Chinascope – Page 1220

Study Times: Regionalizing RMB will Promote Asian Economies

On June 1, 2009 the Study Times wrote that China should push Reminbi regionalization starting from border trade settlements and direct investment in neighboring countries. Study Times is the journal of the School of the CCPC. The article believes that this step is the key to Asian economy. In doing so, “China should leverage the existing bilateral currency settlement agreements with Korea, Hong Kong and Malaysia to further deepen and expand RMB cooperation in the region. Moreover, China should take advantage of financial markets in Hong Kong in engaging in RMB offshore business, thus making Hong Kong the hub for distribution of RMB to neighboring countries.”

Source: Study Times, June 1, 2009
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=1&id=2685&nid=9756&bid=4&page=1

Briefings | | June 9, 2009 | Geo-Strategic Trend

China Shows Its Anti-stealth Airplane Radar

Xinhua republished an article by the Global Times reporting that on April 1, 2009, at the “2009 Fifth World Radar Expo,” China showed photos of the DWL002 passive detection radar system, China’s newest anti-stealth airplane radar system. DWL002 has the following characteristics: high crypticity; a long detection range; a strong anti-interference capability; good mobility; a wide working frequency; flexible signal adaptability; highly precise locationing; and target identification capability.

The article stated that DWL002 radar system is the most advanced anti-stealth airplane radar system in the world. Its main performance measures are superior to radar systems developed by other countries in the same category. This system is likely to be the number one choice for many countries that are facing the threat of (U.S.) stealth airplanes.

Source: Xinhua, May 22, 2009
http://www.xinhuanet.org/bencandy.php?fid=5&id=50518

Briefings | | June 8, 2009 | Defense/Military

Outlook Article: China Should Invest Up To 1,000 Bn Yuan In Africa

According to Outlook Weekly, a Xinhua publication, a Government think tank proposed that China spend 500 to 1, 000 billion yuan of its foreign exchange reserve on Africa. The Director of the Center for Economic Security Studies of China’s Institute of Contemporary International Relations wrote that this funding infusion may be implemented through “direct investment, donations, low or zero interest loans, export financing or the Islamic model of zero interest in exchange for profit sharing.” The proposed primary areas of investment are infrastructure projects, improvement of sanitary conditions, education and manufacturing.

Source: Outlook Weekly, June 1, 2009
http://news.xinhuanet.com/politics/2009-06/01/content_11467829.htm

Briefings | | June 5, 2009 | Geo-Strategic Trend

Beijing News: Cheap Labor is the Chinese Economy’s Achilles’ Heel

Beijing News recently published an article by well known scholar Ma Guangyuan on the cost of Chinese labor. The article quoted the results of a study by the Chinese central bank. In Dongguan, a major manufacturing city in Guangdong Province, the minimum wage standard went up from RMB 350/month in 1994 to 770/month in 2008 – an annual increase rate below 5%.

The article pointed out that the "miracle" of the "Chinese Model" is obviously built on a "low wages in exchange for profit" basis. As a result, consumer spending remains low. For the past 30 years, the average annual increase in China’s GDP rate has been far higher than the increase in the rate of consumer income. Cheap labor is more of an Achilles’ heel than the "core competitive advantage" of "Made in China".

Source: Beijing News, May 30, 2009.
http://www.thebeijingnews.com/comment/letters/2009/05-30/008@013649.htm

Briefings | | June 5, 2009 | Economy/Resources

Hand-Foot-and-Mouth Disease Spreading in China

Epoch Times reported on May 26 that, based on a reliable source, it may be concluded that an unspecified epidemic of either Hand-Foot-and-Mouth Disease (HFMD) or influenza A(H1N1) is widely spreading in China. Since March, people have placed many orders for first-aid equipment in China. Medical equipment used in ERs and on hospital wards is also in hot demand. The factories producing this type of equipment and the associated pharmaceutical materials are working overtime to fill the orders.

Source: Epoch Times, May 26, 2009
http://www.epochtimes.com/gb/9/5/26/n2538281.htm

Briefings | | June 5, 2009 | Grapevine

China’s Bank Loan Risks Are Soaring

The credit rating organization, Fitch Rating, said that Chinese banks are taking huge risks in providing loans to support the government’s plan to stimulate the economy. In the first four months of this year, under the push of the government’s infrastructure development plan, Chinese banks offered loans in the amount of Renminbi 5,200 billion yuan (762 billion dollar), surpassing the 4,900 billion yuan total bank loans for last year. Aggressively targeting profits is another reason for the increase in bank loans.

The Bank of China’s quarterly report said that its supervising arm is following up on the actual usage of the loans. Fitch Rating’s interpretation is that the government has lost control of the loans; otherwise it would know where the money went. It also pointed out that as the assets quality at China’s banks starts to deteriorate, more problems will surface down the road.

Source: BBC Chinese, May 21, 2009
http://news.bbc.co.uk/chinese/simp/hi/newsid_8060000/newsid_8062600/8062633.stm

Briefings | | June 4, 2009 | Economy/Resources

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.

CCP, Master of Hostage Diplomacy