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Briefings - 806. page

CRN: Chinese Economy Faces Six Major Variables

China Review News (CRN) recently published an analysis that discussed the new challenges the Chinese economy will face in 2013. The author expressed the belief that the economy is having a weak rebound, which will be affected by six primary variables: (1) How strong will the stimulation policies to be applied be and how long will they be sustained? (2) How tight will the government’s control of the housing market be? (3) How will the “shadow banks” (non-government sponsored private loan providers) be monitored and regulated? (4) How high will the exit strategy pressure of the stimulation policies be in the second half of the year? (5) What impact will the completion of the U.S. QE “Quantitative Easing” policies have on China? (6) What impact will Japanese Prime Minister Shinzo Abe’s new policies (inflation, deficit, and depreciation) have? The article concluded that the Chinese recovery will not be a smooth one.
Source: China Review News, January 24, 2013
http://www.zhgpl.com/doc/1024/1/4/6/102414661.html?coluid=53&kindid=0&docid=102414661&mdate=0124072005

Woman Petitioner Detained in a Mortuary for 3 Years; Now a Paraplegic

Departments of the local government detained Chen Qingxia, a resident of Yichun City in Heilongjiang Province, in an abandoned mortuary for 3 years because she persisted in petitioning the higher level government. After her story was exposed on January 24, 2013, people throughout society discussed it. 

Reporters from China Youth Daily learned that the room where Chen had been detained was guarded 24/7. A surveillance camera was installed on one side of the door and the rear window was fitted with iron railings. The guards told the reporter that these bungalows were part of a former mortuary used for the storage of bodies and wreaths. 
Chen Qingxia was a paraplegic, wearing diapers all the time. According to Chen herself, the condition came about because the beatings at the detention center injured her legs. 
An eyewitness told reporters that many people had seen Chen Qingxia lying in the rain in front of the detention center. Now however, few people dare to come forward to testify. “Her issue is quite serious. However, if neighbors or friends get involved in her matter, the Public Security Bureau will come after them, so nobody dares to do anything." 
Source: China Youth Daily, January 25, 2013 
http://zqb.cyol.com/html/2013-01/25/nw.D110000zgqnb_20130125_1-03.htm

Censors in China Cut 40 Minutes from American Movie Cloud Atlas

Chinese authorities cut 40 minutes out of the American movie Cloud Atlas to be released in China on January 31, 2013. “Although in the Mainland version, the censors cut 40 minutes off as compared to the international version, the Mainland version of Cloud Atlas will not cause difficulties or problems for viewers. … The censors cut lines of words ruthlessly from the Mainland version. Most of the footage chopped off consists of dialogue.” Love scenes were also removed by the Chinese film censors.

[Editor’s note: Explicit love scenes, including between two same sex characters, were cut. Scenes of graphic violence, including a fatal gunshot and a man having his throat slit, remained. The film’s directors were not involved in the cuts.]  
Source: Jiefang Daily reprinted by Nanjing Daily, January 23, 2013
http://www.njdaily.cn/2013/0123/310120.shtml

Local Officials Support Disclosure of Personal Assets

Recently, Guangzhou local government officials announced their support for calls for government officials to make a public disclosure of their personal assets. Fan Songqing, a Guangzhou Committee member of the Chinese People’s Political Consultative Conference introduced a bill that would require public disclosure of personal assets. Fan was followed by Guangzhou Mayor Chen Jianhua, who announced at a press conference that, if financial disclosure is required, he will take the lead to disclose his personal assets.

Sources:
Xinhua, January 22, 2012
http://news.xinhuanet.com/local/2013-01/22/c_124265245.htm
Xinhua, January 21, 2012
http://news.xinhuanet.com/local/2013-01/21/c_124255691.htm
People’s Daily, January 24, 2012
http://politics.people.com.cn/n/2013/0124/c14562-20316254.html

The Growth of China’s Tax Revenues Has Dropped to a Three-Year Low

China’s Ministry of Finance today released a report analysing the structural growth of tax revenue in 2012. The report revealed that the total national tax revenue in 2012 was 10.060088 trillion yuan, a year-on-year growth of 12.1 percent. The 2012 tax revenue growth was the lowest rate for nearly three years. Growth was 10.5 and 10.9 percentage points lower than in 2011 and 2010, respectively. 

An analysis by the Ministry of Finance suggested that the significant drop in 2012 tax revenue growth was due to a combination of factors including a slowdown in economic growth, the deceleration of enterprise profits, weak import growth, and the implementation of structural tax cuts. 
Source: People’s Daily, January 24, 2013 
http://theory.people.com.cn/n/2013/0124/c49154-20311508.html

Xinhua: Jiang Zemin’s Rank in Top Leader List Will Be Lowered

Xinhua published a short news article with the title “Comrade Jiang Zemin Requested that the Party Central Committee List His Name among Other Senior (Retired) Leaders in the Party and State Leaders of that Rank.” The entire news article read, “A Reporter obtained information from a relevant party that, after the 18th National Party Congress, comrade Jiang Zemin made a request to the Party Central Committee that, from now on, his name should be listed among other senior (retired) leaders in the Party and state leaders of that rank. This reflects a Communist Party member’s integrity and open-mindedness.”

[Editor’s Note:
1. In China, the ranking order of top leaders is extremely important. It shows who has more power.
2. From this short news item, it is hard to tell if Jiang indeed made the request. One thing is likely to happen: Jiang’s ranking order will be lowered.]

Source: Xinhua, January 23, 2013
http://news.xinhuanet.com/politics/2013-01/23/c_124266293.htm

China Economic: The Core of Urbanization Is to Urbanize People

China Economic published a commentary stating that China has identified urbanization as a major solution for expanding domestic demand and enterprise development. The article argued, however, that the core of urbanization in China is to “urbanize people,” or to make farmers the same as or similar to city residents. The article quoted three scholars’ opinions. They argued that 50 percent of the total population in China now lives in cities, but only 35 percent of the total population have city Hukou – China’s unique household registration system which identifies a person according to his or her original area (e.g. from Beijing, Shanghai, or a rural village). This means that of the 700 million people who are identified as urban dwellers, 220 million of them are still labeled as farmers. These farmers are mainly the “immigrant farmers” and cannot enjoy the same social benefits, such as social security, employment, land ownership, housing, education, and so on, as city residents.

Source: China Economic Net, January 18, 2013
http://paper.ce.cn/jjrb/html/2013-01/18/content_141406.htm

International Iron Ore Price Surge Hurts China’s Steel Industry

On January 19, 2012, China Review News published an article titled “Another Heavy Blow Hits China’s Steel Enterprises.” The international iron ore producers have been raising iron ore prices rapidly since 2009. According to the article, as the New Year started, iron ore producers set off a new wave of price increases, which cannot be explained by the principle of supply and demand or by macroeconomic conditions.

 

The article concluded, “China has been the number one steel producer in the world. We should not have lost our authority in the market. The problem is that our steel enterprises should not only concentrate on making money from downstream companies, the other Chinese companies, through increasing steel prices. We must think more about how to reduce the profits that the upstream enterprises, the foreign iron ore producers, are making.”

 

Source: China Review News, January 19, 2012

http://www.zhgpl.com/crn-webapp/doc/docDetailCreate.jsp?coluid=53&kindid=0&docid=102408133&mdate=0119075256