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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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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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VOA: Chinese Aid to Africa Encourages Corruption

Voice of America (VOA) recently reported that, for the first time, the Chinese government released a policy white book on foreign aid. In 2009, the total amount of Chinese foreign aid reached US$40 billion. Africa received half of that aid. The white book emphasized that Chinese aid does not come with political conditions. However, as Chinese aid has a low transparency, it is often criticized, even among the locals, because of the opportunities for corruption. The fact that the aid results in Chinese rather than local laborers being employed and the low transfer rate of technology have also resulted in complaints. Seventy percent of what Africa exports to China is oil.

Source: Voice of America, April 21, 2011
http://www.voanews.com/chinese/news/20110421-China-Gives-Almost-Half-of-Foreign-Aid-to-African-Countries-120397484.html

Briefings | | |   Geo-Strategic Trend

CASS Held Seminar on the 20th Anniversary of the Fall of the Soviet Union

On April 24, 2011, Xinhua reported that the Chinese Academy of Social Sciences (CASS) and 12 other organizations jointly held an academic seminar on the fall of the Soviet Union. Over 200 people attended the seminar. The primary topics were “The Reason for the Fall of the Soviet Union,” “The Consequences of the Fall of the Soviet Union,” and “The Outlook for the World Socialist Movement.” Some experts expressed the belief that a deep understanding of the reason for the fall and of its impact are the key to improving the socialist movement. They believe socialism can be realized in the foreseeable future. The participants concluded that the seminar will have a positive impact on the process of building socialism with Chinese characteristics. It will also help advance the ideological movement of socialism around the globe.

Source: Xinhua, April 24, 2011
http://news.xinhuanet.com/2011-04/24/c_121342251.htm

Briefings | | |   Geo-Strategic Trend

China Worries about the Outflow of Wealth

Regarding the recent 2011 China Private Wealth Report, which notes the trend of wealthy people’s investments emigrating overseas, follow-up debates have appeared in some local newspapers. An article in Jinan Times, which is based in Shangdong Province, expressed the deep concern that China is losing wealth as well as talent. The author suggested four solutions to the problem: 1) Improve the implementation of laws that will truly protect private property; 2) Improve the tax system to ensure fairness and justice; 3) Repair the relationship between the general public and the wealthy; 4) Break industrial monopolies and introduce more investment channels. In another article in Shenzhen Economic Daily based in Guangdong Province, the author expresses several concerns regarding the trend: 1) It will be a drain on national wealth; 2) An outflow of wealth will dampen the demand for the service industry; 3) The trend will result in less investment in real estate, a further blow to the already shaky sector; 4) There is no clear and convenient solution to this problem.

Source: China Review News, April 24, 2011
http://gb.chinareviewnews.com/doc/1016/7/0/5/101670526.html?coluid=49&kindid=974&docid=101670526&mdate=0424082041
http://gb.chinareviewnews.com/doc/1016/7/1/6/101671697.html?coluid=53&kindid=0&docid=101671697&mdate=0425004647

Briefings | | |   Economy/Resources

Increasing Wages Triggers Heated Debates

Guangzhou based Yangchen Evening News published an article on the recent heated debates about increasing wages. Over the past year, the authorities in the central government have expressed an urgent need to increase the minimum wage. For example, in April 2010, at the executive meeting of the state council, Premier Wen Jiabao named the reform of income distribution and the social security system as the top agenda items. In May 2010, the National Development and Reform Commission released its study on income distribution in several provinces. The State Council circulated NDRC’s “Opinion on Key Tasks to Strengthen Economic Reform in 2011,” and vowed to make reforming income distribution its top priority. 

A study shows that the minimum wage in many countries is between 40-60 percent of the national average income, while the figure is only 17 percent in Beijing and 23 percent in Guangzhou. Over the year, cities or provinces including Shanghai, Shanxi, Chongqing, and Zhejiang have developed plans to increase the minimum wage. Some even proposed to double wages within the next five years. 
However these calls have been met with serious doubts. Some scholars question the government’s capacity to redistribute income to individuals. Some online commentators believe that it’s not difficult to double government employees’ salaries, but that for private enterprises, whose labor costs fluctuate with the market situation, the government directive will not work. Some Chinese netizens have expressed doubts as to whether wage increases will ever catch up with inflation.

Source: Yangchen Evening News reprinted in Chinese Economy online, April 27, 2011 

http://www.ce.cn/xwzx/gnsz/gdxw/201104/27/t20110427_22389034.shtml
Briefings | | |   Economy/Resources

China, Russia and North Korea Launch a Visa-free Travel Program

A China-Russia-North Korea visa free tourist program was formally put in place on April 26. A pilot tour group of 21 people started a trip from Changchun, the capital of China’s Jilin Province, traveled through Huichun City in Jilin, Russia’s Slavyanka, Vladivostok and Khasan, and North Korea’s Hancha and Nasŏn, and finally returned to Huichun. With the visa application waived, one can tour these three bordering North East Asian countries within four days.

Source: Xinhua, April 26, 2011
http://news.xinhuanet.com/fortune/2011-04/26/c_121350825.htm

Briefings | | |   Geo-Strategic Trend

Red Flag Manuscript: Internet Freedom Has Become Clinton’s New Doctrine for U.S. Foreign Policy

Red Flag Manuscript, a publication of the Central Committee of the Chinese Communist Party, published a commentary by Zhou Hong, the director of the European division of the Chinese Academy of Social Sciences. Based on U.S. Secretary of State Hillary Clinton’s February 15, 2011, speech on Internet Freedom given at George Washington University, Zhou concludes that the U.S. is shifting its foreign affairs strategy by launching “a war without borders in cyberspace.” As a result, China faces new challenges in its foreign affairs. 

The article states “Hillary was using war declaring language when she announced the State Department’s decision. She calls for having the countries that suppress Internet freedom pay economically and face the same threats of political unrest that Egypt and Tunisia faced.” “Hillary openly named China, Cuba, Iran, Burma, Syria, and Vietnam as countries that ‘censor content, do not allow their citizens to access the global Internet, and arrest bloggers who criticize the government.” “Hillary believes this is a major change in U.S. foreign policy. She said this is a critical choice made by the U.S. government in a critical moment.” 
“Hillary’s above statement, along with her Internet freedom speech in 2009, indeed tells of a new U.S. foreign policy strategy: As the status of U.S. hard power is significantly declining, it is increasingly using soft power in a skillful way to serve its foreign affairs.” 
The article points out that China also faces new social challenges in foreign relations as a result of the Internet war the U.S. has launched. “There is no doubt that our foreign affairs will also face a transition from traditional foreign dealings to social foreign affairs, which include a variety of channels, with the Internet as the key component.” “How we can use the Internet and other social channels to tell a convincing ‘Chinese Story’ to our people and to the international community has become a pressing task."

Source: Red Flag Manuscript, April 27, 2011
http://www.qstheory.cn/hqwg/2011/201108/201104/t20110427_78514.htm

Briefings | | |   US-China Relations

The Credibility of China’s Government Is Dangerously Low

[Editor’s Note: Several articles in the Chinese media have criticized the government of China, saying it has lost its credibility with its citizens, who now have no trust or confidence in the authorities. For the majority of the people, casting doubt on whatever the government says has become a habit, as the followings excerpts from some articles show.]

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Reports | | |   Report