Chinascope – Page 1097

Liang Guanglie: Wars Are Unlikely, but Military Friction Can’t Be Excluded

On December 29, 2010, People’s Daily published a December interview of Liang Guanglie, China’s Defense Minister. Li stated in the interview, “Looking at the current world situation, a full-scale war is unlikely, but we cannot exclude the possibility that, in some local areas, unexpected events may occur, or military friction may take place due to a ‘misfire.’” He indicated that, of all the military forces, the navy, air force, and second artillery corps make up a large and growing percentage, while the army is on the decline; that 80% of the officers now have college degrees; and that a modern weaponry system dominated by second generation equipment, with third generation equipment as the backbone has preliminarily been established.

Source: People’s Daily, December 29, 2010
http://paper.people.com.cn/rmrbhwb/html/2010-12/29/content_711023.htm?div=-1

Briefings | | December 30, 2010 | Defense/Military

Researcher Suggests Trading in Yuan in Southeast Asia

Yin Jianfeng, Director of the Financial Research Center, Institute of Finance and Banking, Chinese Academy of Social Science, stated that China should avoid the Japanese yen’s mistake when pushing the yuan as an international foreign exchange reserve. Yin argued that the yen failed as an international currency due to Japan’s weak financial system, its high domestic savings rate, and the lack of an offshore trading center.

To push the yuan to go worldwide, Yin suggested using Asian countries, excluding Japan, to break into the international market, since China’s trade with these countries accounts for nearly 50% of its imports and 38% of its exports. “Hong Kong should be the yuan’s offshore international financial center.” “Trade in yuan should first start in Southeast Asia, with Hong Kong as the Southeast Asia yuan investment and trade center.”

Source: Xinhua, December 20, 2010
http://news.xinhuanet.com/2010-12/20/c_12900744.htm

Briefings | | December 29, 2010 | Economy/Resources

China’s Government Think Tanks Debate Foreign Policy

On December 21, 2010, the Institute of Asia-Pacific Studies, Chinese Academy of Social Science, published its “2010: Evaluation of China’s Security Situation.” The report stated, “In 2010, China faced intensified security pressure from its neighboring countries and deteriorating relationships with its neighbors.”

Recently China’s government think tanks have been debating the direction of China’s foreign policy. The International Herald Leader reported on a forum held to discuss the security report. Participants expressed two opposing views:

1. “China should learn how to reduce it neighbors’ fears and worries concerning China’s rise. In other words, make more friends and create zero or few enemies.”

2. “China should learn from Russia. It initially took a soft foreign policy approach, but the Western world’s continued interaction with its neighbors became a threat. After Russia showed its determination to safeguard its interests, [Ed: sending troops to Georgia], the situation stabilized.”

Source: International Herald Leader, December 24, 2010
http://news.xinhuanet.com/herald/2010-12/24/c_13663115.htm

Briefings | | December 29, 2010 | Government/Politics

Guangming: Developing China’s Propaganda Machine to Better Influence Other Countries

Guangming Daily published an article by Leng Song, a researcher at the Chinese Academy of Social Science, on how to improve China’s influence over other countries. Leng listed the following strategies:

1. Build up the CCP Central media’s brand name and reputation overseas. All major Central media have already begun to expand in the Western world.
2. Have better control and utilization of the Internet, avoiding simple approaches such as blocking or removing articles on the Internet.
3. Expand the media’s focus to both developed and developing countries. China’s current foreign propaganda focus is Europe, the U.S., Japan, and Russia. China should also cover Africa, Latin America, the Middle East, and Southeast Asia.

Leng also argued for the use of crises to promote China’s image. “Timeliness is the key to controlling the tone of the media when reporting a social crisis.” “Reporting on social crises requires full awareness of (the CCP’s) policy direction and political position.”

Source: Guangming Daily, December 22, 2010
http://epaper.gmw.cn/gmrb/html/2010-12/22/nw.D110000gmrb_20101222_1-11.htm

Briefings | | December 29, 2010 | Government/Politics

Guangming Daily: Some Thoughts on Financial Safety

Guangming Daily recently published an article discussing issues related to China’s national financial safety, which is considered to be the core of economic safety. The article expressed concern that financial globalization has resulted in an increase in negative economic fluctuations. The author believes that there are four elements that endanger the Chinese economy: (1) hot money, or unemployed capital; (2) financial innovations that lead to instability; (3) strong pressure that results from China’s foreign exchange reserves; (4) an incomplete financial system in China’s rural areas. The article called for long-term positioning of the Chinese currency (RMB), improvements in financial market administration, and increased investment in social security systems.

Source: Guangming Daily, December 20, 2010
http://epaper.gmw.cn/gmrb/html/2010-12/20/nw.D110000gmrb_20101220_4-10.htm

Briefings | | December 28, 2010 | Economy/Resources

Xinhua: China to Control the Rapid Growth of Land Prices

On December 19, 2010, Xinhua reported that the Ministry of Land and Natural Resources had just released new regulations requiring local government branches to enforce real estate administrative policies and to “decisively” stop the recent rapid increase in land prices. The Ministry pointed out that the health of the current real estate market is “facing a complex situation.” The entire society can see how land prices have been increasing in a number of cities. The Ministry called for “strong strikes” against land hoarding and speculation. The new regulations also prohibit changing the use of land into government-subsidized land for low-income housing projects.

Source: Xinhua, December 20, 2010
http://news.xinhuanet.com/2010-12/20/c_12896352.htm

Briefings | | December 28, 2010 | Economy/Resources

China and Gulf Arab Countries Held a Seminar on Economics in Guangxi

The International Department of the CCP Central Committee recently announced that China and the Gulf Arab Countries held a seminar on economics on December 16, 2010, in Guangxi, China. The theme of the seminar was “Economic Transformation and Joint Development.” More than 70 people attended. They included envoys from Gulf Arab countries, Chinese and foreign government officials, experts, and business representatives. Li Jinjun, Deputy Director of the CCP International Department, suggested in his speech that the Gulf Arab countries and China are emerging markets and face similar economic challenges. He believes it would be worthwhile to find new approaches to improving joint development.

Source: International Department of the Central Committee of CCP, December 16, 2010
http://www.idcpc.org.cn/dongtai/101216-2.htm

Briefings | | December 28, 2010 | Geo-Strategic Trend

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