Skip to content

China’s Reaction to Trump’s Election Win

Read More ...

Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

Read More ...

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Read More ...

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

Read More ...

CCDI Criticized the Communist Youth League

China Youth Daily, the official newspaper of the Communist Youth League, reported on April 1 that the Central Commission for Discipline Inspection (CCDI) of the Chinese Communist Party provided feedback after it conducted an inspection of the Communist Youth League. 

The CCDI inspection team criticized the Communist Youth League for its four tendencies. The Communist Youth League is out of touch with young people. Instead, it focuses on what the superiors are doing. It relies on an administrative mechanism from the top down; it rules by orders and demands obedience. It caters to the interest of elites and ignores working young people. It conducts too many entertainment activities that do not have educational content. 
“The Communist Youth League serves the Communist Party by working with the masses. … It mustn’t continue the four tendencies and mustn’t be out of touch with the masses. Otherwise, it will fail to fulfill the fundamental value for which the organization [the Communist Youth League] exists.” 
Source: China Youth Daily, April 1, 2016 
http://zqb.cyol.com/html/2016-04/01/nw.D110000zgqnb_20160401_6-01.htm
Briefings | | |   Government/Politics

Guangming Daily: Chinese Companies Increase Overseas Acquisitions to Gain a Global Advantage

Guangming Daily published an article on Chinese companies’ overseas acquisitions, including a recent one on March 30 in which Midea spent US$473 million to acquire an 80.1 percent share of the stock in Toshiba. Also, on January 15, GE sold its appliance business to China Haier for US$5.4 billion.

The article stated that the move is part of the effort that the Chinese manufacturing companies are making in order to gain a competitive advantage in the world’s market. The article quoted a statement that a Chinese businessman made, saying that China’s overseas acquisitions grew 40 percent in 2015. According to the article, in today’s world, China lags behind in technology and brand recognition. China wishes to improve its competitive advantage and increase its overseas market share through mergers and acquisitions. The article stated, “In order for China to enter the world market, China is required to increase communication and cooperation with other companies.” 

According to statistics that the Ministry of Commerce released, among the overseas investments that Chinese companies made in 2014, manufacturing ranked 5th, following leases and commercial services, the financial industry, coal mining, retail, and distribution.

Source: Guangming Daily, April 1, 2016
http://economy.gmw.cn/2016-04/01/content_19533590.htm

Briefings | | |   Economy/Resources

Urbanization and China’s Housing Inventory

Xinhua’s Economic Information Daily recently published an article reporting on discussions that the attendees at the 2016 Boao Forum for Asia had about China’s large housing inventory. They expressed the belief that, in order for China to be successful in reducing its housing inventory, the number of new local residents must increase. About 70 percent of China’s real estate inventory is located in third or fourth tier cities such as capitals of less developed provinces, prefecture-level cities, and county-level cities. 

According to the article, experts at the forum pointed out that new residents who come to these cities may be the primary group to reduce the housing inventory. Urbanization based on population has reached 56 percent while urbanization based on registered urban residents is 37.5 percent, 18.6 percentage points lower. Farmers who left the countryside to work and live in the cities do not enjoy the same benefits in terms of pay, education, social security and housing, which makes it hard for them to take root in the cities. To incentivize these former farmers to buy houses in the cities requires the reform of the urban household registration system to allow them to register as well as solutions to other issues they face, such as enabling them to dispose of and liquidate their old farm houses. 

Source: Economic Information Daily, March 31, 2016 
http://news.xinhuanet.com/politics/2016-03/31/c_128850177.htm
Briefings | | |   Economy/Resources

Huanqiu: U.S. and Seoul Are Ready for Strike against North Korea

On December 31, 2016, as President Xi Jinping was meeting with President Obama at a nuclear security summit in Washington, DC, the China State media Huanqiu published a commentary by Lieutenant General Wang Hongguang, former Deputy Commander of the Nanjing Military Command, on the North Korean nuclear issue. 

According to Wang, the U.S., Seoul, and North Korea are implementing a "brinkmanship" policy, which has substantially increased the possibility of military confrontation. Once such a confrontation took place, it would probably not be an "accidental discharge" nor could any party control the situation.
Wang believed that the U.S. and South Korea have long been planning a military strike against North Korea and that the motivation for such a strike may now be ripe. 
Wang expressed that the military strike against North Korea would be likely to consist of four stages: first, a small scale attack on North Korea’s satellite launch site and the destruction of their nuclear technology; second, a small and medium scale attack on North Korean nuclear facilities and warehouses at the risk of nuclear contamination; third, a large scale attack on hundreds of military targets already identified, which would paralyze North Korea’s ability to initiate any of its own attacks and to fight back; fourth, a large scale attack to overthrow the North Korean regime by force. 
[Editor’s Note: Analysts noted the timing of Wang’s commentary was during Xi’s visit to the U.S. on nuclear issues.  Some also observed that the North Korean regime has been under the wing of former President Jiang Zemin’s faction. According to sources in the Chinese nuclear industry, North Korea’s nuclear scientists and technicians were trained in China, which also provided North Korea the most cutting-edge nuclear technology.] 
Sources: Huanqiu, March 31, 2016 
http://opinion.huanqiu.com/1152/2016-03/8793171.html?qq-pf-to=pcqq.c2c
Briefings | | |   Geo-Strategic Trend

