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China’s National Security Commission in Charge of both Domestic and Foreign Security Issues

According to China’s National Security Research Report (2014) released on May 6, 2014, China’s new National Security Commission is the highest decision making body on national security. It is also a chamber and a coordinating agency in charge of both domestic and foreign security issues. It takes responsibility for all of the following:

1)    The development and implementation of China’s national security strategy: As the scope of national security is no longer confined to military issues, the national security strategy will be developed in macro and overall perspectives

2)    The development of New National Security Law: China’s existing national security law includes counter-espionage laws, but that is too narrow. China’s new national security legislation should encompass military, political, diplomatic, economic, cultural, science and technology, information, ecology, intelligence, and other areas.

3)    The development of National Security Policies: It should develop policies on how to deal with major domestic and foreign security crises and emergencies, how to solve social conflicts, how to combat the “three forces” (terrorists, ethnic separatists, and religious extremists) and more.

4)    The study and resolution of Major National Security Problems: The National Security Commission is an inter-departmental coordination mechanism at the highest decision-making power. It involves public security, national security, military armies, police; diplomatic, transportation, economic, and intelligence departments, as well as the Foreign Affairs Office, the State Council Information Office and Hong Kong, Macao, Taiwan’s related offices.  

Source: China News, May 6, 2014
http://www.chinanews.com/gn/2014/05-06/6137496.shtml

CASS: China Exaggerated 2012-2013 Export Numbers

The well-known Chinese news website Sina Finance recently reported that the CASS (Chinese Academy of Social Sciences) Institute of World Economy and Politics released a research report in which it examined China’s export statistics. The CASS research revealed that the actual export growth in 2012-2013 was 4 percent instead of the “official” 7.9 percent. The research found that China’s actual export scale was often miscalculated because of the impact of two main factors: (1) The Export-then-Import factor: After cargo was "exported," it immediately got “imported,” so that there was no real export; (2) The Fake Export factor: The exporter incorrectly reported a higher number. The Export-then-Import approach was often used to “cook” export statistics to those preferred by government officials; the 2012-2013 numbers reached US$157.3 billion. The purpose of the Fake Export approach was typically to collect more export tax rebates or to claim higher foreign investments. The number for 2012-2013 was estimated to fall between US$163.9 billion and US$244.6 billion. In the year 2013, China’s total cargo imports and exports surpassed the United States enabling it to become the number one cargo trader in the world.
Source: Sina Finance, April 28, 2014
http://finance.sina.com.cn/china/20140428/170918949225.shtml

China Review News Commentary on the Challenges that the Chinese Communist Party Faces

China Review News carried a commentary on the challenges that the Chinese Communist Party faces. According to the commentary, the most important issue that the Party faces is how the Party can develop as the ruling Party guided by Marxist ideology and how the Party can sustain its long term power and governing capability. The commentary listed a number of crises that the Party faces. One is the test of the Party’s ability to govern, as well as the challenge to the Party’s legitimacy to rule. Other issues include that the public lacks channels for participating in politics. The mechanism of the current market economy cannot effectively constrain the alliance between power and money. This has caused the central economic policy to be blocked when carried down to the district. A number of social ideologies collide with each other. The process of educating people on the core value system needs to be further developed and strengthened. Some Party cadres ideals and beliefs are shaky. The Party is facing a crisis in managing social crises, while social uprisings continue to increase. Finally, social distrust is emerging more and more frequently.

Source: China Review News, April 27, 2014
http://hk.crntt.com/doc/1031/4/7/9/103147969.html?coluid=151&kindid=11513&docid=103147969&mdate=0427001232

Qiushi: China Has Achieved a Decisive Success Following Its Own Path

Qiushi published a commentary on the failure of the West’s market fundamentalism and democratic fundamentalism and the success China has had following its own path. 

