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Momentary Freedom for the Media – An Analysis of the CCP’s Reaction to the High-Speed Train Wreck

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The deadly high-speed train wreck near Wenzhou City, Zhejiang Province on July 23 stirred up a deluge of Internet/media activity in China. The general public reacted swiftly and overwhelmingly on the Internet to share information and cast doubt on the government’s credibility. While the Chinese Communist Party (CCP) attempted to quiet the media, the media, on the other hand, tried to express their freedom of speech. Eventually the Central Propaganda Department of the CCP imposed tight control over media and Internet content.

This paper analyzes how the public, the media, and various official actors reacted to the situation and observes: Some “bad guys” and “good guys” in the CCP may react differently to an incident, but it is the CCP’s top decision makers who make the final call. What they care about the most is to protect the CCP’s power. They would not let anything happen to jeopardize that power.

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Young Journalists Swear Loyalty Oath to the Party

On August 4, one hundred young journalists from 18 official news media agencies including People’s Daily, Xinhua, PLA Daily, Qiushi, Guangming Daily, and Economic Daily went to Qingliang Mountain in Yan‘an, the birthplace of the media center of the Communist Party. From 1935 to 1948, Yan‘an served as the revolutionary base for the Central Committee of the Communist Party.

They visited the Yan’an Media Memorial Hall and participated in a ceremony where they took an oath to “carry on the party’s media work tradition … and strive to be a media worker who will let the party be worry-free." Following the oath swearing ceremony, the group was divided into ten teams and went to stay with the villagers in Wuqi and Yanchang villages of Yan’an in order to experience the villagers’ life and “increase their sense responsibility as news reporters.”

Source: Chinese Communist Party News Website, August 4, 2011
http://cpc.people.com.cn/GB/64093/64387/15341421.html

International Herald Leader: China needs a Ministry of National Emergencies

The International Herald Leader, a publication under Xinhua, stated in a commentary that there is a need to form a cross-functional “Ministry of National Emergencies” under the State Council.

The commentary said that the existing “Command Center,” “Group of Leaders,” or “Rescue Center” in China appear to be temporary, unprofessional, and not in conformance with international standards. It named the Homeland Security Department in the U.S. and the Ministry of Emergency Situations in Russia as the models for China to follow.

“If the answer had been yes to the question about a Ministry of National Emergencies, then the current investigation of the high speed train incident could have been handled by this Ministry rather than the ‘Specialist Team’ set up by the authorities in the Ministry of Railways.” The commentary observed that, provided there was no security leakage issue, the ministry could have invited high speed train experts from countries such as Japan and Germany to conduct a joint investigation to identify the causes.

Source: Xinhua, August 5, 2011
http://news.xinhuanet.com/herald/2011-08/05/c_131029052.htm

Chinese Foreign Minister: China will Continue to Support the EU and the Euro

During his visit in Poland, Chinese Foreign Minister Yang Jiechi told the media that China pays close attention to the sovereign debt crisis in Europe. China supports the measures that the European Union and the International Monetary Fund have taken to stabilize the situation. “China continues to have confidence in the Euro zone and the Euro. In recent years, China has increased its holdings of Euro bonds.” Yang said that China will continue to support Europe and the Euro.

Yang also hoped that “the United States adopt a responsible monetary policy,” and that “the U.S. implement practical measures to insure the safety of other countries’ assets in the U.S.”

Source: China News Service, August 5, 2011
http://www.chinanews.com/gn/2011/08-05/3236891.shtml

China’s Dependence on Crude Oil Surpasses That of the U.S.

