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Lack of Core Technology Hinders China’s Dream to Become an Auto Giant

Although China’s annual car sales topped the world at 13.5 million in 2009, it is too early to celebrate.
The real winners, according to the author, are actually foreign companies.

China’s automotive industry depends heavily on foreign companies to supply parts. Especailly regarding auto electronics, engines, and transmissions, foreign company’s market share is 90% .

China has yet to have its own brand. Its advantage in automotive production is low cost laborers. he profit margin is quite low. Without its own brands, China’s astronomical auto sales volume can only help others.

Source: China Business Times, January 20, 2010
http://www.cbt.com.cn/a/lilunpinglun/pangguanzheqing/2010/0120/6346.html

Promote the Communist Party Organization in Private Businesses

A leadership group for Party development in private businesses was formed in Huaibei City, Anhui Province. In a letter to all private business owners in the city, the group demanded that the Party development in private firms should be the responsibility of Party organizations of all levels.

Party members working in those firms are called on to take the lead and become role models.

In Huaibei, as of December 2009, 217 new party branches had been set up in private companies; 184 party members who disappeared into private companies were recovered.

Source: Xinhua, January 16, 2010
http://news.xinhuanet.com/politics/2010-01/16/content_12820553.htm

Who Pushed Obama to Sell Missiles to Taiwan?

After the U.S. government approved the Lockheed-Martin sale of Patriotic air defense missiles to Taiwan, China denounced the deal. Obama’s “face change” two months after his successful China visit was due to a joint lobbying by the government, the Congress, the Pentagon and defense contractors.

Several key players were named as key promoters for the missile sale: Lockheed-Martin CEO Robert Stevens, Senator John McCain, Deputy Secretary of Defense William Lynn, U.S.-Taiwan Business Council President Rupert Hmmond-Chambers and Taiwanese businessman Li Hua-Der.

The author believes that this deal triggered a red light to Sino-American relationship.

Source: International Herald Leader, January 18, 2010
http://news.xinhuanet.com/herald/2010-01/18/content_12828519.htm

Foundation Laid for Chinese Large Aircraft Growth Facility

On January 12, construction begam om Minhang, Shanghai, for a Chinese Large Aircraft Development Facility. Project completion is earmarked for 2013. The building will have 300,000 square meters, and the cost will amount to RMB 3.23 billion.  

The primary mission for this center is research and development for the production of a 150-seat passenger aircraft C919 engine. It is projected that engines for 250-seat level aircraft will also be built in the future at that facility. It was reported that China is the third country, after the U.S. and France, that has the know-how and expertise to assemble world class aircraft engines.

Source: Xinhua, January 12, 2010
http://news.xinhuanet.com/mil/2010-01/12/content_12796745.htm

Xinhua: Achieving Number One in Exports May Invite More Protectionism

The German Federal Bureau of Statistics predicted in December 2009 that German exports in 2009 would reach US$1,170 billion, while China would exceed US$1,200 billion. As the number one export country in the world, China may face more protectionism from other countries.

The greatest pressure may come from the U.S., which took a number of steps in 2009, claiming anti-dumping and anti-subsidy activities. Chinese economists believe that U.S. protectionism is “absurd” because the US-China trade deficit is the result of the U.S. refusal to sell China high-tech products. Another major pressure source is the EU, which also initiated a great number of anti-dumping investigations against China in 2009. In addition, a number of actions were taken by Argentina, India, Brazil and Mexico against China. It is believed that protectionism initiatives against China will continue to increase. 

Source: Xinhua, January 12, 2010
http://news.xinhuanet.com/fortune/2010-01/12/content_12797144.htm

Preferential Treatment of U.S. Citizens Triggered Protests in Haiti

China News Service cited a report by the Central News Agency (CNA, Taiwan) claiming there were protests because U.S. citizens received preferential treatment when using the U.S. controlled Haiti airport. Apparently,  the airport became U.S.-only and aircrafts from other nations had a difficult time to get landing rights. It was reported that a few French citizens had to spend the night at the airport because they were not allowed to board their flight, while a great number of U.S. passengers were allowed to leave. The U.S. Embassy in Haiti denied any priority given to U.S. citizens. There are around 40,000 to 45,000 U.S. citizens in Haiti.

Source: China News Service, January 17, 2010
http://www.chinanews.com.cn/gj/news/2010/01-17/2076164.shtml

Combat Training on Qinghai-Tibet Plateau in -20 Degrees Centigrade

On January 4, 2010, about ten thousand PLA soldiers and one hundred military officials from the Tibetan military region armed with one thousand armored vehicles had a combat drill on the Qinghai-Tibet plateau in minus 20 degrees centigrade weather. The purpose was to strengthen the PLA’s capability to respond to emergencies in severe cold conditions, reported the PLA Daily on January 10, 2010. 

Source: PLA Daily, January 10, 2010
http://www.chinamil.com.cn/jfjbmap/content/2010-01/10/content_17734.htm

China Boycotts U.S. Companies for Arms Sales to Taiwan

China’s official website, www.huanqiu.com,  reported on January 11, 2010, that Raytheon, one of America’s major arms dealers, has a notorious record of selling arms to Taiwan. The Chinese government has taken sanctions against Raytheon, which has not received any orders from China since 2004 and had to withdraw completely from China’s Mainland market.

Lockheed Martin Corporation, another U.S. military industrial enterprise involved in arms sales to Taiwan, has suffered the same fate in China. Like Raytheon, Lockheed Martin faced severe sanctions from China and lost its market in China.

Source: Huanqiu, January 11, 2010
http://opinion.huanqiu.com/roll/2010-01/684617.html