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Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

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Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

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

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

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China’s Diplomatic Predicament in Middle East

Xinhua’s International Herald Leader published an article titled “How Can China Get Out of Its Diplomatic Predicament in the Middle East?” The article quotes from an Arab source that China’s Middle East policy is widely viewed by many Arab countries as “sitting on the fence.” It wants to have access to the oil but does not want to give up cooperating on technology with Israel, let alone offending the United States. The article predicts that, as China expands in the Middle East, sending Chinese troops to the Middle East to protect its workers may become inevitable, given times of chaos and the economic loss in the Libya crisis. 

“This is exactly what makes it difficult for China to play an independent role in the Middle East. The West calls China’s economic expansion without security protection ‘putting all of its eggs in the basket of the United States,’ meaning China has put its interest in the Middle East in the hands of the United States.” The article noted that China presently has warships in the Gulf of Aden all year round to ensure its oil supplies. The "Xuzhou" Destroyer entered the Mediterranean during the chaos in Libya, and its air force cargo planes fly over the Middle East. The article concluded that China should establish a long-term strategic vision for the Middle East.

Source: International Herald Leader, April 26, 2011
http://news.xinhuanet.com/herald/2011-04/26/c_13846289.htm

Briefings | | |   Geo-Strategic Trend

Understanding China’s Economic Reform

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In the late 1970s China embarked on economic reform, gradually transforming what was originally a centrally planned system into a more liberal one. As a result, in 2010 China stood as the second-largest economy in the world. Many aspects of a market-oriented system are now in place: competitive commodity and labor markets, the development of stock exchanges, a rapid growth of the private sector, and opening up to foreign trade and investment. Some observers believe that China is on the right track toward a market economy. They also believe that economic reform will finally bring about political reform – that a Taiwan style democratic China will emerge in the mainland. However, this is not what the initiator of reform – the ruling Chinese Communist Party (CCP) – wants.

This article shows that the Communist Party initiated economic reform for its own survival and the continuation of its one-party governance. The Party used private ownership, foreign capital, and a competitive market to strengthen the socialist system instead of deviating from the socialist path, and it is now using its economic success to justify the one-party political system.

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Analyses | | |   Opinion

VOA: Nearly Half of Australians View China as a Military Threat

While Australian Prime Minister Gillard is on an official visit to China for four days, from April 25 to 28, on April 25, the Lowy Institute, a leading international think tank, released a new poll. According to the poll, 44% of the respondents believed that China may become a military threat to Australia within the next 20 years; 87% of the respondents believed that, if China were to start a fight with the U.S., Australia might get involved because it is a close ally of the U.S.; 52% of the respondents said that they would support Australia to fight alongside the U.S. if a conflict explodes between North Korea and South Korea due to a North Korean provocation. 

Although Gillard recently criticized China’s human right record when Jia Qinglin, a Politburo standing committee member and Chair of The Chinese People’s Political Consultative Conference visited Australia, 58% of the respondents think Australia has not done enough to pressure Beijing on human rights.

Source: Voice of America, April 25, 2011
http://www.voanews.com/chinese/news/20110425-poll-shows-Australian-see-China-as-Military-Threat-120611044.html

Briefings | | |   Geo-Strategic Trend

China Review News: A Prolonged Struggle for Oil between China and the U.S.

A recent China Review News article predicts a “prolonged struggle for oil between China and the U.S.” It quotes Craig Roberts, a former senior U.S. Treasury official, in an interview with Middle Eastern media, “Libyan ruler Muammar Qaddafi has made two mistakes: He blocked the US Africa Command by not joining it and he let China make major energy investments in Libya instead.” The author thus concludes that the motive for the U.S. to support the rebels in overthrowing the Qaddafi regime is to remove Chinese companies from Libya. 

The article points to the global competition for oil between China and the U.S. “In the eyes of the U.S., China is vying for oil interests in the territory of U.S.” “On the surface, there is no conflict between China and the U.S. on the Libya issue, but one may overlook the point that the current war in Libya is comparable to what the U.S. and U.K. did to Japan in the 1940’s. At that time, the U.S. and U.K. cut off Japan’s oil, rubber, and minerals, which caused the Pacific War in World War II. Now, the U.S., U.K., and France are doing the same to China.” “In the future, China will inevitably compete with the U.S. for oil around the world. It is difficult to predict whether armed conflicts will occur.”

Source: China Review News, April 24, 2011
http://gb.chinareviewnews.com/doc/1016/7/0/0/101670071.html?coluid=148&kindid=0&docid=101670071&mdate=0424002415

Briefings | | |   US-China Relations

Scholar Warns of Risks to Chinese Assets from Downgrade of U.S. Credit Outlook

In a recent interview regarding the downgrade of the U.S. credit outlook, Renmin University Professor Zhao Xijun warns that the book value of Chinese investments (in U.S. government debt) may incur a loss. “Although the U.S. government is not facing default on its debt, we should be on the alert, continue to diversify our investments, and take risk control measures as well.”

Source: China Review News, April 21, 2011
http://gb.chinareviewnews.com/doc/1016/6/6/4/101666490.html?coluid=148&kindid=0&docid=101666490&mdate=0421003909

Briefings | | |   US-China Relations

VOA: High Cost Drives Chinese Exporters to Leave Coastal Provinces

Voice of America (VOA) recently reported that Chinese export businesses are planning to leave coastal provinces for inland locations or other countries. The report gave the example of the Apple iPhone OEM (Original Equipment Manufacturer) vendor FoxConn’s plan to invest US$12 billion to open new plants in Brazil. With salary increases, raw material price increases, and currency appreciation, the exporters’ production costs are growing steadily. A global supplier in Hong Kong estimates there will be a 15% increase in the price of Chinese exports. Although the government is encouraging the businesses to move their plants to inland provinces, the concern is that the increase in transportation costs to access sea ports will eat up the savings. Moving manufacturing lines to locations in nearby countries like Vietnam and Indonesia may become easier choices for their existing infrastructures.

Source: Voice of America, April 20, 2011
http://www.voanews.com/chinese/news/20110420-China-Manufacturing-by-Heda-Bayron-120312824.html

Briefings | | |   Economy/Resources

China to Strictly Control Water Consumption

The Chinese Minister of Water Resources, Chen Lei, recently spoke at a forum, stressing a strict control of the nation’s annual water consumption. The goal set for the year 2015 is 635 billion cubic meters; it is 670 billion for the year 2020. The Ministry is speeding up the process of defining national water consumption standards for high-water-consumption industries and for the service industry. Chen also emphasized that it is very important to protect drinking water sources and underground water. He said China has the most difficult water management situation in the world. The next step is to hold heads of local governments responsible for enhancing water management supervision and for implementing the administrative system.

Source: China News Service, April 15, 2011
http://www.chinanews.com/gn/2011/04-15/2976679.shtml

Briefings | | |   Economy/Resources

Chiefs of General Staff of SCO Member Countries Meet in Shanghai

On April 25, 2011, the Shanghai Cooperation Organization (SCO – founded in 2001 by the leaders of China, Kazakhstan, Kyrgystan, Russia, Tajikistan, and Uzbekistan) held a conference for the Chiefs of the General Staff in Shanghai, as part of the agreement of the Tashkent Summit of SCO Heads of State. China initiated the conference; it will be the first of its kind since SCO was founded ten years ago. Chen Bingde, China’s chief of the general staff of the People’s Liberation Army and also the host of the conference pointed out that, over the past 10 years, defense and security cooperation among SCO member states has been fruitful; mutual military trust has deepened; laws and regulations have continued to improve; the cooperation mechanisms have developed; and joint anti-terror exercises have been effective. SCO defense ministers signed a cooperation plan last month for the period 2012-2013.

Source: Xinhua, April 22, 2011
http://news.xinhuanet.com/2011-04/22/c_121335988.htm

Briefings | | |   Defense/Military