Chinascope – Page 1106

Xinhua: China Attains the Number Three Position in IMF Voting Power

On November 5, the Managing Director of the International Monetary Fund (IMF) announced that the IMF Executive Board approved the Far-Reaching Governance Reform Plan. Once implemented, China’s voting power will reach 6.07%. It will surpass Germany, France, and Britain, being behind only the U.S. and Japan. China’s current voting share is 3.65%. The planned reform will shift 6% of the overall shares to emerging markets. Europe will also give two seats on the Executive Board to emerging market countries to increase the representation of those countries. China suggested that this reform just reflects the reality of the world economy. The “historic agreement” was reached in October, during the G20 conference of treasury ministers and central bank governors.

Source: Xinhua, November 6, 2010
http://news.xinhuanet.com/2010-11/06/c_12745053.htm

Briefings | | November 16, 2010 | Economy/Resources

China News Service: Chinese and Romanian Defense Ministers Met

On November 11, 2010, the Chinese Defense Minister, Liang Guanglie, met with the Romanian Defense Minister, Gabriel Oprea. Liang suggested that, despite international vicissitudes, since the two countries established diplomatic relations 61 years ago, the China-Romania relationship has never had any problems. Liang thought that relations between the two armies have developed rapidly over the past few years. Frequent contact among high ranking military officers of the two countries has been amiable. Oprea said he expects to expand and deepen the practical cooperation between the two armies in various ways.

Source: China News Service, November 11, 2010
http://www.chinanews.com.cn/gn/2010/11-11/2650497.shtml

Briefings | | November 16, 2010 | Geo-Strategic Trend

China Review News: China Should Purchase Strategic Materials Rather Than U.S. Debt

On November 12, 2010, China Review News published an article suggesting China use its foreign exchange reserves to purchase strategic materials instead of U.S. debt. The author explained his reasoning as follows:

According to the U.S. Department of the Treasury, at the end of August 2010, China’s holdings of U.S. debt amounted to $868.4 billion. If the U.S. Treasury yield declines by 20%, China will lose 180 billion U.S. dollars, an average loss of $138 per capita. However, China must find investment channels to maintain the value of its U.S. $2.45 trillion in foreign exchange reserves.

China should take the advantage of the low prices of energy resources and commodities in the global market and use its foreign exchange reserves to purchase materials for strategic reserve of resources, such as energy and mineral resources.

Source: China Review News, November, 12, 2010
http://gb.chinareviewnews.com/doc/1015/0/1/5/101501543.html?coluid=148&kindid=0&docid=101501543&mdate=1112002419

Briefings | | November 15, 2010 | US-China Relations

CNS: Chinese Ambassador: RMB Exchange Rate Is Not the Cause of the US-China Trade Imbalance

On November 13, 2010, China News Service published the contents of a speech that Zhang

Yesui, China’s Ambassador to the United States, gave at the University of Nebraska in Lincoln. In his speech, Zhang observed, “The trade imbalance between the U.S. and China is not caused by the under-valued exchange rate of the RMB, but by structural differences in trade and investment.”

Zhang suggested that a comprehensive approach to easing the trade imbalance between China and the U.S. was in the works: First, China is trying to achieve economic growth through boosting domestic demand. The 12th Five-Year Plan, which is being drafted, emphasizes the continued effort to expand domestic demand. Second, the U.S. should release its restrictions on the export of high-tech products to China. Third, the U.S. should encourage Chinese businesses to invest in the U.S.

Source: China News Service, November 13, 2010　
http://www.chinanews.com.cn/gn/2010/11-13/2653942.shtml

Briefings | | November 15, 2010 | US-China Relations

International Herald Leader: China Exhibits Three Symbols of Being a Great Power

[Editor’s Note: The following is a translation of an official media article that appeared in the International Herald Leader on October 11, 2010. It was written as a rebuttal to the September 26 New York Times article, “Three Faces of the New China.” [1] According to the article, “three symbols/indications that a nation is powerful are: that it possesses a full set of armor; it has the capacity to serve; and it has the ability to protect.” It criticized the U.S. by asking, “Or is the U.S. a ‘deadbeat,’ a ‘troublemaker,’ or a ‘blackmailer,’ who is counting on the whole world to pay the price for its debt problems, who vigorously eggs on Asia-Pacific countries to engage in a naval arms race, and who recognizes one China, yet forces a province in China to purchase U.S. weapons that cost an arm and a leg?”] [2]

Continue reading →

Reports | | November 12, 2010 | Report

Qiushi: Distinguishing Four Major Dichotomies Is the Focal Point of Political Thought Education

Qiushi, a journal of the Chinese Communist Party, published a theoretical article about political thought education. The article stressed that political thought education is a political advantage of the CCP and of socialist countries; it is the major avenue to spread the CCP’s theory and policies, to fortify and expand socialist mainstream ideology, and to provide the spiritual force for economic and social development. In the current profoundly changing international and domestic situation, and with the area of ideology facing complicated situations, it is important to utilize political thought education to help people to “distinguish the four major dichotomies.” The four major dichotomies are: Marxism versus anti-Marxism; a mixed economy that is led by Chinese-style socialist public ownership on the one hand, and an economic order that is dominated by either private capital or total state ownership on the other; democracy under socialism with Chinese characteristics versus Western capitalist democracy; and socialist thought and culture versus feudal and corrupt capitalist ideas and culture.

The editor added a note saying that “distinguishing the four major dichotomies” manifests the fundamental requirement of socialist ideology.

Source: Qiushi Journal, November 9, 2010　
http://www.qstheory.cn/zz/zgtsshzyll/201011/t20101109_56052.htm

Briefings | | November 12, 2010 | Government/Politics

The Second Stage of the Currency War Is China’s Biggest Worry

China Business News published an article in which Mei Xinyu, a scholar at the Research Institution of the Ministry of Commerce, asked two questions. What will the “currency flood” produced by the core country (the U.S.) bring to China? What effects and consequences will the “currency war” have?

The article said that currency depreciation and loosening of the currency supply is only the first stage of the currency war. The second stage of the currency war, when the core country re-tightens the currency policy, will create the real blow. Looking at a longer time frame, pressure from the export of inflation is not the biggest blow of the currency flood. The second stage of–currency re-tightening–will bring about massive reversal of capital flow and a debt crisis.

Source: China Business News, November 8, 2010　
http://www.yicai.com/news/2010/11/591485.html

Briefings | | November 12, 2010 | US-China Relations

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.