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China’s First Overseas Military Base Caused U.S. Worries

Well-known Chinese news site Sina recently reported that China’s first military base outside China was officially established on July 11. The Chinese Naval Base at Djibouti is currently serving as a logistics supply provider for the Chinese Navy. The Chinese Ministry of Foreign Affairs emphasized that the Djibouti Base is only a small scale logistics base for peace-keeping missions. It cannot be compared with full-blown military bases that the U.S., France, and Japan have nearby. However, some Chinese analysts have been reading the language between the lines in the U.S. media such as the New York Times for concerns. The analysts expressed their belief that the U.S. was worried about the short distance to the nearby U.S. Camp Lemonnier, which is one of the largest U.S. permanent overseas military bases. Secondly, the U.S. may be worried about its dominant status in the region.

Source: Sina, July 12, 2017
http://dailynews.sina.com/bg/chn/chnpolitics/chinapress/20170712/08197951823.html

China’s SOEs Are the Largest Oil Drilling Contractors in Kuwait

According to an article that China.org published, China’s State Owned Enterprises (SOEs) broke through the domination that the U.S. and the European countries held and became the largest oil drilling contractors in Kuwait, which is considered a strategic partner of China’s “one belt one road” project. The SOEs have built 53 teams in Kuwait and employ over 3,000 Chinese and foreign workers. They own 53 drillers and hold 45 percent of the oil drilling market share. The article claimed that by the end of first quarter in 2017, China’s SOEs will be responsible for a total of 64 projects in the amount US$13.7 billion in Kuwait. The projects range from oilfield services, exploration, refinery, housing, and infrastructure, to telecommunications.

Source: China.org, July 16, 2017
http://news.china.com.cn/2017-07/16/content_41222830.htm

People’s Daily: Eleven Provinces and Cities had a Minimum Wage Increase in 2017

According to an article that People’s Daily published, by July 15, 2017, 11 provinces and cities had raised their minimum wage. The statistics disclosed that both the number of provinces that had a minimum wage increase and the rate of increase were lower than in the past. Take Beijing as an example. The rate of the increase in the minimum wage was only 5.8 percent this year while the rate of the increase in Shanghai was 5 percent. Most regions have minimum wage increases once every two years. Some regions have changed it to once every three years.

The article reported that, in 2012, 25 regions had wage increases that averaged 20.2 percent. In 2013, 27 regions had increases at a rate averaging 17 percent. In 2014 19 regions had increases that averaged 14.1 percent. In 2015 24 regions had increases of 14 percent. In 2016, 9 regions had increases that averaged 10.7 percent. The article cited the reasons for the reduced rate of the wage increases as slowed economic growth in recent years as well as the intent to ease the pressure on businesses in order to maintain their cost competitiveness. According to the list of the minimum wage in 31 regions mentioned in the article, the minimum wage gap varies between regions with those along the coastline ranked in the top five minimum wage regions including Shanghai, Tianjing, Beijing, Guangdong and Jiangsu. The regions in the Southwest, Northwest, and Northeast have a relatively lower minimum wage. The bottom two regions are Tibet and Guangxi Province where the minimum wage of the level 4 job category in Guangxi is only 1,000 yuan (US$141). That amount is less than half of the minimum wage in Shanghai which is 2,300 yuan (US$330).

Source: People’s Daily, July 16, 2017
http://society.people.com.cn/n1/2017/0716/c1008-29407521.html

Liu Xiaobo’s Ashes Cast into Ocean; Family Members “Thanked” Party at the Press Conference

According to articles that Radio Free Asia and Voice of America published, the body of Nobel Peace Prize Winner Liu Xiaobo was cremated on the morning of July 15 and his ashes were cast into the ocean right after the cremation. Six of Liu’s family members were at the funeral, including his wife. None of Liu’s friends were present. At 4:00 p.m. on the 15th, during the press conference that the Shen Yang Municipal office held, Liu’s brother read a written statement. He “thanked” the party and the government twice in his speech and also explained why they “chose” to cast Liu’s ashes into the ocean. Liu’s wife was said to be too weak to be at the press conference. Liu’s brother left after he finished reading the statement and didn’t answer any questions from the media. Liu’s wife and many of his friends received a warning from the security bureau not to attend the funeral. The photo taken at the funeral showed that most of the people at the funeral were government officials and members of the public security bureau. On the day prior to the funeral the spokesperson from the Ministry of Foreign Affairs told reporters that China was against the Noble Peace Prize being awarded to Liu and asked the media not to make any prediction as to whether Liu’s wife will be allowed to travel to Norway to pick up the Nobel Peace Prize that Liu received in 2010. The Nobel Peace Prize committee chairman applied for a visa to come to China to attend Liu’s funeral. Her application was denied because she didn’t receive the invitation from Liu’s family. Ms. Anderson stated that Liu had passed away and she was not able to reach Liu’s wife.

