Chinascope – Page 1056

Fifth Increase in the Bank Deposit Reserve Ratio This Year

On May 12, 2011, China’s central bank, the People’s Bank of China, decided to increase the deposit reserve ratio another half percent. It was the fifth increase this year. It is believed to be a signal that decision makers are determined to fight inflation and excess liquidity. The announcement came after the State Statistics Bureau and the central bank published April’s economic and financial data. While economists believe this is a gesture to combat high inflation, they fear that inflation will remain high in the foreseeable future. This recent hike in the ratio is able to freeze 370 billion yuan and is considered a way to tighten liquidity. Experts believe there is a downside risk on both the real estate market and the real economy in terms of the cost of loans. Since 2008, the central bank has increased the ratio 17 times.

Source: Xinhua, May 12, 2011
http://news.xinhuanet.com/2011-05/12/c_13872209.htm

Briefings | | May 17, 2011 | Economy/Resources

Ministry of Foreign Affairs: Vietnamese Election in Spratly Islands was Illegal

On May 10, 2011, Jiang Yu, the spokesperson for the Chinese Ministry of Foreign Affairs, commented on the Vietnamese election of a representative from the Spratly Islands to the National Assembly and the local People’s Council. Jiang said that China holds “indisputable” sovereignty over the Spratly Islands and any single-sided action another country takes on the Islands is a violation of China’s sovereignty. She said the Vietnamese election was illegal and invalid, and did not conform to the Declaration of the Code of Conduct on the South China Sea.

Source: Xinhua, May 10, 2011
http://news.xinhuanet.com/world/2011-05/10/c_121400466.htm

Briefings | | May 17, 2011 | Geo-Strategic Trend

VOA: CNPC Determined to Drill in Iraq

Voice of America (VOA) recently reported that China National Petroleum Corporation (CNPC) and its partners made a successful bid for part of the development work in the Halfaya Oil Field in southeast Iraq. Halfaya has a proven reserve of 4.1 billion barrels, with a current daily output of 3,100 barrels. The CNPC-led group won the bid for the 20-year development rights of Halfaya last year. The plan is to increase the daily production to 70,000 barrels by the end of this year. David Fridley from the U.S. Lawrence Berkeley National Laboratory suggested that the goal will be hard to achieve. Even if the goal is realized, the return on investment per barrel is only US$1.4. Many international oil companies gave up on the original bid due to the extremely low profit. The belief is that, even given the low profitability, China was still determined to drill in Halfaya just to secure an international source of oil. Half of China’s oil is imported. CNPC holds 37.5% of Halfaya shares.

Source: Voice of America, May 10, 2011
http://www.voanews.com/chinese/news/20110510-CNPC-121586299.html

Briefings | | May 17, 2011 | Geo-Strategic Trend

Red Flag Manuscript: An Analysis of Democracy Chaos in Certain Asian Regions

[Editor’s Note: An article appeared in Red Flag Manuscript’s 5th issue in 2011, analyzing “democracy chaos” in some Asian countries. [1] The author concludes “the expansion of democracy that the U.S. promotes has not brought about an economic boom or social development in these regions. On the contrary, it led multiple countries or regions to fall into political instability and even chaos. In some areas and countries, with the progress of so-called democratization, ‘chaotic symptoms’ have developed, such as ethnic conflict, splitting the nation, social turmoil, massive corruption, and an unstable political situation. This is the consequence of blindly applying a Western democratic system without considering local social and culture conditions.” Excerpts from the article are translated below.] [2]

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Reports | | May 16, 2011 | Report

Ministry of Foreign Affairs’ Rebuttal to Clinton’s Comments on China

In an interview published in The Atlantic, U.S. Secretary of State Hillary Clinton criticized China’s “deplorable” human rights record and characterized the Chinese government’s attempt to suppress democratic reform as a “fool’s errand,” citing the recent revolutions in the Middle East as an example. In response, China’s Ministry of Foreign Affairs spokesperson Jiang Yu said, “It is inappropriate for anyone to compare China to the West Asian and North African countries. It would be futile for anyone to attempt to bring the Middle East crisis into China and change the development path that the Chinese people have chosen for themselves.”

Source: Xinhua, May 14, 2011
http://news.xinhuanet.com/2011-05/14/c_121414581.htm

Briefings | | May 16, 2011 | US-China Relations

Li Changchun: Further Improve Understanding of the Importance of Socialist Culture

When Li Changchun, a member of the Chinese Communist Party Politburo Standing Committee, was on tour visiting Shanxi Province, he emphasized that culture is the wellspring a nation’s cohesion and creativity; it is an important factor of overall comprehensive national competitive power; and it is an important support for economic and social development. Li called for attentively studying the CCP central committee’s policies regarding the development of culture, profoundly understanding the importance of culture, promoting the great development and prosperity of [socialist] culture, and constantly opening up new development avenues for socialist culture with Chinese characteristics.

Source: Xinhua, May 10, 2011
http://news.xinhuanet.com/2011-05/10/c_121400764.htm

Briefings | | May 13, 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.”