Chinascope – Page 1003

Energy and Mining – the Top Area of China’s State-Driven Foreign Direct Investment

According to the statistics of China’s Ministry of Commerce, in 2010, China’s foreign direct investment (FDI) amounted to a historic $68.81 billion. With 5.2% of the global total FDI, China ranked fifth highest in the world. Most of the investment flows to six sectors: leasing, business services, and finance; wholesale and retail; energy and mining; transportation, storage, and postal services; and manufacturing.

The state-own enterprises accounted for 66.2% of the non-financial FDI stock, down three percent from the 2009 figure. Of these, the enterprises and units under the central government reached $42.44 billion, accounting for 70.5% of the flow. Pei Changhong, director of the Economic Institute under the Chinese Academy of Social Sciences, believes that China’s overseas investments are, to a large extent. driven by national policy. The system of relevant policies and investment services has not been fully established. An example is the recent losses suffered in Libya, which occurred because of a lack of investment insurance policies.

In terms of targeted markets, China’s FDI has a high concentration in Asia, especially Hong Kong, and in Latin America. The footprint in developed economies such as North America and Europe is still low. The energy and mining sector remains the top area of investment.

Source: China Economic Weekly, November 29, 2011
http://www.chinanews.com/cj/2011/11-29/3493517.shtml

Briefings | | December 1, 2011 | Economy/Resources

Xinhua: What should China do about TPP?

A Xinhua article discussed China’s options regarding the Trans-Pacific Partnership (TPP). According to the article, on the one hand, in urging the TPP countries to increase their labor costs, the U.S. is attempting to increase the competitiveness of its manufacturing. On the other, it is pushing the TPP countries to purchase U.S. products so as to revive the U.S. manufacturing industry. What should China do? “We should be clear that without China, the TPP cannot represent the Asia-Pacific region and the U.S. will receive no meaningful benefits. We have joined the WTO and have the FTA in place. Therefore, we will not lose anything if we do not join the TPP. However, without China, the TPP, not China, will be marginalized in international trade.”

Source: Xinhua reprinted by Guangming, November 29, 2011
http://big5.gmw.cn/g2b/world.gmw.cn/2011-11/29/content_3064085.htm

Briefings | | December 1, 2011 | US-China Relations

Study Times: Integrate Socialist Core Values into Culture Products and Culture Services

The Sixth Plenary Session of the CCP 17th Central Committee set the establishment of a country with a powerful socialist culture as a strategic target. On November 28, 2011, Study Times, a journal of the Party School of the Central Committee of the Chinese Communist Party, published an article stating that “such a long-term strategic plan reflects the Party Central Committee’s cultural awakening, its becoming more and more active in cultural development, and its increasing self-confidence.”

The article repeatedly emphasized the socialist core values. “We must effectively integrate the socialist core values into culture products and culture services. Thus we can expand the global influence of the Chinese culture around the world by taking advantage of the universal acceptance of cultural values and international communication methods.”

Source: Study Times, November 28, 2011
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2011/11/28/01/01_29.htm

Briefings | | November 30, 2011 | Government/Politics

Study Times: What Caused the Collapse of the Former Soviet Union?

On November 28, 2011, Study Times, a journal of the Party School of the Central Committee of the Chinese Communist Party, published an article analyzing what caused the collapse of the former Soviet Union. The writer, Prof. Zuo Fengrong of the Party School, responded to a question as to why neither the Soviet people nor the Soviet Communist Party members stood up to defend the Soviet Union. The professor stated, “The fundamental reason was that the Soviet Communist Party departed from Marxist principles and goals and failed to establish a political system that secured ordinary people’s (social) status.”

He concluded, “Since the people had no right to elect and monitor cadres, they were disconnected from state power. Cadres made all the decisions and the people were just cogs in the gigantic socialist machine. Although the USSR’s Constitution offered the right of citizenship to its citizens in the literal sense, the principle of the citizens’ rights was not implemented until Gorbachev began his reforms. However, the citizens of the Soviet Union did not have long-term training in democracy and did not know how to use their rights, so they became an important force in advancing the nation’s disintegration under Yeltsin’s propaganda.”

Source: Study Times, November 28, 2011
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2011/11/28/02/02_35.htm

Briefings | | November 30, 2011 | Government/Politics

The U.S. Intention in Increasing Its Military Presence in the Asia-Pacific Region

On November 28, 2011, Xinhua News Agency’s Outlook Weekly published an article titled “The U.S. Intention in Increasing Its Military Presence in the Asia-Pacific Region.” According to the article, the U.S. intends to build political and economic partnerships favorable to U.S. interests in the Asia-Pacific region through strong military measures in order to ensure the stability of the U.S. hegemony.

The article stated, “Barack Obama is just like other U.S. presidential candidates in the past who, without exception, also dealt with China in a way calculated to win the votes of the domestic right-wing forces. …. The recent increase of the U.S. military presence in the Asia-Pacific region can also be viewed as an integral part of Obama’s campaign for his presidential re-election.”

Source: Xinhua News Agency’s Outlook Weekly, November 28, 2011
http://lwgcw.net/NewsShow.aspx?newsId=24712

Briefings | | November 30, 2011 | US-China Relations

State Council to Regulate Financial Exchange Markets

China Daily recently republished a report on the State Council’s decision to straighten out the financial and market exchanges that facilitate trade activities in stocks, futures, and other financial products without official approval. The State Council’s decision was distributed in the form of an official document which sets the goal of this campaign as the reduction of national financial risks. It was estimated that hundreds of such exchanges will be impacted or completely closed. In the “decision,” all financial institutes with the word “exchange” in the name will need the central government’s approval or at least government approval at the provincial level. In the past few years, more than 300 exchanges have been established across China, doing business in a number of categories such as precious metals and agricultural products. The government has not established laws to regulate these facilities, so no administrative procedures have been put in place to monitor them.

Source: China Daily, November 26, 2011
http://www2.chinadaily.com.cn/hqcj/lc/2011-11-26/content_4492907.html

Briefings | | November 29, 2011 | Economy/Resources

1.3 Million Take Entry Exam for 18,000 Central Government Positions

Jinghua Daily, a newspaper under People’s Daily, recently reported that the 2012 Entry Exam for Central Government Civil Officials started on November 26, 2011. The exam takes two days. There are around 1.3 million people registered nationally for the exam. The total number of job openings is around 18,000. In Beijing City alone, 2,940 exam sites were established. This year is the first year for all sites in Beijing to be equipped with radio shielding devices. Branches of the Ministry of Industry and Information Technology also sent mobile radio activity monitoring vehicles to fight high-tech cheating techniques. Large construction sites have been closed temporarily during the exam.

Source: Jinghua Daily, November 26, 2011
http://edu.people.com.cn/GB/16399354.html

Briefings | | November 29, 2011 | Government/Politics

China’s Reaction to Trump’s Election Win

Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized