Chinascope – Page 1032

CCTV Finance Channel: How to Deal with the Sky-High U.S. Debt

On People’s Daily Online, Niu Wenxin, Managing Editor and Chief Commentator of the CCTV Finance Channel, commented on the “sky-high" U.S. debt. Niu argued that, technically speaking, the U.S. government is already bankrupt. The total U.S. debt in 2007 was $US73 trillion, including hidden debts such as social security liability and bonds issued by companies with government guarantees or by local governments, but the total of U.S. current assets is only $US50 trillion. “The best choice for the U.S. is to repudiate its debt” and “force other countries to accept U.S. debt restructuring.”

“It is a ‘zero-sum’ game. If the U.S. wins, other countries (including China) will lose.” Niu then listed four reasons why China should not tighten its monetary supply: 1. Such a tightening will suppress economic growth. 2. It may lead to a financial crisis and recession in China. 3. It will cause higher unemployment. which in turn will result in social unrest and challenges to the CCP’s ruling position. 4. Europe is trying to hang on to the U.S. and hopes China will be sacrificed.

Source: People’s Daily Online, August 1, 2011
http://finance.people.com.cn/GB/15294964.html

Briefings | | August 3, 2011 | Economy/Resources

Central Military Commission Requests Military Study Hu’s Speech

On August 2, 2011, the Central Military Commission issued “The Opinion on In-depth Study of (Party) General Secretary Hu Jintao’s Important Speech at the Chinese Communist Party’s (CCP’s) 90th Anniversary Celebration.” The "Opinion" stressed that “when studying (Hu’s) speech, one should firmly stick to the fundamental political requirements to hold (high the CCP’s) banner and follow the Party’s direction, forever maintain faith in Marxism, forever maintain faith in socialism with Chinese characteristics, forever maintain the stand that the party has absolute leadership over the military, and forever maintain trust in the Party Central Committee that is under Hu’s leadership to ensure that the military resolutely follows the direction of the Party Central Committee, the Central Military Commission, and President Hu.”

The opinion requested that “Party committees at all levels in the military should put the study in a prominent position. The Party secretary should fulfill the responsibility of the person-in-charge to carry out the mission."

Source: Xinhua, August 2, 2011
http://news.xinhuanet.com/politics/2011-08/02/c_121760949.htm

Briefings | | August 3, 2011 | Defense/Military

Xinhua: China Building Hydropower Station in Zambia

Xinhua recently reported that construction started on July 20, 2011, on the Zambian Kafue Gorge Lower Hydro-power Station. The China Water & Electric Corporation (CWE), the China-Africa Development Fund, and Zambia Electricity Supply Corporation Limited (ZESCO) funded the project. The President of Zambia attended the opening ceremony and welcomed the Chinese investment. The capacity of the power plant is 750,000 kw. The construction project is expected to take 6 years to complete. Once the plant starts producing, CWE will remain as a primary shareholder .

Source: Xinhua, July 21, 2011
http://news.xinhuanet.com/2011-07/21/c_121697509.htm

Briefings | | August 2, 2011 | Geo-Strategic Trend

Politburo: Maintain Strong Control of the Real Estate Market

According to China Review News (CRN), a Politburo meeting chaired by Hu Jintao on July 22 reported that China’s general economic health is positive, but the issues of imbalance, inconsistency and unsustainability are still very pronounced. New issues are also coming up due to the changes in the international and domestic environments. The primary goal of macroeconomic management is to stabilize the overall consumer price level, which includes maintaining strong control over the real estate market. The meeting also emphasized the firm position of lowering the rate of increase in housing prices and speeding up the development of low-income housing projects. The meeting called for unifying all thoughts and actions on all administrative levels towards the direction that the Party Central Committee pointed out.

Source: China Review News, July 22, 2011
http://gb.chinareviewnews.com/doc/1017/7/5/4/101775457.html?coluid=151&kindid=0&docid=101775457&mdate=0722214159

Briefings | | August 2, 2011 | Economy/Resources

Xinhua: Western Media Makes Up Stories about Joint Nuclear Effort

Xinhua recently published an article criticizing Western media for making up stories about an Iran-North Korea joint effort to build long range nuclear missiles. The article referred to the London based Telegraph, which on July 21, 2011, reported on a study done by the British think tank, the International Institute for Strategic Studies (IISS). Xinhua said that IISS suggested that the two aforementioned nations are jointly developing nuclear missiles. Also mentioned in the Xinhua report were a report from the Israeli Jerusalem Post and suggestions made by U.S. think tank Rand. Reuters also reported on some “guess work” by the South Korean Defense Minister on the same effort. The Xinhua article downplayed the situation and suggested that it will be too hard for these two nations to come up with a usable intercontinental missile platform any time soon, although it is possible they may have “some kind of cooperation."

