Chinascope – Page 602

BBC Chinese: On June 4th Taiwan’s Ruling and Opposition Parties Called for Democracy

BBC Chinese recently reported that Taiwan’s newly elected ruling party the Democratic Progressive Party (DPP) released a statement on June 4th suggesting people on both sides of the Taiwan Strait had nothing to fear from democracy. Although the Mainland had significant economic growth in recent years, at the same time, political and social challenges are piling up. Both the former Taiwanese president Ma Ying-jeou and the new president Tsai Ing-wen issued statements asking for the vindication of the 1989 Tiananmen Square Massacre and for the Communist Party to return more rights to the Mainland people; acts which will win true respect from the international community. Hung Shiu-chu, Chairman of the opposition party, The Kuomintang of China (KMT), also stated that the entire Chinese population on both sides of the Strait is looking forward to the common goal of freedom and liberty. June 4th is the 27th anniversary of the Tiananmen Square Massacre.

Source: BBC Chinese, June 4, 2016

http://www.bbc.com/zhongwen/simp/china/2016/06/160604_taiwan_china_64_dpp_kmt

Briefings | | June 7, 2016 | Geo-Strategic Trend

Caixin: May Manufacturing PMI Showed Continued Slowdown

Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for May, which was 49.2, down 0.2 from April. Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator monitored globally by financial institutions. The PMI report showed that the health of China’s manufacturing sector continued to decline in May, with output and new orders both falling. At the same time, job shedding persisted across the sector, with the rate of reduction remaining close to February’s post-global financial crisis record. Weak demand conditions underpinned further falls in both purchasing activity and inventory holdings in May. The renewed fall in total new business placed with Chinese manufacturers in May is a big concern. Though fractional, it was the first reduction in new work for three months. PMI (Purchasing Managers Index) is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.

Source: Caixin, June 1, 2016

http://pmi.caixin.com/2016-06-01/100950089.html

Briefings | | June 7, 2016 | Economy/Resources

CCDI: We Are Far From Finished with the Anti-Corruption Campaign

On June 4, the Communist Party’s Central Commission for Discipline Inspection (CCDI) published an article in its official journal saying that it is far from finished with the anti-corruption campaign and that it will track down the remaining corrupt officials.

The article said that, as the anti-corruption campaign is in full swing, there are some notices on and off, such as “anti-corruption is like a gust of wind, and will soon pass,” “anti-corruption is jeopardizing the economy,” and “anti-corruption now needs to put on the brakes.” Those who make and spread these noises have different mentalities but are primarily people who are not clean, do not want to stop [their wrongdoings], and attempt to "muddy the waters, in order to get out [of the consequences]."

The article further stated that Xi Jinping and Wang Qishan recently and on separate occasions spoke “in the strongest voice” that the anti-corruption is "always on the road"; anti-corruption efforts will continue unabated, at the same speed, and with the same intensity; the situation of the fight against corruption remains severe; [we] are far from finishing the fight and will track down the remaining corrupt officials.

Finally, the article stated that the Party should keep up the momentum and "continue to deepen" the anti-corruption campaign.

Source: The Journal of the Central Commission for Discipline Inspection reprinted by The Paper, June 4, 2016

http://www.thepaper.cn/newsDetail_forward_1478877

Briefings | | June 6, 2016 | Government/Politics

China Lowered Employer Social Security Withholding Percentage

China Youth Daily carried an article which stated that a number of provinces and municipal governments decided to reduce the employer’s share of withholding of the social security funds which cover pensions, medical payments, worker’s comp, unemployment, and child birth insurance. For example, the pension fund was reduced from 20 percent to 19 percent while unemployment insurance was reduced from 1 percent to 0.8 percent. The article said that the change does not impact the employee part of the contribution. It was reported that the reduction can save the employers as much as 1.2 trillion yuan (US$0.18 trillion) per year. The article quoted an expert, who was asked to clarify, and who gave assurances that reduction will not impact the employees’ social security benefits. The article took the pension as an example and stated that the pension fund consists mainly of savings from the employees’ contributions. It is expected that the reduction will last about two years and will be subject to change. According to statistics, the social security fund’s cumulative savings exceeded 7.024 trillion yuan (US$1.07 trillion) by the end of 2015.

Source: China Youth Daily, June 6, 2016
http://news.youth.cn/gn/201606/t20160606_8085703.htm

Briefings | | June 6, 2016 | Government/Politics

Global Times: China Needs to Build Its Deterence Capability against the United States

Global Times published a commentary article to counter the hawkish speech that U.S. Defense Secretary Carter gave on China at the Naval War College on May 25. The article suggested China build its military power to deter the U.S. military.

