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Scholar Calculates ‘Hidden Income,’ Challenged by Statistics Bureau

Wang Xiaolu, a scholar at the National Economic Research Institute under the China Reform Foundation, recently published an article that calculates the 2008 urban residents’ “hidden income” to be as high as 9.26 trillion yuan, about 30% of the year’s gross domestic product (GDP). Wang believes that the existence of gigantic amount of “hidden income” or “grey income” shows the severe distortion of the distribution of national income. The sources of the “hidden income” include corruption, and other means of misappropriation of public funds and private wealth.

On August 24 and 25, the National Bureau of Statistics published two articles on its website, confronting Wang’s study by questioning its methodology.

Source: Jinghua Daily, August 26.
http://epaper.jinghua.cn/html/2010-08/26/content_580292.htm
[Editor’s Note: Jinghua Daily is a Beijing local newspaper]

Ministry of Culture and Agriculture Bank’s Strategic Cooperation

A strategic cooperation between the Chinese Ministry of Culture and the state Agriculture Bank was launched on August 26, at a ceremony where the latter joins the “Culture Industries Investment and Finance Public Service Platform,” a government initiative to help fund culture enterprises. According to Gao Shuxun, the Assistant to the Culture Minister, the central government supports the Bank-Ministry alliance and has become a new model for the financial institutes to support the development of culture industries.

On August 18, the Ministry and Agriculture Bank jointly issued a Notice of Comprehensively Strengthening Strategic Cooperation, which made clear the Ministry of Culture’s policy support of the Agriculture Bank to provide financial services to culture enterprises.

Source: Ministry of Culture website, August 26, 2010
http://www.ccnt.gov.cn/sjzz/whcys/cydt/201008/t20100826_81718.html

SARFT and China Eximbank Struck Deal on Financing Culture Exports

On August 26, China’s State Administration for Radio, Film, and Television (SARFT) and China Eximbank signed a Cooperation Agreement on Supporting and Fostering Key Export Oriented Radio, Film, and Television Enterprises and Projects. Under the agreement, over 5 years, China Eximbank is to provide 20 billion yuan or the equivalent in foreign currency financing support for radio, film, and television enterprises, in addition to multiple financial products and services.

Signers of the deal believe that the agreement, as part of fulfillment of the state’s strategy of Chinese culture “going global,” will help enlarge China’s share of film and TV products in the world market, boosting the nation’s cultural soft power.

In 2009, China sold more than 10,000 hours of TV programming to more than 100 countries, with a total export of US$80 million in film and other broadcasting products and services.

Source: Xinhua, August 26, 2010
http://news.xinhuanet.com/2010-08/26/c_12488797.htm

Ministry of Justice Completes First Round of Training of 2,799 Directors from the Judicial Bureau

The Party Organization Department within the Ministry of Justice organized a 10-day training session, which was attended by 2,799 Directors of the Judicial Bureaus at the city and county levofel. The training encompassed eight sessions and lasted one year.


The main areas of the discussions were carrying out the “three-key-works,” covering the reduction social conflicts, renovating social management, practicing clean government and enforcing social justice. It also included topics on maintaining social harmony, stability, and promoting economic development. Over a dozen experts and professors from the Central Party School conducted forums on strengthening party development at the grass roots level, various measures in handling sudden incidents, and guiding public opinion.

Source: Legal Daily, August 23, 2010
http://www.legaldaily.com.cn/China_legalaid/content/2010-08/23/content_2254379.htm

Party Political Bureau Passed ‘Opinions to Exercise Open Management of Party Affairs’

On August 20, the Party Political Bureau passed the “Opinions to exercise open management of party affairs at the party’s grass roots level," thus giving more flexibility and less restrictions.

The meeting emphasized inter-party democracy and called for exercising open management of party affairs, separation of party affairs from management administration and increasing party members’ rights to participate in party affairs.

Source: China Review News, August 20, 2010
http://gb.chinareviewnews.com/doc/1014/2/0/9/101420920.html?coluid=151&kindid=0&docid=101420920&mdate=0820143209

China Review: Key Focus of the US-China Relationship is Shifting

“The U.S. is shifting the focus of the U.S.-China relationship from the economy to politics, the military and security,” according to a commentary by the China Review, citing the recent U.S.-Korea military exercises, Hilary’s statement and the appearance of the U.S. fleet in the Yellow Sea.

The commentary suggested that the shift was caused by the U.S. inability to have China change its currency exchange rate while China remains as the largest debt holder of the U.S. The recent actions taken by the U.S. in Asia were to take over its lost influence from China, increase its strategic pressure on China and limit China’s overseas expansion.

Source: China Review, August 25,2010
http://gb.chinareviewnews.com/doc/1014/1/9/4/101419440.html?coluid=1&kindid=0&docid=101419440&mdate=0825001912

Thoughts on Justice, Authority, and the Quality of Life

[Editor’s Note: Zhou Yuhua is the president of the Shandong Province Supreme Court. In a recent essay, he stated that China’s courts “lack authority and public trust.” He emphasized the supreme authoritative status of the law, “No organizations or individuals, including the ruling Party and its leaders, can be above the law.”

He believes that bolstering the court system is a key to easing social tension and stabilizing society. He calls for the Communist Party to take over the courts directly, “(In each locality), one of the primary party leaders should also directly become the president of the court. (Doing that) can improve problem solving efficiency and reduce government costs.”

Although the Party has de facto control over the courts, China’s courts are mostly run by relatively junior level cadres whose authority is often challenged or ignored. The author’s proposal could enhance the court system, but it might not help the Party’s preferred image. He discusses another Catch-22 situation in China.

The following is translated from excerpts of the article.] [1]

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Wen Jiabao: Advancing Political System Reform

Wen Jiabao stated “(We) should not only advance economic system reform, but also advance political system reform. Without the guarantee of political system reform, the results of the economic system will be lost, and (China’s) modernization goal won’t be reached.” Wen made this speech when he visited Shenzhen City on August 21, 2010. China News Service reported that Wen’s “political reform” statement has profound meanings behind it.

The Epoch Times pointed out that Wen’s speech exemplified that the discord between the CCP “Reformists” and the “Conservatives” has surfaced amidst an intensified power struggle for the upcoming 18th Party Congress. The “Conservatives,” the majority of whom are the CCP “Princelings,” want to have Xi Jinping as the new President and Bo Xilai as the new Prime Minister. The “Reformists” wish to drive the Princelings out of the power center and endorse Li Keqiang as the President and Wang Qishan as the Prime Minister. Wen’s speech is a strong statement by the “Reformists.” Wen also talked about political system reform during his interview with NHK in Tokyo on June 2.

Sources:
1. China News Service, August 23, 2010
http://www.chinanews.com.cn/hb/2010/08-23/2483336.shtml
2. The Epoch Times, August 23, 2010
http://www.epochtimes.com/gb/10/8/23/n3003233.htm