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Briefings - 790. page

Government Procurement Market Lacks Transparency

The China Federation of Logistics & Purchasing (CFLP) announced that the China Public Procurement website (http://www.china-cpp.com/) has been officially established, with headquarters in Wuhan, Hubei Province. It is considered the world’s largest online trading and service center.

According to Chen Yuanzhong, Vice Chairman of the CFLP, government procurement in 2011 was 11.3 trillion yuan (US$1.8 trillion), which accounted for 11 percent of total fiscal spending. However, government procurement is not regulated and lacks transparency and efficiency. China’s procurement market would reach 50 trillion yuan (US$8 trillion) if spending on education, health, housing, railroad, transportation, and energy were included. This number makes China the largest procurement market in the world.

Source: Xinhua, November 4, 2012
http://news.xinhuanet.com/fortune/2012-11/04/c_113597255.htm

Military Expert: China Is only 15-Years behind the U.S. and Russia in Fighter Development

On October 31, 2012, China’s second stealth jet fighter, the J-31, made its successful maiden flight. Commenting on the significance of the event, China’s aviation expert, Yongling Xu, said in an exclusive interview with a People’s Daily reporter, "China has narrowed the gap in the field of aviation technology between itself and foreign advanced countries to about 15 years. With the support of China’s strong national (financial) power, coupled with the ingenuity of the Chinese people, the day that China’s aviation industry catches up with the United States is just around the corner.” 

Source: People’s Daily, November 1, 2012 
http://military.people.com.cn/n/2012/1101/c1011-19464982.html

PLA Daily: Resolutely Follow the Commands of Hu Jintao

On November 1, 2012, the People’s Liberation Army Daily issued an editorial in support of Hu Jintao. The editorial stressed the Communist Party’s absolute control over the military. It stated that the military is the main support for the Party and the country; it is responsible for the Party’s political dominance, implying that the role of the military in the rifts among the Party leaders is critical. The editorial warned, “The hostile forces in and outside China are ready to make trouble. … (We) must keep a clear mind and take a firm stand on major issues. … (The military) must consciously be highly consistent with the Party Central Committee and the Central Military Commission ideologically, politically, and in action and resolutely follow the commands of the Party Central Committee, the Central Military Commission, and Chairman Hu.

[Editor’s note: The PLA editorial on November 1, 2012, has been interpreted as showing support for Premiere Wen Jiabao after the New York Times published an article on October 26, titled “Billions in Hidden Riches for Family of Chinese Leader,” referring to Wen Jiabao. Wen, who is close to Hu Jintao, is known for his stance against the faction of former President Jiang Zemin and his cohorts such as the demoted Bo Xilai who, according to reports, was instrumental in the forced organ harvesting of Falun Gong practitioners in China.]

Source: People’s Liberation Army Daily reprinted on the Chinese Communist Party website, November 1, 2012
http://theory.people.com.cn/n/2012/1101/c49151-19459961.html

Forty Percent of China’s Civil Servants Plan Early Retirement

According to a recent survey of China’s civil servants (government employees), 38.53 percent of those surveyed experienced that the reality of their government jobs turned out to be way below their expectations. Over 70 percent responded that large scale downsizing of the government is likely. With respect to the future of a government career, 39.10 percent are “preparing to retire early, just in case,” to play it safe; 10.11 percent are considering leaving the government for either a job in the private sector or to continue their education. The remaining 50.79 percent are not optimistic about their career prospects; their attitude is, "one step at a time, and deal with changes by not changing.”

Source: Xiaoxiang Morning News reprinted by Sina.com, October 31, 2012
http://edu.sina.com.cn/official/2012-10-31/1501360447.shtml

China’s Fiscal Revenue Slows Down, with Non-tax Revenue Filling the Gap

The Ministry of Finance’s statistics show that the fiscal revenue for January-September was 9.1 trillion yuan (US$1.5 trillion), an increase of 892.5 billion (US$143 billion) or 10.9% over the same period last year and 18.6 percent points lower than the growth for the same period last year. The tax revenue was 7.7 trillion yuan (US$1.2 trillion), a year-over-year increase of 8.6 percent, down 18.8 percent from the same period last year.

According to an official from the Ministry, since the beginning of this year, due to the downward macroeconomic pressure, the local fiscal revenue growth turned weak. To compensate for the gap, non-tax revenues, or various types of fees, are becoming an increasing source of fiscal revenue.