Second Letter Calling for Immediate Impeachment of Xi Jinping Appeared on the Internet

On March 29, a second letter circulated on the Internet calling for the Impeachment of Chinese President Xi Jinping. At the time, Xi was attending the Nuclear Summit in Washington D.C. The letter titled “An Open Letter to the Entire Party, the Army, and the People, Calling for the Immediate Impeachment of Xi Jinping and His Removal from All Posts Inside and Outside of the Party.” 171 Chinese Communist members purportedly proposed the letter, which first appeared on the blog of MingJing (Der Spiegel), a weekly magazine, and has since been removed from the website. The article is currently circulating on a number of other Chinese websites. The letter alleges Xi has committed five categories of crimes and demands his immediate dismissal. The letter also asks all Party members to vote for a new Party leader at the 19th CCP Congress. 

Source: China Digital Times, March 31 
https://chinadigitaltimes.net/chinese/2016/03/【立此存照】就立即罢免习近平同志党内外一切职/
Briefings | | |   Grapevine

Global Times: Nuclear Arms û the Ultimate Card If U.S. Provocation in the South China Sea Escalates

Global Times (Huanqiu), a major CCP mouthpiece under People’s Daily, published an article proposing that China accelerate its nuclear weapons development to ensure China’s deterrence power in countering U.S. involvement in the South China Sea. The article stated that the U.S. instigates neighboring countries in the South China Sea to make trouble for China in order to suppress China’s rise. It is not difficult for the U.S. to succeed to some degree due to its mighty power. All this has made China very uncomfortable. The article suggested that if it were merely a diplomatic fight, it would be manageable. However, China has to prepare for the worst case in a military fight. The article claimed that China will not just retreat in the face of U.S. aggression. China cannot beg the U.S. for mutual respect. It can only be achieved by increasing China’s strength, particularly its military strength. 

“To let the U.S. have some deep concern so it does not act in the South China Sea at will, the U.S. has to worry as much as China does about the consequences of a possible Sino-U.S. fight. [To have such an effect,] China’s strength must reach the following level: American vessels and planes can only come to the South China Sea as a tool of a show of diplomacy. When they really threaten the security of Chinese locations, the U.S.’s risk of being attacked will become a reality and urgent. So will the U.S. military bases in the Asia Pacific. Wherever China is being threatened, the U.S. should fall into its own deep fears of insecurity.” 
 The article advised, “China’s capabilities are clearly in continuous development. This process needs to be further accelerated. It should be noted that, if the United States and China’s relations come to the worst case, nuclear power is the ultimate card to play. Therefore, China must unswervingly grow its nuclear forces to ensure that it has a strong and reliable second nuclear strike capability."

Source: Huanqiu, March 18, 2016 
http://mil.huanqiu.com/observation/2016-03/8728661.html

Briefings | | |   US-China Relations

Amended Regulations Will Hold Police Accountable for Abuse of Power

China has amended its Provisions on the Accountability of the People’s Policemen with Public Security Organs. The amended provisions took effect on March 1, 2016, superseding the original regulations of July 11, 1999. Notably, changes in the amended regulations include Articles 19 and 27. 

Article 19 provides that law enforcement personnel who commit wrongful acts such as corruption, torture, falsifying evidence, tipping people off, retaliation, or framing people will be severely prosecuted. 
Under Article 27, if law enforcement personnel intentionally or through gross negligence are responsible for cases being handled incorrectly, that law enforcement officer will be subject to lifetime accountability, regardless of any changes in his work unit, position, rank, or retirement status. 
Sources: 
Jinghua Times reprinted by People’s Daily, March 3, 3016 
http://opinion.people.com.cn/n1/2016/0303/c1003-28167802.html 
Legislative Affairs Office of the State Council of China, February 22, 2016 http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201602/20160200480251.shtml
Briefings | | |   Government/Politics

Xinhua: Japan’s New Security Law Will Soon Be Implemented

Xinhua recently reported that the Japanese Cabinet decided to implement its new security law starting on March 29. The new law allows for Japan’s collective self-defense, which all generations of the Japanese government had banned since the end of the Second World War. The new law also allows the Japanese military to deploy globally for certain missions. Last year, the ruling coalition forcefully passed the new law, ignoring the Japanese people’s strong opposition. The new law is considered a major milestone which represents a significant military policy change from “peaceful self-defense” to active global participation in military activities. According to the new law, as long as the United States, as a treaty-binding ally, makes the request, Japan can legally send troops overseas to offer help to the U.S. The right of collective self-defense was widely thought to be against the Japanese Constitution, since it allows the use of military power without Japan being attacked directly. 
Source: Xinhua, March 22, 2016
http://news.xinhuanet.com/world/2016-03/22/c_1118404253.htm
Briefings | | |   Geo-Strategic Trend