Chinascope – Page 1058

Economic Information Daily on China’s Inflation

An article appearing in Xinhua’s Economic Information Daily quoted Li Daokui, a member of China’s Central Bank’s Committee on Monetary Policy, as stating, “The world, including China, has entered into an era of high inflation. Over the next five to ten years, China’s inflation will remain at a high level. Predictions are that, in the next decade, prices of energy and resources will be an important factor pushing up inflation.”

The article also mentioned urbanization and growing labor costs as two other sources of inflation. It quoted “The Grant Thornton International Business Report,” which said that, in 2011, 40% of mainland companies will face a shortage of skilled laborers, and that, in the next 12 months, 64% of mainland companies plan to increase their workers’ pay.

Source: Economic Information Daily, May 17, 2011
http://www.jjckb.cn/opinion/2011-05/17/content_308982.htm

Briefings | | May 18, 2011 | Economy/Resources

Xi Jinping Speaks on Reading the Classic Works of Marxism

At the commencement ceremony of the second session of the spring semester of the Central Party School, the highest training institute for Chinese Communist Party officials, Xi Jinping, China’s Vice President and the President of the CPS, delivered a speech emphasizing reading the classic writings of Marxism. “Our leading cadres should correctly judge the situation, keep a clear mind in the face of complex changes, maintain steady ideals and faith, scientifically analyze the opportunities and challenges, and comprehensively look at major and secondary issues, conflicts, and problems. You cannot do without the guidance of Marxist philosophy and the methodology of dialectical materialism and historical materialism.”

Xi gave specific instructions on reading the Collected Works of Marx and Engels, the Collected Works of Lenin, and books by Mao Zedong, Deng Xiaoping, Jiang Zemin, as well as Hu Jintao’s “Concept of Scientific Development.”

Source: People’s Daily, May 13, 2011
http://politics.people.com.cn/GB/1024/14635203.html

Briefings | | May 18, 2011 | Government/Politics

Huanqiu: The West Cannot Win a Human Rights Dispute with China

China’s official Huanqiu newspaper published an editorial on May 14, 2011, commenting on U.S. Secretary of State Hillary Clinton’s recent criticism of China’s human rights. (“They’re worried, and they are trying to stop history, which is a fool’s errand.”). The article, titled “The West Cannot Win a Human Rights Dispute with China,” said, “Why is it so hard for the West to achieve the ‘final victory?’ This relates to the fact that their purpose is twisted. The West now talks about human rights with China, but not the ‘various rights of a human being.’ The Western political system stealthily changed the word ‘human rights’ to give it a special meaning. According to this logic, as long as China’s way of social organization deviates from the West, its human rights development will be at a low level.”

“As a rising China gradually becomes more of a competitor to the West, the starting point of Western criticism moves further away from reality and Chinese people’s interests; what remains is only the needs of Western centrism. The proportion of constructive suggestions dwindles, while pressure from impractical “orders on a whim” increases. The result is that, as long as the Chinese government and society are basically rational, they cannot accept the Western ‘human rights road map,’ because it is obviously a blueprint that is out of touch.”

Source: Huanqiu, May 14, 2011
http://opinion.huanqiu.com/roll/2011-05/1692549.html

Briefings | | May 18, 2011 | US-China Relations

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

China’s Reaction to Trump’s Election Win

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