Chinascope – Page 1116

China’s Central Bank Increased the Required Reserve Ratio

On October 11, 2010, China’s central bank, the People’s Bank of China, notified six banks that it will increase the required reserve ratio for them by 50 basis points. The six banks include the four major state-owned banks and 2 publicly traded banks, China Merchants Bank and China Minsheng Bank. “The market anticipates this action will only last for 2 months. The main purpose is to react to the high number of new loans that banks issued in September of this year.”

Governor Zhou Xiaochuan said that there hasn’t been enough evidence to show that the quantitative tools that the central bank adopts, including reserve ratio and open market operation to absorb liquidity, cannot meet the goal of controlling inflation.

Source: China Review News, October 12, 2010
http://gb.chinareviewnews.com/doc/1014/7/1/6/101471619.html?coluid=10&kindid=253&docid=101471619&mdate=1011170343

[Ed: China Review News is a Hong Kong based Chinese government news agency with a focus on international affairs.]

Briefings | | October 13, 2010 | Economy/Resources

Zhou Yongkang Visited North Korea

Zhou Yongkang, a senior Communist official and one of the nine-member standing committee of the Politburo, led a Chinese delegation to attend North Korea’s 65th anniversary celebration of the ruling Workers’ Party of Korea. During his 3-day visit from October 9 to 11, Zhou met with Kim Jong-Il four times. Zhou also “had extensive contacts with the newly elected Workers’ Party leadership.” Zhou also watched a military parade and the evening celebration performance. Kim Jong-Il said that he and the central group leadership would like to visit China often.

[Ed: The newly elected leadership may refer to Kim Jong-Un, Kim Jong-Il’s selected heir].

Source: Xinhua, October 11, 2010
http://news.xinhuanet.com/2010-10/11/c_12648095.htm

Briefings | | October 13, 2010 | Geo-Strategic Trend

People’s Daily: Sino-Turkey Joint Military Training

The People’s Daily website published an article consisting of reports from the U.K., U.S., Russia, and Turkey on the military exchange that China held with Turkey from September 20 to October 4. It stated that “this military exchange is a ‘joint training’ but not a ‘joint exercise.’” China flew its Su-27 planes over Pakistan and Iran to land at Turkey’s air force base, a journey of over 4,000 miles, without aerial refueling.

Source: People’s Daily website, October 10, 2010
http://military.people.com.cn/GB/42969/58519/12910945.html

Briefings | | October 13, 2010 | Geo-Strategic Trend

Deputy Minister of Water Resources: Serious Water Shortage in the North

Hu Siyi, the Deputy Minister of Water Resources, recently announced that the situation regarding the lack of water in northern China is getting worse due to the double pressures of global climate change and large-scale economic development. For example, the Haihe River Basin surface water level dropped 41% during the past two to three decades. The urbanization of China is speeding up rapidly. Meanwhile, the acceleration of industrialization is resulting in a rapid increase in water usage. During the past four years, just the energy and heavy chemical industries alone consumed 10 billion cubic meters more water. Hu believes that water conservation faces unprecedented challenges.

Sources: Xinhua, October 7, 2010
http://news.xinhuanet.com/politics/2010-10/07/c_12633704.htm

Briefings | | October 12, 2010 | Economy/Resources

Xinhua: Mission 2010 Exercise Authorized

Based on the Annual Plan of Joint Exercises, the Central Military Commission authorized the Mission 2010 cross-regional group army mobility exercise, which started on October 10, 2010. The exercise was a response to Hu Jintao’s call for “Innovative Development in Military Exercises.” The basic goal of this exercise was to improve information system based combat capabilities. The exercise covered the Beijing, Lanzhou, and Chengdu Military Regions and the Air Forces as well as the Army Air Corps. The total number of troops involved was more than 30,000, and the total mobility distance covered was over 10,000 kilometers. In addition, civilian passenger and cargo airplanes were coordinated to participate in this exercise.

Source: Xinhua, October 9, 2010
http://news.xinhuanet.com/2010-10/09/c_13549165.htm

Briefings | | October 12, 2010 | Defense/Military

The Party Establishes its Leadership in China-Owned Enterprises and China-Foreign Joint-Ventures

Study Times, a newspaper owned by the press agency of the Party School under the Chinese Communist Party Central Committee, published an article on October 04, 2010, regarding the establishment of the Chinese Communist Party’s core leadership position in enterprises in China.

The article also talked about establishing the party’s position in China-Foreign joint ventures. Following the CCP’s constitution, China’s “Company Law” and “State-Owned Assets Law" allow the Party’s work to run smoothly and effectively in China-Foreign joint ventures.

The article reminds the reader, “Always adhere to the unwavering principle of the Chinese Communist Party’s control over managers, administrators and people.”

Source: Study Times, October 04, 2010
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2010/10/04/08/08_38.htm

Briefings | | October 11, 2010 | Government/Politics

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

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”