On December 4th, 2012, Xinhua published an article on how widespread private lending has become in China. Many small and medium sized enterprises borrow money using private financing. Recently, the Public Security Bureau in Zhangzhou City, Fujian Province issued a warning to alert the people about “illegal funding activities.” One recent incident of “illegal funding" involved up to 80 million yuan.
Source: Xinhua, December 4, 2012
http://news.xinhuanet.com/2012-12/04/c_113895746.htm
On November 20, 2012, Qiushi Theory, a periodical on political theory published by the Central Committee of the Chinese Communist Party and the CCP Central Committee school, reprinted an article from Ziguangge (cpc.people.com.cn), a periodical under People’s Daily, having the title, “Boosting Consumption Is the Fundamental Way for China to Get Out of Its Economic Predicament”.
According to the article, China’s economic growth rate has fallen over the past several quarters. The period of the export-led economy may be over. Therefore, China’s economy must shift from excessive dependence on external markets to production for the domestic market. China’s Ministry of Commerce has established a goal in its 12th Five-Year Plan of having around a 15% average annual increase in total retail sales of consumer goods so as to reach the goal of 32 trillion yuan by 2015.
Source: Qiushi Theory, November 20, 2012
http://www.qstheory.cn/jj/jjggyfz/201211/t20121122_195708.htm
On December 3, 2012, Radio Free Asia published an article titled “Some Foreign Companies in China Are Alleged as ‘Sweatshops.’” According to a report released by “China Labor Watch,” a non-governmental organization with headquarters in New York City, Mattel company and other foreign enterprises in China have become “sweatshops.” The article said that Mattel, the world’s largest toy manufacturer, has four factories in China. Its workers often have to work overtime, sometimes up to 113 overtime hours per month. This is considerably more than the overtime hours allowed by law.
Source: Radio Free Asia, December 3, 2012
http://www.rfa.org/mandarin/yataibaodao/nu-12032012155429.html
Jinghua Times recently reported that the new version of the Chinese smart passport (which has an implanted chip) has triggered complaints from neighboring countries. The new passport includes pages with pictures and a map of China that includes disputed regions in Tibet and the South China Sea. So far, Vietnam, The Philippines, and India have complained. These countries are instead issuing the visa on a separate piece of paper instead of the visa page of the passport. Normal entry into these countries is still granted, even if the new passport is used. The United States suggested that it still considers the new passport to be a valid document and U.S. officials will still use the new passport for visa and stamps. However that does not mean the United States agrees with the borders drawn on the map. A spokesman for the Chinese Ministry of Foreign Affairs commented that neighboring countries should not overreact to the map part of the passport.
Source: Jinghua Times, November 30, 2012
http://epaper.jinghua.cn/html/2012-11/30/content_1908282.htm
China Review News (CRN) recently published a commentary about the issue of reforming the system for the redistribution of wealth, which has been identified as a focal point of public opinion. The commentary suggested that a breakthrough will be required in five areas to solve the problem of the unfairness in the distribution of wealth: (1) First-time distribution needs to avoid the sharp differences that exist between the company’s growth versus wage growth and between management income versus the income of the average worker. (2) The process needs to include the growth of government income versus the growth of citizen’s income. (3) The reform must solve the root cause of “gray income” and corruption. (4) Enhanced tax system reform is required to improve the balancing function of taxation. (5) The average citizen’s income level should be raised when the job market expands. The commentary also called for protecting China’s middle-class population. The author concluded that reform is not a simple matter. Instead, it requires adjustments in the political, economic, legal system, and cultural areas.
Source:China Review News, November 29, 2012
http://www.zhgpl.com/crn-webapp/doc/docDetailCreate.jsp?coluid=53&kindid=0&docid=102320766&mdate=1129080126
Yangtze Evening News recently reported that 27 percent of Chinese company owners having over RMB 100 million yuan (around US$16 million) worth of private property have completed the processes of emigrating to foreign countries. The statistics are based on a research report jointly issued by the Merchants Bank and Bain Consulting. Forty-seven percent of the same sample are considering the emigration option. The main reasons given for the decision to emigrate are the children’s education, retirement planning, and risk management for their wealth. The report expressed the concern that this new wave of emigration is coupled with a massive outflow of capital from China to the outside world, which may damage the effort to expand China’s domestic consumer market.
Source: Yangtze Evening News, November 30, 2012
http://epaper.yzwb.net/html_t/2012-11/30/content_41296.htm?div=-1
The EU-China Year of Intercultural Dialogue concluded in Beijing on October 30, 2012. The opening ceremony of the 2012 Dialogue was held in Brussels in February 2012. Since then, close to 300 collaborative projects were completed in areas such as literature, art, philosophy, and language. A total of 22 municipal and provincial regions in China and 27 EU countries participated. A joint statement issued by both parties said that the two regions wished to continue further collaboration in the future.
Source: Xinhua, November 30, 2012
http://news.xinhuanet.com/2012-11/30/c_124031139.htm
On November 30, 2012, the Disciplinary Committee of Shandong Province launched an investigation of Shan Zhende, Deputy Director of the Shandong Province Department of Agriculture, based on a statement he wrote to his mistress promising that he would divorce his wife and marry her. This incident took place one week after Lei Zhengfu, the District Party Secretary in Chongqing, stepped down from his post due to a sex tape scandal [Editor: according media reports, Lei was fired after tapes showing him with an 18-year-old woman, allegedly hired to bribe him, went viral].
Xinhua published a commentary quoting statistics from the Central Disciplinary Committee that showed that 95 percent of problem officials have mistresses. The commentary stated, "We can’t simply rely on the (issue of) mistresses to crack down on corruption." It called for harsher anti-corruption action and a disciplinary system that prevents Party officials from being misguided.
Source: Xinhua, December 2, 2012
http://news.xinhuanet.com/politics/2012-12/02/c_113875628.htm