According to People’s Daily, the Ministry of Industry and Information Technology (MIIT) has issued data showing that, from January to May 2011, China’s domestic apparent consumption (production plus net imports) of oil reached 198 million tons, an increase of 10.3 percent over the same period last year. The apparent consumption of crude oil was 191 million tons, an increase of 8.5 percent. China relies on imports for 55.2 percent of its crude oil consumption, a proportion surpassing that of the U.S. MIIT warned that China’s oil consumption outpaces its GDP growth, placing tremendous pressure on energy production and conservation, as well as the reduction of emissions. The Chinese Academy of Engineering projects that, by 2030, even under a pessimistic scenario, China’s annual oil demand will reach 644 million tons. Without proper control, China may have to import 70 percent of the oil it consumes.

Source: People’s Daily online, August 4, 2011
http://energy.people.com.cn/GB/15324102.html

Xinhua: China Cannot Promise to Give Up the Use of Force in South Sea Conflict

Xinhua published an article by a scholar from Xiamen University, stating that China should not promise to give up the use of force in the South China Sea conflict. The article says, “The essence of the Philippines and Vietnam asking to sign a binding document with China through ASEAN on peaceful actions on the South China Sea issue is that they are attempting to force China to acknowledge their occupation of the South China Sea islands … and to nullify China’s ability to use armed force.” The article claims, “For a long time, China adopted a friendly policy toward its neighbors so as to win time for its economic development. However, in the South China Sea conflict, there is no win-win outcome. China must be prepared for military action. China is the party whose sovereign rights are violated. If China unilaterally promises to solve the conflict only through peaceful means, it will … allow the de facto occupation of the South China Sea islands by the Philippines and Vietnam. The Philippines and Vietnam will not need to worry about being attacked by armed force. Considering the arrogant attitude of the Philippines and Vietnam, the possibility of regaining the occupied islands in the South China Sea through peaceful means is quite minimal.”

Source: Xinhua, August 3, 2011
http://news.xinhuanet.com/mil/2011-08/03/c_121762183.htm

Xinhua Commentary: Japan’s Defense White Paper Deliberately Raises Tension

Xinhua published a commentary blasting Japan’s newly published defense white paper. The article says, “The 2011 defense white paper that the Japanese government released … extensively describes China’s military force in large volumes and even fans the flames to stir up a tense atmosphere. The Japanese action severely damages Sino-Japanese relations.” “This year’s defense white paper not only makes irresponsible remarks about China’s normal development of its national defense but also incites dissension and transmits aggressive and invasive intentions in the text.” “Additionally, what’s ‘new’ in the white paper is the claim that China is starting to show a ‘forceful manner,’ while Japan is starting to display a posture of ‘caring for’ its neighbors.”

The article further states that there are two reasons for Japan to make such comments in the white paper. “First, Japan has been constrained by a cold war mentality for a long time; trapped in the Japan-U.S. ally’s mythology; and embedded in a milieu of ‘China threat’ and ‘containing China.’ Second, Japan has a strong invasive desire to get rid of the restrictions on its defense policy that its peace constitution imposed after the war (World War II).”

Source: Xinhua, August 4, 2011
http://news.xinhuanet.com/mil/2011-08/04/c_121809765.htm

Scholar: Protect the Dollar Value of China’s Holdings of U.S Debt.

Sun Lijian, a Professor of Finance and Vice Dean of the School of Economics at Fudan University, wrote an article in Shanghai Securities News recommending that China should expand Shanghai’s offshore settlement business to control the dollar value of its holdings of U.S. debt. “When they (the United States) threatened to default, we realized how critical it is for China to … internationalize the renminbi.” Sun recommended that China leverage Shanghai as an international financial center and proactively expand the Asian dollar offshore settlement business. This would enable China to get around the bottleneck from the absence of a market mechanism for adjusting the exchange rate and the interest rate, the lack of international finance professionals, and the deficiencies in risk management. That, wrote Sun, would allow China to protect, to the maximum extent, the dollar value of its holdings of U.S. debt, and buy time for China to internationalize the renminbi.

Source: Shanghai Securities News reprinted by Qiushi, August 1, 2011
http://www.qstheory.cn/jj/jjyj/201108/t20110801_98836.htm