The article particularly singled out Carter’s words that likened the U.S.-China strategic situation to the Cold War confrontation between the U.S. and the former Soviet Union. The article said, “U.S. top military officials continuously promote the confrontation between the United States and China and have compared it, using the analogy of the ‘Cold War,’ to that between the U.S. and the Soviet Union. It has become the prominent trend in the current Sino-U.S. relations and in the South China Sea situation. Chinese officials have never made such a statement. It appears that the U.S. military is becoming the destructive force in overall Sino-U.S. relations."

“U.S. intervention has brought new signs to the militarization of the South China Sea. The U.S. not only came with warships and aircraft; the United States (or the U.S. military) also publicly expressed the strategic intention to contain the rise of China in the South China Sea. The South China Sea is entering an era of unprecedented tension, with Washington bringing in some elements and attempts totally unrelated to territorial disputes.”

“Carter’s words are the most serious threat China has ever heard since the end of the Cold War. They verified the worst situation in Sino-U.S. relations that some Chinese have worried about. The United States not only has the desire to contain China’s rise; it would really like to do so.” “The U.S. waving the big stick of a military threat cannot scare China. The South China Sea is so close to China, not to mention that the PLA can offset the quality of U.S. military equipment with its advantages in numbers and distance. We have full confidence in implementing anti-deterrence against the U.S. in the South China Sea.”

“China must accelerate the pace of building a modern national defense. We must not have any illusion on this issue. China should let the U.S. fully understand that once they take military action against Chinese targets in the South China Sea, the U.S. will pay a price it cannot afford. At the same time, China should further build a comprehensive deterrence capability against the U.S., increasing the strategic risk for the U.S.’s military threat to China. Currently, U.S. military officials are too casual to verbally bully Chinese. American society seldom feels that those generals are taking them into consideration in this risk.”

“China’s industrial output has surpassed the United States. Although its cutting-edge technology falls behind the United States, the application of military science and technological development is not slower and it has great potential. The total gap between the Chinese military and the total U.S. military should become smaller. In China’s coastal waters, the People’s Liberation Army should especially acquire overall superiority over the U.S. military. This should become China’s firm objective.”

Source: Global Times, May 30. 2016

http://opinion.huanqiu.com/editorial/2016-05/8986770.html

http://military.people.com.cn/n1/2016/0530/c1011-28389817.html

Briefings | | June 6, 2016 | US-China Relations

State Council Introduced a New Research Funding Management Policy

Guangming Daily reported that, on June 1, the State Council introduced a new set of regulations which include a shift in the funding ownership from the central administration to the research institute in order to allow more flexibility in funding management. The policy also increased the allocation in hiring of research staff from 5 percent to 20 percent of the total indirect expense. Prior to this, the central administration and local government introduced a number of policies which were meant to correct the rigid management policy and the repetitive application process, as well as inadequate management of the funding. According to the statistics, from 2006 to 2014, the Ministry of Finance increased the science and technology funding from 1 trillion yuan (US$0.15 trillion) to 2.9 trillion (US$0.44 trillion). The statistics from the Ministry of Statistics suggested that total research and development spent in 2015 was 14 trillion (US$2.13 trillion) where 11 trillion (US$1.67 trillion) came from companies and 3 trillion (US$0.46 trillion) came from a government research institute and from colleges.

Source: Guangming Daily, June 3, 2016
http://edu.gmw.cn/2016-06/03/content_20401516.htm

Briefings | | June 6, 2016 | Economy/Resources

Qiushi: Tracking Down Corrupt Officials Who Fled Overseas

On May 31, 2016, Qiushi published a commentary that Huang Shuxian, the Minister of Supervision and Deputy Secretary of the Central Commission for Discipline Inspection (CCDI) wrote about Xi Jinping’s speeches on cooperating with foreign governments in the anti-corruption campaign.

Huang wrote that these speeches demonstrate the resolve to track down all corrupt officials wherever they are. “Punishing corrupt officials with zero tolerance has consistently been the position of our Party.” In discussing how to view the anti-corruption campaign, Xi noted that anti-corruption is not a power struggle and there is no "house of cards.” If one does not “offend” corrupt officials, he will offend more than 1.3 billion people.

Huang further stated that, in his speeches, Xi discussed the capture of corrupt officials who have fled China. Xi noted that these corrupt officials must not be allowed to hide in “paradise to avoid punishment" with impunity. They must be tracked down and brought to China, even if it takes five, 10, or 20 years. Huang stated that these important expositions show Xi Jinping’s strong sense of mission and tenacious determination.

Source: Qiushi, May 31, 2016

http://www.qstheory.cn/dukan/qs/2016-05/31/c_1118938600.htm

Briefings | | June 3, 2016 | Government/Politics

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.