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By 2015, China Will Import More Than 60 Percent of Its Oil

Beijing Times reported that on November 27, 2011, the China Energy Research Society published the “2011 China Energy Report.” The report indicated that due to a predicted economic growth rate of 9 percent per annum over the next five years, even though the rate of growth of energy consumption will decrease in the next five years, and even though China has a stable domestic oil supply, China’s oil imports will continue to increase. According to the 2010 China Energy Report, China imported 54.8 percent of its oil in 2010. The 2011 report expects the figure will increase to 60% by 2015.  The rate of growth in oil consumption over the next five years is expected to be 4 percent, down from 5.15 percent from 1978 to 2010.

Source: People’s Daily, November 28, 2011
http://energy.people.com.cn/GB/16408967.html

State Media on the Importance of Culture Reform

[Editor’s Note: After the Sixth Plenary Session of the 17th Central Committee of the Chinese Communist Party (CCP) passed a resolution on reforming China’s culture system, China’s official media published a series of articles discussing the significance of reforming the culture system. The following are excerpts from two commentaries published in Outlook Weekly, a publication under Xinhua and People’s Daily.]

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Communication University of China Establishes Center for the Popularization of Marxism

On November 29, 2011, the Communication University of China held an opening ceremony to formally announce the establishment of the Center for Marxist Communication and Popularization. A forum on “Marxist Communication and Popularization” was held at the same time. Government leaders from the Propaganda Ministry, the State Administration of Radio, Film, and Television, and over 70 scholars from prestigious universities and institutions such as Beijing University, Tsinghua University, and the Chinese Academy of Social Sciences all attended the ceremony. The center is the first of its kind to specifically study Marxist communication and popularization in order to promote the development, advancement, and popularization of Marxism. Another purpose is to implement the policy of the Chinese Communist Party’s 17th Congress, the development and promotion of Chinese socialist culture.

Source: Huanqiu (Global Times), November 30, 2011
http://china.huanqiu.com/hot/2011-11/2222143.html

Red Flag Manuscript: the Non-State Sector Needs the Party’s Presence

A Red Flag Manuscript article concluded that, in order to promote the sound and rapid development of the non-State sector of the economy, an essential condition is to strengthen the Party’s development in non-State enterprises. The article expressed the belief, “It is futile to rely on corporate governance; it is the Party organization in the enterprise that plays the core political role.” The non-State sector needs many forms of support from the Party in order to grow, while the development and expansion of the Party relies on support from the non-State sector. “This is the root cause for the Party to play a core political role in non-State enterprises.” The synchronized coordination between the Party Committee and the board of directors of the enterprise is the key to Party’s development in the non-State sector.

Source: Red Flag Manuscript reprinted by Qiushi, November 29, 2011
http://www.qstheory.cn/hqwg/2011/201122/201111/t20111129_126337.htm

Guangming: Substantial Increases in Government Spending on Party’ Propaganda

According to Vice Minister of Finance, Zhang Shaochun, China has spent a significant amount of money on the development of culture. Since 2005, the overall government spending on culture, sports, and media has increased at an annual rate of 20.9%, while central government spending has grown at the rate of 25.4% annually. Money has been used for museums, memorials, and national centers for education in patriotism, all of which are free to the public. The government will continue to fund the national publishing foundation so it can contribute to the widespread publication of Marxist and Leninist works, youth publications, and all those issues that are a national priority. Zhang said that the Party’s newspapers, journals, radio programs, and TV stations will continue to be funded through “government procurement” to enhance their vitality.

Source: Guangming Daily, November 26, 2011
http://culture.gmw.cn/2011-11/26/content_3049558.htm

The Lifespan of China’s Private Enterprises Is 2.9 Years

A forum was held in Guangzhou on November 28, 2011, on safeguarding the rights of China’s enterprises. At the forum, Professor Li Jianwei from the China University of Political Science and Law revealed that private enterprises in China have an average lifespan of only 2.9 years. Li said that the reason for private enterprises’ short lifespan is that these enterprises face various legal risks. Compared to national enterprises, private enterprises are in an inferior position.

Source: Guangzhou Daily, November 28, 2011
http://www.ce.cn/xwzx/gnsz/gdxw/201111/28/t20111128_22871174.shtml

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

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