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Monthly Archives: December 2014

China’s Two Voices: Xi Jinping Happily Chatted and Shook Hands with Santa Claus on Christmas Day

On December 25, 2015, a Chinese blog named Liyuanfans posted 3 photos of Xi Jinping with Santa Claus. Xi Jinping is the present General Secretary of the Communist Party of China, the President of the People’s Republic of China, and the Chairman of the Central Military. Liyuan is the first name of Xi’s wife. The blog of Liyuanfans regularly posts photos and short messages about the couple. The 3 photos showed that Xi was accepting a gift from Santa Claus, sitting next to Santa Claus with Santa’s hand on Xi’s shoulder, and shaking hands beamingly with Santa Claus.

The above message is contradictory to what happened in some schools and universities in China recently. On December 22, 2015, the Zhejiang Board of Education prohibited elementary, middle, and high schools from organizing Christmas events. On Christmas Eve, Northwestern University in China forbade students from spending Christmas Eve by themselves. [Editor’s note: A previous Chinascope briefing said of Northwestern University: "Some netizens posted that, on Christmas Eve, all of the students were organized to watch videos inside the classrooms. The videos were related to traditional Chinese culture. The teachers stood guard at the classrooms. It was said that whoever celebrated Christmas would be disciplined."]

Secret China questioned, “Why are there two voices within the Communist Party?” 

Sources: Blog of Liyuanfans, December 25, 2015.  
http://www.weibo.com/liyuanfans

Chinascope, Some Chinese Schools Prohibited Students from Celebrating Christmans.
Briefings | | |   Government/Politics

China Unicom Top Executives under Investigation

On December 30, 2014, Caixin.com, a website from Mainland China, released a news report on the investigation (arrests) of two high-ranking executives at China United Network Communications Group Co., Ltd. (or China Unicom). According to Epoch Times, China Unicom is associated with Jiang Mianheng, the son of China’s former paramount leader Jiang Zemin.

Sources: Caixin, December 30, 2014. 
http://companies.caixin.com/2014-12-30/100769556.html 

Epoch Times, December 31, 2014.
http://www.epochtimes.com/gb/14/12/31/n4330649.htm
Briefings | | |   Government/Politics

Xi Jinping’s Instructions on Party Build-up in Universities

The twenty-third conference on developing the Party at national colleges and universities was held in Beijing on December 28 and December 29. General Secretary of the Chinese Communist Party Xi Jinping gave instructions that colleges and universities should shoulder the important tasks of studying and promoting Marxism and of training the developers and successors of socialism with Chinese characteristics. Xi emphasized that strengthening the Communist Party’s leadership on colleges and universities and strengthening and improving the Party’s development at colleges and universities is the fundamental guarantee that socialist colleges and universities with Chinese characteristics will run well.
Xi pointed out those factors that make a good socialist university with Chinese characteristics. One has to adhere to the principle of emphasizing moral character by integrating the education and practice of socialist core values into the whole process of teaching; to strengthen ideological guidance and firmly lead the ideological work at the universities; to uphold and improve the system in which the President is accountable under the leadership of the Party committee; to continue to reform and improve the institutions at universities; to advance the comprehensive development of the Party; and to play an effective role in grassroots organizations and an exemplary role of pioneer model Communist Party member. Xi gave the instruction that Party committees at all levels and the authorities in charge of ideological propaganda, personnel, and education should strengthen the leadership and guidance on the development of the Party at colleges and universities, adhere to the Party’s education policy, adhere to the socialist direction of education, strengthen and improve ideological and political work, and ensure a thorough and strict implementation of the Party’s discipline.
Source: Xinhua, December 29, 2014
Briefings | | |   Government/Politics

China News: South Korea, U.S. and Japan to Share Intelligence on North Korea

China News recently reported that an official (who would prefer to remain anonymous) of the South Korean Defense Ministry advised that the deputy defense ministers of South Korea, the United States, and Japan planned to sign a memorandum of understanding on sharing intelligence involving North Korea, especially on military topics like nuclear plans and guided missiles. The memorandum was set to be signed on December 29. The South Korean side emphasized that the intelligence sharing between South Korea and Japan will be communicated indirectly via the United States as the middle man. The Memorandum is not considered legally binding and does not require approval by the legislative branches of the three countries. 
Source: China News, December 27, 2014
Briefings | | |   Geo-Strategic Trend

Russian Oil Exported to China at 50 Percent Higher Price

Well-known Chinese news site Sina recently reported that, based on the data Bloomberg obtained from the China General Administration of Customs, the volume of Russian oil exported to China increased by 65 percent in November, reaching a record high monthly volume of 3.31 million tons. According to Bloomberg, the average price of these November exports was at US$90 per barrel. However, given the sharp decline in the oil price on the global market, the current standard for oil prices is below US$60. The Russian State Duma recently passed laws to cut the oil export tax. At a press conference earlier, Russian President Putin suggested that the Russian economy must adjust to the reality of oil prices staying at US$40. According to Chinese Customs records, China’s imports from the largest OPEC oil exporter, Saudi Arabia, were in their second consecutive month of decline, which is the equivalent of a 5.9 percent decline year-over-year. The Russian Ministry of Energy recently mentioned that, during January to September, Russian oil exports to China increased by 45 percent year-over-year. 
Source: Sina, December 24, 2014
Briefings | | |   Geo-Strategic Trend

Global Times: Qualcomm May be Fined US$1 Billion

Global Times recently reported that the National Reform and Development Commission (NDRC) has been conducting an antitrust investigation against U.S. chip maker Qualcomm, who may be fined US$1 billion for abuse of its monopoly power. NDRC accused Qualcomm of price gouging and misusing its standard-setting power in the wireless communications market. According to Chinese antitrust laws, NDRC can fine the company in the range of 1 to 10 percent of its annual sales amount. As the largest wireless communications chip maker in the world, Qualcomm’s fiscal year 2013 sales income in the Chinese market was US$12.3 billion, which was half of its global sales total. China is in the process of upgrading its nationwide wireless network infrastructure to 4G technology, which requires Qualcomm-patented chips that are widely used in smartphones. Some analysts suggested that the Chinese antitrust move had the intention of influencing the negotiations on licensing the Qualcomm patents. 
Source: Global Times, December 26, 2014
Briefings | | |   Geo-Strategic Trend

CASS Blue Paper: Housing Prices Are the No. One Social Problem

On December 24, 2014, the China Academy of Social Sciences (CASS) published its Social Blue Paper in which it concluded that, of all the major social problems, housing prices, food and drug safety, the cost of living, unemployment, and income disparity are the top five social problems in China today. 

According to the Blue Paper, people are increasingly worried about housing prices. Since 2003, the price of housing has been one of the top three worries. In 2009 and 2014 it topped the list. A considerable part of the population is gradually being marginalized. The different measures that the authorities have taken have not fundamentally changed the existing status of these social problems. The Blue Paper said that these problems remain the most important issues for improving Chinese people’s quality of life and for improving their living standards. 
Source: China News Service, December 24, 2014 
Briefings | | |   Social Stability

CASS Predicts Soft Landing in the Housing Market in 2015

On December 26, 2014, the China Academy of Social Sciences (CASS) published its Housing Green Paper, the China Housing Development Report (2014-2015). The report made a number of predictions: that the restrictions on house purchases will be eliminated in 2015; that, with upcoming government incentives, there is hope that the housing market will have a soft landing; and that half of the developers will no longer be in business. 

The report predicted that, in the next couple of years, the housing market will continue to decline. In the last 5 cities (Beijing, Shanghai, Guangzhou, Shenzhen and Sanya) that currently have restrictions on the number of houses one may be allowed to purchase, these restrictions will be removed within a year. Ni Pengfei from CASS commented that once the restrictions are eliminated, the assumption that it is a seller’s market and the myth of ever increasing housing prices will be completely shattered. 
The report predicted that the central and local governments will promulgate policies to facilitate a soft landing in the housing market. Such policies may include removing any restrictions on how many houses one can buy, loosening the lending requirement for those who own two or more houses, and reducing transfer fees and personal income taxes. 
Ni Pengfei held that, given the low returns on housing investment and the surplus in the housing market, government incentives would not stop the decline of the housing market. The report expressed the belief that, with the surplus of houses on the market and the surplus of developers’ capabilities, more than half of future developers will change their line of business or otherwise disappear from the market. 
Source: China News Service reprinted by Xinhua, December 26, 2014 

Briefings | | |   Economy/Resources