Chinascope – Page 510

South Korean Duty-Free Stores Saw Record High Sales

Well-known Chinese news site Sina recently reported that South Korean duty-free stores experienced a major loss of customers last year due to the conflict with China on the issue of deploying the U.S. THAAD missile defense system. For example, in the month of November, Chinese visitors to South Korea declined by 42.1 percent. Chinese visitors were the primary buyers at duty-free stores; the headcount reduction caused major concerns earlier last year. However, last November’s nearly US$1 billion in duty-free sales set a historic high for November. This became a typical situation in almost all months last year and duty-free stores achieved their best sales records when having the lowest number of Chinese visitors. Analysts found that the high sales volume were supported by the Chinese proxy shopping channels, which allowed Korea-based agents to make purchases for their Chinese buyers when paid a small fee. The duty-free stores saw a significant increase in sales through these channels.

Source: Sina, January 13, 2018
http://k.sina.com.cn/article_5895814239_15f6afc5f001002glv.html?cre=newspagepc&mod=f&loc=2&r=9&doct=0&rfunc=100

Briefings | | January 22, 2018 | Geo-Strategic Trend

China News: China’s Rating Agency Lowered the Sovereign Rating of the U. S. Dollar

China News recently reported that China’s rating agency, the Dagong Global Credit Ratings, just lowered the sovereign rating of the U.S. Dollar from A- down to BBB+. The outlook for the U.S. sovereign rating was marked as negative. Dagong explained that this move was due to the fact that the U.S. capability of paying back debts significantly weakened after the newly passed tax cut bill. The U.S. government’s credit is directly associated with the amount of tax it collects, which is the primary source for backing its debts. Dagong expressed its belief that the U.S. Federal government’s income will decline due to the tax cut, while defense spending and infrastructure investment will see massive increases. The U.S. deficit is expected to climb higher in the foreseeable future. Also, the promised upcoming U.S. interest rate hikes will further worsen the situation. The Chinese government certified Dagong’s rating qualifications.

Source: China News, January 16, 2018
http://www.chinanews.com/cj/2018/01-16/8425496.shtml

Briefings | | January 22, 2018 | US-China Relations

Bangladesh Government Terminates Contract with CHEC and Adds CHEC to Its Black List

VOA reported that, according to The Daily Star of Bangladesh, the Finance Minister of Bangladesh told the reporter that Bangladesh has canceled the Dhaka-Sylhet road expansion project that was awarded to the China Harbour Engineering Company Ltd. (CHEC). CHEC has been added to the Bangladesh blacklist for alleged bribery of a Bangladesh official and is forbidden from participating in any future projects in Bangladesh. CHEC is a subsidiary of the China Communications Construction Company Ltd. (CCCC) and is a star company in China’s “one belt one road” project. A news article from the Indian media The Print stated that there was also a dispute about the total amount of the project where CHEC proposed a cost that was twice the amount that the Bangladesh Highway Department estimated. The Dhaka-Sylhet road project is one of the US$2.1 trillion investment projects that Xi Jinping signed with Bangladesh when he visited in October 2016.

According to The Daily Star, this is not the first time that CHEC attempted to bribe Bangladesh officials. The CHEC’s last attempt at bribery cost the sons of two Bangladesh senior officials a sentence to six years in jail. China is the largest country to provide foreign aid to Bangladesh. Currently it has several other projects including a highway, an Industry Park, and a harbor expansion going on in Bangladesh. The Daily Star reported that the termination of CHEC contract does not affect these projects.

Source: Voice of America, January 19, 2018
https://www.voachinese.com/a/bangladesh-blacklists-20180119/4215741.html

Briefings | | January 22, 2018 | Geo-Strategic Trend

Summary of the Recent Amendments to the Constitution

An article published on Haiwainet summarized the amendments to the constitution which were passed at the second plenary session of the 19th Party Central Committee held on January 18 and 19. According to the article, four revisions have been made since the first Constitution was adopted in 1954. They were in 1988, 1993, 1999, and 2004.

Below is a summary of the amendments made at the recent plenary session:
1) Xi Jinping Thought on Socialism with Chinese Characteristics was the result from the latest achievements of Marxism in China. It is 21st century Marxism and should serve as the guiding principal for the party and the nation to follow on a long term basis.
2) The leadership of the Chinese Communist Party is the most essential feature of socialism with Chinese characteristics and the greatest advantage of the socialist system with Chinese characteristics. We must uphold and strengthen the party’s leadership over all work.
3) Form “five developments” in “economic, political, cultural, social, and ecological civilization” by using the concepts of “innovation, coordination, greenness, openness, and sharing” to develop China into a Well-off Society by 2020, a basic socialist modernized nation by 2035, and a powerful modern socialist country by the middle of this century. At the same time, we also need to realize the great renaissance of the Chinese nation. It is of great significance to inspire and guide the entire party and the people as well as the people of all nationalities to make a concerted effort.
4) Adhering to the road of peaceful development, adhering to the opening-up strategy for mutual benefit, and promoting the development of a common community of human beings are of great significance in promoting the lofty cause of mankind’s peaceful development.
5) The reform of the state supervisory system is a major reform of the political system that is related to the overall situation. It is a major policy-making plan for strengthening the self-supervision of the party and the state. It is necessary to establish a law on an anti-corruption work organ under the unified leadership of the party; to establish a centralized, authoritative, and efficient national surveillance system; and to achieve the full coverage of all public officers exercising their public authority.