According to the commentary, the West, particularly the United States, has been persistent in pushing for its own political system based on market fundamentalism and democratic fundamentalism. However, the effect seems to be getting worse and color revolutions have completely faded as Ukraine is in the middle of separatist unrest. 
On the other hand, “With the further rise of China, the whole world will reflect more on the problems caused by the Western model, the chaos and even disaster, especially the absurdity of ‘"market fundamentalism’ and ‘democratic fundamentalism.’ China took its own path due to its unique cultural traditions, historical destiny, and national conditions. These have determined the future direction of China. China has achieved a decisive success in exploring its own path of development.” 
Source: Qiushi, April 28, 2014 
http://www.qstheory.cn/zxdk/2014/201409/201404/t20140428_344301.htm

People’s Forum: Public Authority Wrongly Transformed

After conducting a survey, People’s Forum, a sub-site of People’s Daily Online, commented on how the public authority in China has undergone a transformation in the wrong direction. The article stated that, from looking at the publicly exposed official corruption cases, it is clear that the public authority has gotten into the wrong hands:

The authority belonging to the public went into the hands of a department (a smaller group). The authority under the control of the department went into the hands of an individual (mainly the number one leader). The authority under the control of the individual went into the hands of his family.

According to the People’s Forum, 68.8 percent of the people surveyed thought that the public authority has been severely abused. Over 60 percent thought that, in China, there is widespread nepotism at the grass roots level. Over half of those surveyed thought that the county official’s power abuse was the most severe abuse. Over half thought that allowing an official’s family to control power was more damaging than other type of power transformation.

Source: People’s Daily Online, April 21, 2014
http://theory.people.com.cn/n/2014/0421/c40531-24922464.html

Xinhua: State Council Announced New Policies on Infrastructure Projects

Xinhua recently reported on an announcement that Chinese Premier Li Keqiang made at the State Council Executive Meeting. Li stated that the central government has decided to implement new policies allowing private capital to enter some markets involving the construction of infrastructure. These markets include transportation infrastructure like railways and ports, information technology infrastructure, clean energy infrastructure like hydropower, wind power and photovoltaic power generation, traditional energy infrastructure like oil and gas pipe networks, coal and petrochemical bases. The first round of this operation consists of eighty projects, which welcome private investments. A second round is being prepared to open up markets in oil and gas exploration, public utilities, water conservation and airports. The Executive Meeting also discussed the steps in the coming days to push related new laws and government monitoring regulations to ensure that the processes run smoothly.
Source: Xinhua, April 23, 2014
http://news.xinhuanet.com/politics/2014-04/23/c_1110380121.htm

Qiushi Warns that Information and Ideological Warfare May Disintegrate the State

Qiushi, a journal of the Central Committee of the Communist Party of China, published an article on information and ideological warfare becoming an urgent issue in national defense. 

The article stated that, for a long time, United States has used culture penetration as a highly militant, subversive, and destructive element of its national strategy. Its dominance on the Internet is much more overwhelming than its nuclear and conventional military advantages. Of the 13 root servers in the world, 10 are located in the United States. Also located in the United States are the largest search engine (Google), the largest portal (Yahoo), the largest online video site (YouTube), the largest SMS platform (Twitter) and the largest social media (Facebook). 
The article further stated that in China, some web portals have become anti-Party and anti-government “independent kingdoms,” while others use weibo to voice different opinions and comments and established negative “forums” to oppose the State’s media. For example, in a heated online debate launched by a few patriotic figures against online VIPs who have complex backgrounds and engage in rumor mongering, “almost none of the traditional main stream media and their websites or weibo even echoed any support [for the patriotic side].” 
The article warned that “the all-time information and ideological warfare using the pen, the keyboard, and coins can deflate the morale of the entire nation, leading to the disintegration of the State.” 
Source: Qiushi, April 23, 2014 http://www.qstheory.cn/gf/jsll/201404/t20140423_343027.htm

Outlook on National Security Commission’s First Meeting

Outlook Weekly published an article commenting on the first meeting of the National Security Commission which took place on April 15, 2014. Xi Jinping chaired the committee meeting, with Li Keqiang and Zhang Dejiang as deputies. The Commission was established in November 2013, with the responsibility to oversee all security matters that China faces.

The article stated that, in his speech at the meeting, Xi Jinping presented two new ideas:
1. He raised the “overall national security concept” and the “national security path with Chinese characteristics” for the first time. The “overall national security concept” is bigger than the previous security concepts. It encompasses the people’s safety, political security, economic security, as well as military, cultural, and social security.

2. He emphasized the concept of five “both’s": both external security issues and internal security issues, both the land security issue and the people’s safety issue, both traditional security issues and non-traditional security issues, both the (economic) development issue and the security issue, and both China’s own security issues and common security issues (with other countries).

Source: Outlook Online, April 21, 2014
http://www.lwgcw.com/NewsShow.aspx?newsId=35078