. Therefore, China must increase military spending and speed up the pace of the army’s build-up.”

Source: International Herald Leader, December 12, 2012
http://ihl.cankaoxiaoxi.com/2012/1212/134491.shtml

Briefings | | |   Geo-Strategic Trend

The Chinese Government Actively Supports the Development of Confucius Institutes

On Dec. 16, 2012, China’s State Councilor, Liu Yandong, delivered a speech at the opening ceremony of the seventh conference of Confucius Institutes. According to Liu, who is also the president the Confucius Institute Headquarters Council, the Chinese government will actively support the steady development of Confucius Institutes, following the spirit of the 18th National Congress of the Chinese Communist Party.

In 2012, 400 Confucius Institutes and over 500 Confucius Classrooms were in operation globally. They received about 655,000 registered students from 108 countries and regions. Liu encouraged Confucius Institutes to expand the coverage of their operations from major cities to other regions and from colleges to communities.

Source: Xinhua, December 16, 2012
http://news.xinhuanet.com/2012-12/16/c_114044652.htm

Briefings | | |   Geo-Strategic Trend

China’s Wealth and Brain Drain: China Leads in International Emigration

According to China’s Academy of Social Science’s Blue Book, China is experiencing its third large-scale overseas emigration. The affluent and the intellectual elite are the main groups leading the emigration process. China is suffering a wealth and brain drain. The findings were published on Monday, December 17, 2012, in China’s Annual Report on Chinese International Migration 2012. The number of overseas Chinese was reported to have reached 45 million in 2010, topping the world’s list of overseas emigres in absolute numbers. In 2011, over 150,000 Chinese became permanent citizens in major immigrant countries including the United States, Canada, Australia, and New Zealand. Of that number, 87,017 Chinese have been granted permanent residency in the United States.

Worldwide, international migration increased from 195 million in 2005 to 214 million in 2010, constituting 3.1 percent of the world’s population.

Source: China Review News, December 17, 2012
http://www.zhgpl.com/doc/1023/5/0/6/102350692.html?coluid=45&kindid=0&docid=102350692&mdate=1217174755

Briefings | | |   Grapevine

Xinhua: Quick Risk Management Required after U.S. QE4

Xinhua recently published an article about the new QE4 policy that the U.S. Federal Reserve announced on December 13. The article called for early risk management reactions to remedy the damage. The U.S. Fed’s QE3 and QE4 operations will inject a combined $85 billion in monthly currency. The article expressed the belief that the U.S. move was much faster than the international community expected. The Fed announced its QE3 plan only three months ago. Since China has the world’s largest foreign exchange reserve, mostly in U.S. Dollars, the QE4 execution will have the heaviest impact on China. It can also cause rapid appreciation of the Chinese currency. The immediate result will be a slowdown in Chinese exports. The article suggested that China should take similar actions to increase the supply of the Chinese currency so that the appreciation expectation can be stopped. The author called the U.S. “selfish” and concluded that the Fed is introducing an unnecessary “depreciation war.”
Source: Xinhua, December 14, 2012
http://news.xinhuanet.com/comments/2012-12/14/c_114022883.htm
Briefings | | |   Economy/Resources