For the first three quarters of 2012, the non-tax revenue in many provinces and cities has grown far more than the tax revenue. Tianjin saw an increase in non-tax revenue (54.75%) that was more than 40 percentage points higher than the increase in tax revenue (10.86%); Anhui’s non-tax revenue (52.1%) increased more than 30 percentage points more than tax revenue (15.3%); Guangdong had non-tax revenue (25.89%) growing higher than the tax revenue (8.15%) of nearly 18 percentage points. In some places, imposing fines has become an important part of the non-tax revenue.

Source: Nanfang Weekend, October 30, 2012
http://www.infzm.com/content/82459

China News Week: American Groups, in the China School Camp (Pro-China) or the Anti-China Camp?

China Newsweek published an article that categorized a handful of American organizations into one of two camps: the “China School (pro-China) camp” and the “anti-China camp.” 

The “anti-China camp” includes the following: 1) the U.S. military industrial complex (U.S. military institutions, arms dealers, and its associated consortium); 2) the AFL-CIO; 3) American religious organizations; 4) Human Rights Watch; 5) The National Endowment for Democracy; 6) the U.S. Business & Industry Council; 7) the U.S. Congressional Human Rights Caucus; 8) the U.S. Tibet Committee for Refugees; 9) Radio Free Asia; 10) the United Steelworkers of America; 11) the United Auto Workers Union; 12) the Alliance of American Manufacturing. 
The “pro-China camp” includes: 1) the America-China Society; 2) the National Committee on United States-China Relations; 3) the United States-China Business Council (USCBC); 4) the Sino-U.S. Joint Economic Committee; 5) the Sino-U.S. Joint Commission on Commerce and Trade; 6) the National U.S.-China People’s Friendship Association (USCPFA); 7) the U.S.-China Chamber of Commerce; 8) The Committee of 100; 9). the U.S.-China Association for Promotion of Economy and Trade (UCAPET); 10) the China General Chamber of Commerce – U.S.A.; 11) the American Chinese Federation of Industry & Commerce; 12) Large American enterprises that have a high degree of globalization, such as Microsoft, Boeing, and the giants of the U.S. auto industry. 
 Source: China Newsweek, October 25, 2012 
http://insight.inewsweek.cn/report-7630-page-6.html

Xi Jinping Admits that the Legitimacy of the CCP Ruling Position Is in Danger

On October 28, 2012, China Gate reprinted an article from Hong Kong’s Trends Magazine titled “Xi Jinping Admits, in a Secret Meeting, that the Crumbling Legitimacy of the CCP’s Governance Has Set off Alarm Bells.”

According to Hong Kong’s Trends Magazine, at a secret meeting, incoming CCP Chairman Xi Jinping again admitted that the CCP faces a fatal crisis. On September 26, 2012, at the 41st enlarged meeting of the 17th CCP Politiburo Standing Committee, Xi Jinping gave preparatory comments about the 18th National Congress and its agenda, putting forward 5 key issues. Xi asked, "Why is there so much tension between the people and the CCP?" and "Why is the people’s distrust of the Party growing?” He also pointed out that the CCP’s legitimacy in governance is crumbling, setting off alarm bells to all.  In May, Xi Jinping talked about the collapse of the CCP. At that time, the Chinese Communist Party’s own investigation showed that 90% of the family members of CCP Central Committee Officials have emigrated overseas.

Source: China Gate, October 28, 2012
http://www.wenxuecity.com/news/2012/10/28/2051895.html

Apple Daily: Wen Jiabao May Publicize His Family’s Assets

On October 28, 2012, China Gate reprinted an article from Apple Daily (the original article is only available to Apply Daily subscribers) titled “It is Said that Wen Jiabao Will Publicize His Family’s Property and Assets.” Recently, a New York Times article alleged that Wen’s relatives had illegally accumulated a fortune amounting to US$2.7 billion. Two lawyers responded on behalf of Wen’s family members and denied the allegations.

If Wen does make information about his family members’ property and assets available to the public, he will be the first CCP national level leader, since the establishment of the People’s Republic of China, to dare to let the public know about his family’s assets. Such an action may cause a chain of reaction among the CCP leadership community. It is not known at this time whether Wen will receive his colleague’s consent to move forward.

Source: Apple Daily, October 28, 2012
http://www.wenxuecity.com/news/2012/10/28/2052290.html
http://hk.apple.nextmedia.com/international/art/20121028/18050776