Sources:
Xinhua, July 29, 2011
http://news.xinhuanet.com/mil/2011-07/29/c_121739281.htm
Telegraph, July 21, 2011
http://www.telegraph.co.uk/news/worldnews/asia/northkorea/8653171/North-Korea-and-Iran-increase-collaboration-on-nuclear-missile-report-claims.html

Briefings | | August 2, 2011 | Geo-Strategic Trend

Xinhua: The Story behind the Billion Dollar Relocation of the U.S. Military Base in South Korea

Xinhua reported on July 30, 2011, that the true purpose for the U.S. to relocate its military base in South Korea is to contain China and that the U.S. has bullied South Korea into paying the relocation fee. Xinhua quoted a South Korea magazine New Southeast Asia that disclosed the story about the U.S. project of relocating its military base. The report said, “In recent years, the U.S. and South Korea have held frequent and prominent joint military exercises, touting their ‘solid’ ally relationship. However, the reality is quite different from the appearance. This pair of allies has negotiated for many years regarding (who will pay) the relocation expenses for the U.S. military in South Korea. The U.S. is arrogant, bullying, and sneaky, whereas South Korea can only swallow the bitterness and make concessions.”

Regarding the purpose for the U.S. military base to move to Pyongtaek, the article said, “As a matter of fact, the U.S. military has an ulterior motive for the move. China is rising, which makes the U.S. nervous. Therefore, the U.S. wants to build the biggest overseas military base in Pyongtaek in order to contain China. Building a Pyongtaek military base comes completely out of its global strategy; it is not just to improve the working conditions for the U.S. military so as to protect South Korea from (an attack by) North Korea.”

Source: Xinhua, July 30, 2011
http://news.xinhuanet.com/world/2011-07/30/c_121742551.htm

Briefings | | August 1, 2011 | Geo-Strategic Trend

Xinhua Commentary: Don’t Overlook Responsibility for an Elephant & Donkey Fight

Xinhua published a headline news article in its world section, commenting on how the U.S. political system is at fault during this time of the ongoing U.S. debt limit crisis.

The article said, “Whether the U.S. will default on its debt obligation has entered the countdown time, but the politicians in Washington have not shown any signs of compromise. … The uncertainty created by the Elephant & Donkey Fight (the partisan struggle) overshadows the world economy. “The U.S. Congressional representatives from both parties openly fight a war of words at the expense of the nation and the people’s interests. It is actually playing a ‘dangerous game.’ As the August 2 ‘deadline’ nears, the struggle brings great worries to the American people and the world.” “Although most analysts predict the two parties will reach a compromise at the last minute, nobody can be sure that U.S. will be able to keep its AAA sovereign credit rating. U.S. President Obama also admits that if the U.S. credit rating is downgraded, it is because Washington lacks a political system that is compatible with a AAA credit rating.” “… the Elephant & Donkey Fight, which overlooks global responsibility, has created new risks. In the end, it will also hurt the Americans themselves.”

Source: Xinhua, July 30, 2011
http://news.xinhuanet.com/world/2011-07/30/c_121747426.htm

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

People’s Daily: It’s Time for Washington’s Immoral Political Farce to End

China’s state-run media People’s Daily used the debt limit to publish a commentary that sharply criticizeding the U.S. political system. “As the ‘deadline’ for Washington to raise the debt limit is getting closer, investors around the world are worried about the dire consequences of the ‘U.S. defaulting on its debts.’”

“The politics of voting restricts the White House’s political decisions. The political farce on the U.S. political stage allows the whole world to witness the essence of this problem with U.S. politics."

“Washington’s farce is making the world more and more worried that the U.S. has a dangerous propensity: Washington’s politicians ignore or even sacrifice other people’s interests to gain votes."

“People have a deeper understanding of the problems with the U.S. economy and will also be more suspicious of the U.S.’s political direction, foreign policy and ‘leadership ability.’ The show at the edge of the cliff has not only kidnapped the world economy, but also ruined its own reputation. It’s time for Washington’s immoral political farce to end.”

Source: People’s Daily, July 30, 2011
http://world.people.com.cn/GB/1029/42355/15287020.html
http://news.xinhuanet.com/world/2011-07/30/c_121746143.htm

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

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.”

The CCP’s Performing Arts Troupes in the U.S.