Chinascope – Page 1021

Research Reveals the Poor Performance of China’s State Owned Enterprises

On September 19, 2011, Study Times, the publication of the Party School of the Central Committee of the CCP, published an article about the performance of China’s state-owned enterprises. It was based on a report by the Unirule Institute of Economics, a research institution in Beijing.

From 2001 to 2008, the state-owned and state holding enterprises generated a 7.68% ROE (Return on Equity), while the industrial enterprises above a designated size yielded a 9.22% ROE. Therefore, the performance of the state-owned and state holding enterprises was not good enough. After deducting the costs, government subsidies, and the excess profits due to their being administrative monopolies, it is estimated that, between 2001 and 2008, the true average ROE generated by the state-owned and state holding enterprises was -6.2%.

From 2007 to 2009, the average corporate tax paid by 992 state-owned enterprises was 10%, while the average corporate tax paid by the private enterprises was as high as 24%. In 2008, the employees of the state-owned enterprises received 13.3% more in payments than other companies, which was 12% higher than the average payment level in society. In 2009, the average annual salary of the executive management team of the central government enterprises that were listed on the stock market was 313,000 yuan (US$48,984.5), 37.3% higher than the executive management teams of regional state-owned enterprises and 61% higher than the executive management teams of private enterprises.

Source: Study Times, September 19, 2011
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2011/09/19/12/12_45.htm

Briefings | | September 21, 2011 | Economy/Resources

Beijing News: India’s Involvement in Oil and Gas Development in the South China Sea

Beijing News recently reported that on September 16, 2011, the Vietnamese and Indian governments jointly announced that the two countries will jointly develop oil and gas in the South China Sea. India’s largest state owned oil company, OVL (ONGC Videsh Ltd), has already invested US$225 million on the project. The Chinese Foreign Ministry commented that China is against any country’s involvement (in the South China Sea). The Vietnamese government said it “fully supports” India’s initiative. Earlier there were reports of military co-operation between the two countries as well.

Source: Beijing News, September 18, 2011
http://epaper.bjnews.com.cn/html/2011-09/18/content_277041.htm?div=-1

Briefings | | September 20, 2011 | Geo-Strategic Trend

Study Times: Reform of the Financial System is the Cure for China’s Economy

Study Times, a newspaper of the CCP Central Party School, recently republished an article from Value China on how to rescue the current imbalanced Chinese economy. The article first compared the Chinese financial system with the U.S. financial structure. Then it asserted that (1) the Chinese financial system is a weak link in China’s global positioning as it relies too heavily on manufacturing and (2) the large amount and the rapid growth of China’s foreign exchange reserves are proof of the lack of domestic consumption and international investments. The author believes that the Chinese financial system has a low service level, a lack of mid-to-small range banks, and a lack of local financial markets. Large national banks have monopoly power and they tend not to provide loans to small businesses even though they create a majority of the jobs in China. The lack of official local financial markets has also encouraged the growth of an underground financial market. In conclusion, the article called for “major structural adjustments.”

Source: Study Times, September 9, 2011
http://www.qstheory.cn/jj/jjyj/201109/t20110909_109222.htm

Briefings | | September 20, 2011 | Economy/Resources

CRN: PLA Developed Night Vision Maps

China Review News (CRN) recently reported that the People’s Liberation Army (PLA) has developed night vision maps. Last year, the PLA started searching for practical night vision technology for maps. The University of Lanzhou, the Map Institute of Gansu Province, and the Surveying and Mapping Institute of the PLA General Staff Department jointly worked on the project. The night vision maps emit “cold light” which can only be seen by people nearby; remote enemies cannot see them, even with today’s military night vision equipment. The technology used to print the maps enables them to preserve energy in daylight. They are waterproof, radiation-free, and have good luminous intensity. The material is suitable for mass production.

Source: China Review News, September 12, 2011
http://gb.chinareviewnews.com/doc/1018/3/2/7/101832706.html?coluid=4&kindid=16&docid=101832706&mdate=0912131552

Briefings | | September 20, 2011 | Defense/Military

Using Marxism to Analyze the U.S. Financial Crisis

[Editor’s Note: Qiushi Theory Online republished a Chinese Academy of Social Science (CASS) thesis on applying Marxist theory to analyze the recent global financial crisis. The author is Wang Weiguang, the Vice President of CASS. Wang argued that most analyses of the financial crisis have been done at the surface level; however, to do a scientific analysis to determine the essential cause of the crisis at the system level, one must apply Marxist theory and methodology. Wang praised Marx’s theory of cyclical recessions and the inevitable demise of capitalism. He claimed that China’s socialist market economy can prevent recessions. The following are excerpts from his thesis.] [1]

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Reports | | September 19, 2011 | Report

Qiushi: Why the Chinese Style Socialist System Is Better Than the Western Capitalist System

Qiushi Theory carried an article originally from Beijing Daily that laid out the drawbacks of the capitalist system while listing the positive features of the Chinese style socialist system. It concluded that the socialist system has a stronger vitality and demonstrates significant advantages to the world.”

The article suggested that the capitalist’s over-protect their capitalist interests, private and personal interests result in an over emphasis on the free market, the multi-party system of administration, and personal values. It attributed the economic crisis around the world to “the greed of capital and its lack of control.” It also faulted the capital system because the protection of personal interests results in a lack of ability to bring about a common agreement. “When it comes to making key social, political and economic decisions, capitalism lacks centralized power.” Lastly, according to the article, the capitalist system lacks a long term strategy and consistent growth.

As to the advantages of the Chinese style socialist system, the article noted first that “the common goal is to get rich together.” The various social classes are the consistent driving force for the nation’s development power. Second, the system carries “incomparable advantages in social mobilization and resource collection because Chinese style capitalism adheres to democratic centralism.” Third, the system is reliable and stable with long term goals. Fourth, the system is based on the clear understanding of each developmental stage and is constantly undergoing social reform.

Source: Qiushi Theory September 16, 2011
http://www.qstheory.cn/zxdk/2011/201118/201109/t20110914_110033.htm

Briefings | | September 19, 2011 | Government/Politics

The Party Must Guard against Western Enemy Forces

An article in Qiushi Theory published on September 17, 2011, discussed a seminar that the Organization Department of the Chinese Communist Party Central Committee and the National Party Construction Research Center held prior to July 1, 2011, to memorialize the Party’s 90th anniversary. The seminar included a review of Xi Jinping and Li Yuanchao’s latest speeches. It also covered the following four major topics: the Party’s major achievements and lessons learned over the past 90 years; Party development in the new environment; ways to improve the Party’s scientific development; and experiences and lessons learned from the ruling parties of overseas countries.

The seminar addressed a lesson learned from the collapse of the Communist Party of the Soviet Union and the Eastern European countries: that economic and political reforms should be adjusted according to a nation’s internal affairs and cannot blindly follow in another country’s footsteps. The seminar also emphasized that lessons can be learned from the recent political crises in the mid-East and north African countries, and concluded, “We should be on guard against the propaganda from the Western enemy forces when dealing with ‘Color Revolutions’ and must firmly resist different forms of interference.”

Source: Qiushi Theory, September 17, 2011
http://www.qstheory.cn/zywz/201109/t20110917_110705.htm

Briefings | | September 19, 2011 | Government/Politics

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

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”