Source: Haiwainet, January 19, 2018
http://opinion.haiwainet.cn/n/2018/0119/c456317-31240914.html

Briefings | | January 22, 2018 | Government/Politics

Xinhua: Xi Vows to Apply Measures to Combat Corruption to Achieve Overwhelming Victory

Xinhua reported that, on January 11, Xi Jinping made an important speech at the second plenary Session of the 19th Central Committee. Xi analyzed the existing anti-corruption environment and vowed to continue to “fix the issue on the surface while looking for the root cause in order to achieve an overwhelming victory in combating corruption.” Xi listed the following six targeted areas:
1) Be persistent with zero tolerance on the anti-corruption effort and with 100 percent coverage. Where corruption is involved, apply restraint, pressure, and threats. Investigate both parties – those who offer and those who accept – bribes. Clean up past due corruption cases and minimize the increases in the number of corruption cases.
2) Change the focus of the anti-corruption effort so it shifts more towards the grassroots level and apply severe remediation on corruption cases among the officials who work closely with the general public.
3) Tackle gang organizations and the “protective umbrella” behind them.
4) Increase collaboration with international legal teams to threaten the corrupt criminals.
5) Make the officials fearful and conscious so they are afraid of corruption and don’t want to be corrupt.
6) Launch a reform of regulations and form effective systems to cut off the network among the interested parties while enforcing legal restrictions and supervision.

Source: Xinhua, January 19, 2018
http://www.xinhuanet.com/politics/2018-01/19/c_1122281826.htm

Briefings | | January 22, 2018 | Government/Politics

People’s Daily: Firmly Grasp This Promising Historic Opportunity

People’s Daily published a commentary on its front page calling upon China to take full advantage of the promising historic opportunity it has to realize the “Chinese Dream.” The article is a follow-up to the speech that Xi Jinping gave on January 5 at the seminar on studying and implementing the main ideas of the 19th CPC National Congress, where he stated that China is at a period of promising historic opportunity.

The commentary stated, “(This historic opportunity) is the inevitable change in the world over the centuries. In today’s world, ‘democratic deficits,’ ‘governance deficits,’ and ‘development pitfalls’ have come one after the other. Such issues as polarization between the rich and poor, terrorism, and climate change have been emerging constantly. The international political and economic system dominated by capitalism is displaying multiple disadvantages. The global governance system is undergoing profound changes. A new international order is being built. What’s wrong with the world? Where do humans go? These problems are distressing and confusing to politicians, scholars, and the general public all over the world. However, history has not ended. The practices in China have provided a completely new choice for solving the common problems of mankind. Today, as mankind is becoming a common community of destiny, the world has never been so concerned about China and so much in need of China. This has opened up a vast strategic space for us to adhere to peaceful development and gain advantages.”

“This historic period of opportunity encompasses all dimensions, not only in economic development but also in acceleration of the revolution in science and technology and industry, increasing the influence of Chinese culture. There are also more applause given to China’s wisdom and China’s programs. … From an internal point of view, China’s development has entered the stage of qualitative improvement after the accumulation of quantities and has progressed from a phase of rapid growth to a period of high-quality development. The Chinese wheels are now being driven out of the historical gorges and into the vast waters of the vast sea. From the perspective of the world, ‘a world of chaos’ is in stark contrast to ‘the orderly rule of China.’ The world’s eyes are moving eastward and the scenery of China has become the vision of more and more countries.”

Source: People’s Daily, January 185, 2018
http://paper.people.com.cn/rmrb/html/2018-01/15/nw.D110000renmrb_20180115_6-01.htm

Briefings | | January 18, 2018 | Government/Politics

Global Times: The U.S. House Just Passed a Bill to Destroy Taiwan

Global Times recently published a commentary right after the U.S. House of Representatives passed the Taiwan Travel Act. The Act encourages exchange visits between the United States and Taiwan on “all levels.” If this Act were to be signed into law, it would signal a fundamental change in U.S. Taiwan policies. It would allow high ranking Taiwanese government officials, such as the President, the Minister of Foreign Affairs, and the Minister of Defense to visit the United States. The current law in effect, the Taiwan Relations Act, has governed the flexible relationship between the States and Taiwan for decades. It does ban the high-level exchange visits of government officials. Although the Senate has not yet passed the Taiwan Travel Act, the fact that it was even discussed in the House used to be flat out unimaginable. A lot of “power players” in the U.S. wish they could reactivate the Taiwan issue to gamble with China. However, the time for the U.S. to dominate Taiwan Strait affairs has long ended. The new law could lead to a broken balance that would force China to take actions big enough to cause the same level of damage to the U.S. In fact, a potential military move could destroy Taiwan.

Source: Global Times, January 10, 2018
http://opinion.huanqiu.com/editorial/2018-01/11512000.html

Briefings | | January 16, 2018 | Geo-Strategic Trend US-China Relations

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.”

The CCP’s Performing Arts Troupes in the U.S.