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Chinese Lenovo Will Acquire Germany’s Medion

On June 1, 2011, Lenovo Group Limited announced its plan to acquire the German consumer-electronics group Medion AG, a well-known electronics manufacturer and supplier. The report indicated that the acquisition will be completed in the third quarter with a cash payment. The move is viewed as a major step for the Chinese Lenovo to penetrate the European market, particularly the German PC market, which will also promote Lenovo’s mobile Internet business. After the acquisition, Lenovo will become the third largest PC manufacturer in Germany.

[Editor: According to Deutsch Welle, "Under the deal, Lenovo plans to buy a 36.6 percent stake from Medion founder and chief executive Gerd Brachmann, who currently owns more than 55 percent of the company. It then wants to extend the 13-euro-a-share offer to other shareholders to build a controlling stake for a total price of 466 million euros."]

Sources: Xinhua, June 1, 2011
http://news.xinhuanet.com/fortune/2011-06/01/c_121484398.htm
Deutsch Welle, June 2, 2011
http://www.dw-world.de/dw/article/0,,15124805,00.html

Lawyers Organized to Effectuate the Party’s Rule of Law

A government sponsored lawyer’s group has been established to “assist” lawyers without licenses in counties and cities. The Party’s United Front Work Department and the Ministry of Justice are sponsoring the "One Heart Legal Services Group,” which consists of 48 lawyers who are not Party members. According to Chen Xiqing, Deputy Chief of the United Front Work Department, establishing of the group is “an important measure to effectuate the rule of law, protect the less developed regions, and share the results of civilized society under the rule of law; to better "work the masses" under the new situation and maintain social harmony and stability; to build up the brand name of ‘one heart’ for the Party’s United Front Work Department and strengthen its political foundation; and to deepen the United Front Work on persons who have newly joined China’s social elite, and strengthen the importance of training and educating non-Party representatives.” 

[Editor: The Party’s United Front Work Department is a CCP agency to “unite” nongovernment groups and individuals so that they will carry out the Party’s agenda.]

Source: Xinhua, May 30, 2011
http://news.xinhuanet.com/politics/2011-05/30/c_121475229.htm

PLA Daily: The U.S. Will Never Give Up the Use of Hard Power

The people’s Liberation Army Daily published an article that comments on U.S. Defense Secretary Gates’ recent speech. The article states that during the speech, Secretary Gates held that dealing with a complex and unpredictable international security environment needs size, steel, and strength. It marks a change from President Obama and Secretary Clinton’s earlier remarks that the new administration would adopt “smart power” diplomacy. “In short, to maintain its world hegemony, the normal practice of the U.S. is to use both hard and soft power; put figuratively, it is the ‘carrot and stick’ approach. In the future, the U.S. may still insist on building its soft power, but when it comes to maintaining its global hegemony, it will never give up or relax the use of hard power. In this regard, one should not have any wishful thinking or unrealistic expectations.”

Source: Ministry of National Defense of the People’s Republic of China, reprinted from People’s Liberation Army Daily, May 29, 2011
http://www.mod.gov.cn/gflt/2011-05/29/content_4244191.htm

Report Projects 200 û 300 Million Migrants in Coming Decades

A China Urban Development Report released by a mayors’ association predicts that the size of the nation’s mobile population will be 200-300 million in the coming two or three decades. “The complex dynamics of its (migrants) geographic distribution, composition, and quality is posing a severe challenge for national strategic planning, the government’s social management, and public services.” 

A Tsinghua University professor, Mao Qizhi relates the phenomenon to the country’s accelerating urban development. “Many conflicts and confusions need attention, such as high housing prices, traffic congestion, environmental degradation, and imperfect urban infrastructure.” 
The report also indicates that many local governments rely on land transfers as a major source of fiscal income.

Source: Xinhua, May 30 2011
http://news.xinhuanet.com/2011-05/30/c_13901731.htm

Politburo Study Session on Social Management

On May 30, the Chinese Communist Party’s Politburo, a group of 25 of the most senior cadres, held a study session on “strengthening and innovating social management.” The meeting, over which Hu Jintao presided, emphasized that “strengthening and innovating social management matters for consolidating the ruling status of the Party and is important for the nation’s long term stability and for people’s livelihoods.” “China is now in an important period of strategic opportunities, and also in a period with prominent social conflicts. The task of social management is heavier and more arduous.” “(We need) to firmly grasp the general requirements of maximally stimulating social vitality, maximally increasing harmonious factors, and maximally reducing disharmonious factors.” 

The structure of social management was reiterated at the meeting. It views the CCP committees as the leadership, with the government taking responsibility, and the communities and the public participating and coordinating.
Source: Xinhua, May 30, 2011
http://news.xinhuanet.com/2011-05/30/c_121475082.htm

China Admits Cyber Warfare Unit

At a press briefing on May 25, Ministry of National Defense spokesman Senior Colonel Geng Yansheng acknowledged the existence of a professional cyber warfare unit at Guangzhou Military Region, also known as the “Online Blue Army.” “China’s network protection is comparatively weak. Enhancing IT capacity and strengthening network security protection are important components of military training for an army,” said Geng, who did not respond to a question on whether the goal of the unit is to attack other countries.

Source: China Review news, May 26, 2011
http://gb.chinareviewnews.com/doc/1017/0/5/7/101705788.html?coluid=151&kindid=0&docid=101705788&mdate=0526085650

Ministry of Foreign Affairs: China Opposes Words and Deeds against the One-China Principle

On May 24, 2011, Xinhua reported that Jiang Yu, the spokesperson for China’s Ministry of Foreign Affairs, commented on an opinion expressed by Richard Bush, the former Chairman of the Board and Managing Director of the American Institute in Taiwan. Mr. Bush asserted that no one can deny the fact that the Republic of China has existed continuously since 1912. Jiang said that there is only one China in the world, that Taiwan is part of China, and that China strongly opposes that some people in the U.S. completely ignore the facts and employ words and deeds that are against the One-China Principle.

Source: Xinhua, May 25, 2011
http://news.xinhuanet.com/2011-05/25/c_121453563.htm

China Hopes to Become a Net Capital Exporter

A Chinese Ministry of Commerce official told Xinhua that the country’s overseas investments have been growing at a high speed. “If the world economy continues to improve, in three or four years, Chinese enterprises’ annual foreign direct investment is expected to exceed US$100 billion, an amount commensurate with the current annual absorption of foreign capital. This brings the hope that China will soon become a net capital exporter.” 

In 2010, China invested US$59 billion in 122 countries and regions. According to a UN report, last year saw China become the third largest investor in Latin America. Despite the high growth of outbound investment, risks are increasing. Some governments have prevented China from investing in some industries, with the belief that Beijing’s support of certain large companies results in unfair competition.

Source: Xinhua, May 17, 2011
http://news.xinhuanet.com/2011-05/17/c_13878558.htm