Sources:
1. Voice of America
https://www.voachinese.com/a/liu-xiaobo-ashes-spread-at-the-sea/3945404.html
2. Radio Free Asia, July 15, 2017
http://www.rfa.org/mandarin/yataibaodao/renquanfazhi/ql1-07152017101602.html

Zhejiang Police Use Fake Communication Tower to Gather Mobile User Information

Radio Free Asia reported that the police from Zhejiang Province were found to have set up a fake mobile communication tower to gather mobile user’s information. The fake tower used a high power wireless signal transmission to force mobile devices such as mobile phones to register with it. This allowed the police to obtain mobile user’s information.

A former railroad policeman from Changsha, Hunan Province, commented that the police have long been using communication equipment to gather people’s information. The difference this time is that the police are doing it themselves, instead of going through telecom companies.

Another commentator indicated that it is a nationwide practice for the regime to use similar equipment to gather, monitor, analyze, and extract “useful” information from the general public.

Source: Radio Free Asia, July 2, 2017
http://www.rfa.org/cantonese/news/control-07022017100526.html

Zhu Rongji’s Son: China Has Overbuilt Houses for 300 Million People

Zhu Yunlai (Levin Zhu), son of former Chinese Premier Zhu Rongji, is an outspoken banker in China. He recently commented on China’s housing market.

“Actually according to the Statistics Bureau, if you add each year’s numbers together, China’s current total housing capacity can supply 1 billion people, at an average rate of 30 square meters per person. Counting even people living in small towns, China has only 700 million urban dwellers. That means there is a 300 million over-capacity.”

“The nationwide average housing price is 7,000 yuan (US $1,000) per square meter. The average income for urban residents is 30,000 yuan per year.  Taking out expenses and taxes, 10,000 yuan can be used for house payments. The housing price has way exceeded the general public’s purchasing capability.”

“Then why are houses so expensive? It is because of the financial factor. China has issued 160 trillion yuan. The number is still rising. So the housing price for sure is rising – that’s called asset inflation.”

“People eventually will realize that even if you have the money to buy a property, you won’t be able to sell it later because the general public, that is those who are really in need of a house, cannot afford one. So the housing assets will not increase in value and people may be forced to sell at a loss.”

Source: Sina, June 25, 2017
http://cj.sina.com.cn/article/detail/2192180454/296831?column=realty&ch=9

 

 

China’s Aerospace Industry Faces Serious Problems

On July 2, 2017, China’s second Long March 5 rocket, carrying an experimental communications satellite, failed after it took off. This was the last test of the Long March 5 rocket before being used to launch the Chang’e 5 Lunar Probe later this year.

China had another satellite launch failure on June 19.

Sina republished an article analyzing the quality problem that China’s aerospace industry is facing:

“The young people especially (in the aerospace industry) … fight each other.  … They don’t feel any responsibility for their work and lack a rigorous attitude toward research. Their reports are full of mistakes. They don’t want to take on real work. They only prefer to direct others.”

“The quality of work has dropped dramatically. When similar experiments were done back in the 1980’s, they were reported clearly with thorough analyses. Now the reports have vaguely drawn conclusions and even the author is not sure if his test results are correct.”

“The whole society is like this.” “Good people are not rewarded and those who do nothing are not reprimanded, either.”

Sources:
1. Sina, July 2, 2017
http://news.sina.com.cn/c/nd/2017-07-02/doc-ifyhrxsk1562298.shtml
2. Sina, July 7, 2017
http://cj.sina.com.cn/article/detail/1444893750/310439