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China Review News: Digesting the Twelfth Five-Year Plan

A China Review News article on October 24, 2010, reports that China’s Twelfth Five-Year Plan focuses on “transitioning.” It describes China’s current economy as having an imbalance between domestic and foreign demand, and expects this imbalance to reverse, that is, for domestic demand to rise, accompanied by a fall in foreign demand. The Plan targets a change from an economy featuring low-cost manufacturing to one with high value-added production.

The article lists five potential changes for the coming five years: 1. Economic growth decelerates and local government’s “GDP fever” pursuit cools down, as the eight percent GDP growth rate is no longer Beijing’s highest priority. 2. The domestic market is to expand, especially in the luxury goods and culture-related industries. 3. Rural areas are to see major development. 4. Economic prosperity is to shift from export-oriented coastal provinces to the central and the western provinces. 5. China is to develop new energy and “green” energy.

Source: China Review News, October 24, 2010
http://gb.chinareviewnews.com/doc/1014/8/2/6/101482660.html?coluid=53&kindid=0&docid=101482660&mdate=1024081019

Seven Institutions Designated for Training Party Officials

In 2010, over 2,000 senior officials from 15 Party departments and government ministries will complete the annual mandatory 40 credit hour training at the National School of Administration, the Party School of the Chinese Communist Party, located in Beijing University, Qinghua University, Renmin University, and Beijing Normal University.
 

Earlier, a quarter of the special topic classes were cancelled due to lack of students and 76% of the students dropped out during the lectures. As of October, the National School of Administration had held 6 special topic classes and 8 lectures with 642 senior officials attending.

Source: Guangming Daily, October 19, 2010
http://news.gmw.cn/2010-10/19/content_1319398.htm

Hong Kong Civil Servants Receive Training in Chinese National Affairs

Denise Yue, the Secretary for Civil Service (SCS) of the Hong Kong government, stated that in 2011 about 5,800 civil servants will receive training in Chinese national affairs, an increase from 2,700 in 2010.

Modules on national affairs will be added to the training for new civil servants. Additional spaces will be available for mid-level managers to study national affairs at Zhongshan University in Guangzhou and Shenzhen Graduate School of Beijing University in Shenzhen. These managers may also be sent to Mainland China for training purposes. The SCS of the China National School of Administration will establish a dedicated new program at that school to cover National Affairs, specifically for heads of departments.

Source: Xinhua, October 18, 2010
http://news.xinhuanet.com/politics/2010-10/18/c_12673322.htm

Hunan Releases Draft of Emergency Response Plan

The Hunan provincial government released a draft of its emergency response plan. It is touted as the first in China. The plan includes details on how to deal with natural disasters, accidents, and social unrest. It provides the authority needed to requisition supplies from private citizens if they are needed for emergencies. The draft plan does not provide details on how, in case of requisition, private citizens will be compensated. The draft plan divides the response into four levels: normal, larger, major, and highest emergency responses. Responsibility for implementation of the first three levels is with the county, municipal, and provincial governments. The State Council holds responsibility for the highest response level.

Source: Xinhua, October 19, 2010
http://news.xinhuanet.com/legal/2010-10/19/c_12674507.htm

Official Report from the CCP’s Fifth Plenary Session of the 17th Central Committee

Xinhua published an Official Report from the CCP’s Fifth Plenary Session of the 17th Central Committee, which was held from October 15 to 18 in Beijing. The conference members listened to and discussed the CCP’s work report presented by Hu Jintao. The conference passed the twelfth five-year plan for the national economy and social development.

The Report stressed that “in current China, (we should) stick to the essential requirement that ‘development is of overriding importance.’” It listed many economic development strategies. It stressed the importance of developing culture and increasing China’s cultural soft power. It also stressed that the CCP’s leadership is the fundamental guarantee for future development.

Xi Jinping was elected to the position of Vice Chairman of the CCP’s Central Military Commission. [Ed: This is widely viewed as a step in preparation for Xi’s taking over the CCP’s top leadership position in 2012 when Hu Jintao’s term is over.]

Source: Xinhua, October 18, 2010
http://news.xinhuanet.com/politics/2010-10/18/c_12673082.htm

China’s Twelfth Five-Year Plan Focuses on Seven New Industries

China News Service reported that the newly passed Twelfth Five-Year Plan delineated seven new industries for investment: new energy, new energy for automobiles, saving energy and protecting the environment, next generation IT (focusing on the Internet, cloud computing, and GIS), bio-technology, high-end equipment manufacturing (e.g. aerospace, ocean engineering, and satellites), and new materials.

Source: China News Service, October 18, 2010
http://www.chinanews.com.cn/stock/2010/10-18/2595370.shtml

People’s Daily: The U.S. Dollar Is the Culprit in the Currency War

Xiangyang Li, the director of the Asia Pacific Institute of the Chinese Academy of Social Sciences, published a commentary article in the People’s Daily Overseas Edition on the ongoing global currency depreciation war. He said that the U.S. dollar is the culprit in the currency exchange war.

While the U.S. dollar appears to be market driven, in reality, there is a strong element of active devaluation. He suggested that international society should be aware of the phenomenon. Li believes that, in the long run, the U.S. dollar’s large scale depreciation will help the U.S. transfer its debt. If the international financial crisis has brought about the nationalization of private debt, then the United States urgently needs to internationalize its debt. Even though the U.S. may not admit its intention to convert its debt, it cannot avoid such a consequence.

Source: People’s Daily, October 14, 2010
http://opinion.people.com.cn/BIG5/40604/12946061.html

The Party Establishes its Leadership in China-Owned Enterprises and China-Foreign Joint-Ventures

Study Times, a newspaper owned by the press agency of the Party School under the Chinese Communist Party Central Committee, published an article on October 04, 2010, regarding the establishment of the Chinese Communist Party’s core leadership position in enterprises in China.

The article also talked about establishing the party’s position in China-Foreign joint ventures.  Following the CCP’s constitution, China’s “Company Law” and “State-Owned Assets Law" allow the Party’s work to run smoothly and effectively in China-Foreign joint ventures.

The article reminds the reader, “Always adhere to the unwavering principle of the Chinese Communist Party’s control over managers, administrators and people.”

Source: Study Times, October 04, 2010
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2010/10/04/08/08_38.htm