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China’s Income Disparity Widening

According to China Economic Weekly under the People’s Daily, since the opening of the economy began, China has transitioned from a country with a narrow income disparity to being one of those with the largest income disparity. “On the surface, it is a matter of the economy, but at a deeper level, it is a matter of system and policy.” A proposed guidance on redistributing revenue was submitted to the State Council for approval close to six months ago and it remains pending. The guidance was meant to “smooth the distribution structure among the State, enterprises and the people.”

The BBC reported that China’s disparity "has gone beyond the reasonable limit" according to many commentators. There is a strange situation existing in China. That is, while the poor have increased hatred and dissatisfaction, the rich are also complaining about society due to the increasing violence and crimes.

Source:
1. Chinese Economic Weekly, 41th Issue, 2009
http://paper.people.com.cn/zgjjzk/html/2009-10/28/content_370333.htm
2. BBC Chinese, October 27, 2009
http://www.bbc.co.uk/zhongwen/simp/indepth/2009/10/091026_china_richandpoor.shtml

Xinhua: Chinese Navy Must Maintain an Offshore Presence

To establish China’s naval strategic offshore support points has become increasingly important, says Xinhua. "Whether for anti-piracy, anti-terrorist attacks, or strategic deterrence, reliable anchors overseas are indispensable. Even for aircraft carrier groups, and their replenishment of supplies and crew, these support points are indispensable." "From a strategic perspective, in the past year, the convoy operations in Somalia and the Gulf of Aden were merely the Chinese navy’s ‘ocean display,’ and were far from a real offshore presence. China has a long way to go to build strategically secured offshore channels."

Source: Xinhua, October 27, 2009
http://news.xinhuanet.com/herald/2009-10/27/content_12336839.htm

Study Times: What does the U.S. Signing of the TAC mean?

Asian countries want to leverage the U.S. to balance China’s growing power and the U.S. wants to strengthen its influence there, too, comments Study Times regarding U.S. Secretary of State Clinton’s signing of the Treaty of Amity and Cooperation. The article dismissed the speculation that this is a major challenge to China. "The current economic interdependence of China and the U.S. has gone beyond the economic relations between any two great powers." But then it said, “However, undeniably, recently the Philippines, Vietnam, Malaysia and other countries that have intensified disputes and conflicts with China over the ownership of the South China Sea Islands want to leverage the power of the United States to balance China’s influence. The U.S. is more than willing to participate.”

Source: Study Times, October 26, 2009
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=1&id=3003&nid=10940&bid=2&page=1

Eight-Episode TV Documentary Series: Preparing For Danger In Times Of Safety, Episode Two

{Editor’s Note: In June 2006, Beijing released an eight-episode TV documentary series: Preparing For Danger In Times Of Safety – Historic Lessons Learned from the Demise of Soviet Communism. It was a research project conducted by the government think tank, the Chinese Academy of Social Science. Afterwards, the Chinese Communist Party instructed party members across the nation to watch the series and launch serious discussions. The script of the prelude of the documentary quotes Hu Jintao’s words, “There are multiple factors contributing to the disintegration of the Soviet Union, a very important one being Khrushchev throwing away Stalin’s knife and Gorbachev’s open betrayal of Marxism-Leninism.” The full text of the narratives has been translated. What follows is the second episode.}

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Outlook: Communist Leaders Cognizant of a Crisis Disturbing the Party

The China News Agency republished an article from Outlook magazine, which claimed that China’s top party leaders signaled that the party construction effort is critical for the Party to stay in power. ["Party construction effort" is a Chinese Communist Party (CCP) term referring to party development and improvement. — Ed.]

The CPC’s Fourth Plenary Session of the 17th Central Committee outlined several party construction actions to resolve the current quandaries. The quandaries were identified as “the most important and most dangerous” by the top leaders. Experts deduce that the specific wording indicates that the CPC is cognizant of the crisis.

One worrisome concern is that party members and cadres no longer believe in Marxism and have no confidence in the Chinese Representation of Socialism. Other issues include the party officials’ corruption, as well as problems with party discipline, the official selection process, and officials’ performance.

Source: China News Agency, October 19
http://chinanews.com.cn/gn/news/2009/10-19/1917889.shtml

Xi Jinping Signals that Jiang Zemin Still Has Significant Power

Xinhua reported that Xi Jinping, China’s Vice President and internally selected successor to Hu Jintao, gave two books as gifts to Chancellor Angela Merkel when he met with her. The two books were written by Jiang Zemin; they were on energy and information technology; and they had been translated into English. Xi also passed Jiang’s regards and wishes to her [Ed: Jiang has no prior personal or official relationship with Chancellor Angela Merkel: she was elected in 2005, while Jiang retired in 2004]. Xinhua also reported that when he met with German President Horst Koehler, Xi passed Hu Jintao’s regards to him.

Sources:
1. Xinhua, October 13, 2009
http://news.xinhuanet.com/politics/2009-10/13/content_12219581.htm
2. Xinhua, October 13, 2009
http://news.xinhuanet.com/politics/2009-10/13/content_12219586.htm

Xinhua: China’s Aging Crisis is Deepening

By 1999, Chinese society had entered an aging era when people older than 60 years old made up 10% of the entire population. Ten years later, this figure increased to 12.79 % of the populion, which represents 169 million people.The Ministry of Civil Affairs stated a belief that “China is rushing into an aging society at a speed that is exceeding our imagination.” It was suggested that over the next 25 years, China should be getting ready to develop a strategy to deal with this issue. Development plans, laws and regulations, social and economic policy adjustments – all need to be prepared.

Source: Xinhua, October 26, 2009.
http://news.xinhuanet.com/politics/2009-10/26/content_12328694.htm