Chinascope – Page 1105

Yangcheng Evening News: Renminbi over the Limit of Affordability for Enterprises in Guangdong

The Economy and Information Committee of Guangdong Province published a news briefing on October 26. In it, the leaders of the Committee explained that the appreciation of the Chinese renminbi is already over the limit of affordability for most industrial enterprises in Guangdong Province. If the renminbi continues to strengthen in value this year, the majority of enterprises that export products and have a low profit margin will be unable to maintain normal operations and will therefore fold. The Deputy Director of the Guangdong Economy and Information Committee, Li Xiongming, said that the enterprises in Guangdong Province currently can only afford a two percent appreciation of the renminbi per year.

Source:
Yangcheng (Canton) Evening News, October 27, 2010
http://www.ycwb.com/epaper/ycwb/html/2010-10/27/content_955634.htm

Briefings | | October 29, 2010 | Economy/Resources

CASS Blue Book: China Will Become the Second Strongest Country in the World

The Chinese Academy of Social Sciences (CASS) issued the 2010 National Competitiveness Blue Book in Beijing on October 25. The Blue Book delineates China’s strategic goals in national competitiveness. They are: By 2020, China’s national competitiveness will reach the leading countries of the world and rank among the top five countries in G20. By 2030, China’s comprehensive competitiveness will be behind only the U.S. and the E.U. By 2050, China will become the second strongest country in the world, surpassed only by the United States.

Source: Southern Metropolitan Daily: October 26, 2010
http://nf.nfdaily.cn/nfdsb/content/2010-10/26/content_17021179.htm

Briefings | | October 29, 2010 | Government/Politics

China Provides Lebanon with Military Supplies

On October 27, 2010, the Chinese Embassy in Lebanon donated eight million yuan (US$1.18 million) worth of batteries, tents, and other military supplies to the Lebanese Army. Chinese Ambassador Liu Ziming and Lebanon Army Deputy Chief of Staff Hanna signed an exchange certificate at a formal ceremony. Liu praised the role of Lebanon’s Army in maintaining the security and stability of Lebanon. He also said that China pays close attention to the development of both countries and armies.

Source: Xinhua, October 27, 2010
http://news.xinhuanet.com/world/2010-10/27/c_12708639.htm

Briefings | | October 29, 2010 | Geo-Strategic Trend

China Business Times: U.S. Companies Responsible for China’s Real Estate Bubble

Huanqiu reprinted an article from China Business Times stating that U.S. Wall Street companies are responsible for the real estate bubble in China. China’s real estate bubble is being driven up by speculation on Wall Street. "They use all available tools, sometimes to sing the blues, and other times to flatter the Chinese real estate market. Their sole purpose is to make a profit.” Take MSREFIII International and MSREFIV International (both Morgan Stanley funds), for example. According to the article, 50% of their funds went to China where Morgan Stanley obtained Chinese government support and approval to jointly develop real estate with Chinese partners. They soon bought out their Chinese partners and took over control of the real estate. “They have now sold out their residential and office buildings. … Their profits on paper are at least 100%,” said the article.

Source: Huanqiu, October 15, 2010
http://finance.huanqiu.com/roll/2010-10/1172836.html

Briefings | | October 28, 2010 | Economy/Resources

China Central Bank: Price Increases Cannot be Ignored

China’s central bank, The People’s Bank, issued its third quarter economic analysis on October 27, 2010. The analysis states that, compared to the second quarter, the market fears of an excessive downturn in the economy have receded; China’s economy is showing clear signs of stabilization, but pressure on prices cannot be ignored. The pressure comes from price hikes in food, the reform of income distribution and resource prices, as well as uncertainty about bulk commodity prices in the international market.

Source: Xinhua, October 27, 2010
http://news.xinhuanet.com/2010-10/27/c_13578505.htm

Briefings | | October 28, 2010 | Economy/Resources

China Review News: Digesting the Twelfth Five-Year Plan

A China Review News article on October 24, 2010, reports that China’s Twelfth Five-Year Plan focuses on “transitioning.” It describes China’s current economy as having an imbalance between domestic and foreign demand, and expects this imbalance to reverse, that is, for domestic demand to rise, accompanied by a fall in foreign demand. The Plan targets a change from an economy featuring low-cost manufacturing to one with high value-added production.

The article lists five potential changes for the coming five years: 1. Economic growth decelerates and local government’s “GDP fever” pursuit cools down, as the eight percent GDP growth rate is no longer Beijing’s highest priority. 2. The domestic market is to expand, especially in the luxury goods and culture-related industries. 3. Rural areas are to see major development. 4. Economic prosperity is to shift from export-oriented coastal provinces to the central and the western provinces. 5. China is to develop new energy and “green” energy.

Source: China Review News, October 24, 2010
http://gb.chinareviewnews.com/doc/1014/8/2/6/101482660.html?coluid=53&kindid=0&docid=101482660&mdate=1024081019

Briefings | | October 27, 2010 | Government/Politics

PLA Live-Fire Exercise in Tibet

According to a People’s Liberation Army publication, the Tibet Military Region Command conducted a live-fire military exercise in late Fall, with the actual date not disclosed. The exercise took place at a 4,700 meter elevation and involved troops from the air force, armored units, artillery, and electronic warfare units. The exercise showcased fighter jets, armed helicopters, artillery, the electromagnetic system, a new type of tank, and a new air defense system that was just deployed to the military.

Source: The PLA Pictorial
http://www.plapic.com.cn/txt/201010b/20101005-1B.htm

Briefings | | October 27, 2010 | Defense/Military

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.”

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