Chinascope – Page 627

China Signed 17 Agreements with Iran

Well-known Chinese news site Sina recently reported that, during Chinese President Xi Jinping’s visit to Iran, China signed 17 agreements with Iran. The agreements covered energy, finance, telecommunications, and other fields, including peaceful use of nuclear energy. China is currently Iran’s largest trade partner with an annual trade volume of US$50 billion. In the newly signed agreements, the two countries agreed to target US$600 billion in the next ten years. The two countries also signed a joint statement on establishing a 25-year “comprehensive strategic partnership.” Both Xi and Iranian President Rohani agreed to develop a tighter relationship in politics, culture, and trade. Both sides committed firmly to supporting each other on major issues concerning independence, sovereignty, and territorial integrity. China supports Iran in playing a more important role in regional and international matters. China also supports Iran in applying for membership in the Shanghai Cooperation Organization (SCO).

Source: Sina, January 24, 2016

http://mil.news.sina.com.cn/china/2016-01-24/doc-ifxnuvxc1838003.shtml

Briefings | | February 2, 2016 | Geo-Strategic Trend

Goldman Sachs: China Has to Allow RMB to Depreciate

The Chinese government backed Hong Kong news platform Phoenix New Media recently reported that Goldman Sachs President and COO Gary Cohn spoke about China at the World Economic Forum (Davos). Cohn said that China may have to allow its currency to depreciate. Cohn expressed his belief that the depreciation is needed to solve the issue that the Chinese economy is slowing-down. He said China will “have to do something in the next six months.” Chinese Vice President Li Yuanchao also commented at the Davos Forum that China does not plan to depreciate the RMB and that, in addition, there is no policy currently in place for depreciation to occur. The Chinese currency has suffered a volatile new year so far. The Chinese central bank unexpectedly adjusted down the on-shore exchange rate and the RMB depreciated 1.5 percent in the first week of January. This raised a lot of doubts among the financial community about the Chinese government’s strategy.

Source: Phoenix New Media, January 23, 2016

http://finance.ifeng.com/a/20160123/14185278_0.shtml

Briefings | | February 2, 2016 | Economy/Resources

Half a Million Jobs in Steel Industry May Be Cut Due to Overcapacity

About 500,000 may see their jobs gone because of China’s effort to reduce steel overcapacity.

On January 22, the State Council announced that China will cut its crude steel production capacity by 100 million to 150 million tons. To accomplish this goal, Chi Jingdong, deputy secretary-general of the China Iron and Steel Association (CISA), said that, based on the per worker output of 300 metric tons at China’s steel mills, it means that 500,000 steel workers will face job changes.

To deal with the 500,000 job changes, the State Council has reviewed and approved the “Guidance on the Steel Industry Turnaround,” which is expected to be released officially after the Chinese New Year which is on February 8. According to the Guidance, the reduction in crude steel production will be accomplished within a three year period (2016 – 2018). Two approaches will be used: mandatory and guided closedowns. Those companies that do not meet the legal requirements of the environmental law and regulations must be completely shut down permanently. Government policies will guide the elimination process for those that have already exited the market, that need to be relocated, or that are involved in mergers and acquisitions.

Source: The Economic Observer reprinted by Huanqiu, January 30, 2016

http://china.huanqiu.com/article/2016-01/8478107.html

Briefings | | February 1, 2016 | Economy/Resources

French Economy Minister: I Don’t Believe the Chinese Economic Data

A major Taiwanese newspaper, The Liberty Times, recently reported that Emmanuel Macron, the French Minister of the Economy, Finance, and Industry, stated that he did not believe the just released official Chinese economic data “for a second.” Macron made those comments at the World Economic Forum Annual Meeting held at Davos-Klosters, Switzerland. Beijing just announced that China enjoyed a GDP growth of 6.9 percent in 2015. Macron expressed his doubts and thought that the actual growth rate should be far lower than the official number. However, he also said that “we just have to get used to it.”

Macron described his “real worry,” which was for the world economy and for the geopolitical environment, which has been getting more and more unstable. At the same time, well-known global investor George Soros also said that the Chinese economy is heading for a “hard landing.” Soros estimated that the Chinese GDP growth rate will stay at around 3.5 percent. Compared to other developed countries, a lack of transparency often covers over the true picture of China’s economy.

Source: The Liberty Times, January 23, 2016

http://news.ltn.com.tw/news/business/breakingnews/1582639

Briefings | | February 1, 2016 | Economy/Resources

Xinhua: Xi’s Amnesty in 2015 Shows Confidence

On January 25, 2016, Xinhua reported that, on August 29, 2015, before a national commemoration of the 70th anniversary of the end of World War II, President Xi Jinping signed an authorization of amnesty after whcih a total of 31,527 prisoners have been released.Xinhua reported that most of those released were juveniles when they committed their crimes.

Xinhua followed the report with a special commentary on the amnesty stating the move is “a successful example of how the Party rules.” It emphasized that this is the first time amnesty has been granted since the enactment of the current Constitution 33 years ago and that this “demonstrates one more time how governing and institutional confidence follow the road of socialism with Chinese characteristics.”

Sources:

Xinhua, January 25, 2016

http://news.xinhuanet.com/legal/2016-01/25/c_1117889751.htm

Xinhua, January 25, 2016

http://news.xinhuanet.com/legal/2016-01/25/c_1117889800.htm

Briefings | | January 29, 2016 | Government/Politics

Mingpao: Military Exercises near Taiwan Not Meant to Intimidate Tsai, the President-elect of Taiwan

On January 21, 2016, Mingpao, a pro Chinese Communist Party (CCP) Chinese language newspaper headquartered in Hong Kong, published an article titled, “CCTV Broadcasted the PLA Landing Exercises in Fujian after the Taiwan Election. Military Expert: Propaganda Mainly for Internal Audience Rather Than to Intimidate Tsai.” The original article was taken down from Mingpao’s main website on the afternoon of January 27, 2016. However, the article is still available online at Mingpao Canada and on some other websites which have republished it.

Five days after Taiwan’s presidential election, China Central Television (CCTV) broadcasted the news that the 31st Group Army of the People’s Liberation Army (PLA), headquartered in Xiamen, Fujian Province, conducted large scale landing exercises with live ammunition. The 31st Group Army mobilized long-range rockets, howitzers troops, amphibious tanks, and helicopter landing forces. Before 1979, the 31st Group Army, clearly defined as “reuniting China by landing onto the main island of Taiwan,” used to perform shelling of the Kinmen island group and the Matsu Islands of Taiwan. Broadcasting the 31st Group Army military exercises on CCTV, the predominant state television broadcaster in mainland China, triggered much speculation outside of China.

In response, Wu Ge, a military commentator in Mainland China said, “This is a routine exercise. In general, it is mainly used for internal propaganda to satisfy sentimental needs of some extreme nationalists.” Mr. Wu further said, “Tsai Ing-wen has not assumed (the presidency of Taiwan) and has not proposed any policies yet. What made the army so anxious? The main reason was that Xi Jinping was in a tour outside of China. Someone took the opportunity to exaggerate the propaganda. The exercise did not target the Taiwan election. The main purpose of the propaganda targeted Taiwan.”

Source: Mingpao, January 22, 2016
http://www.mingpaocanada.com/VAN/htm/News/20160122/tcaa1_r.htm
http://news.mingpao.com/pns/dailynews/web_tc/article/20160122/s00013/1453398732530
http://www.e123.hk/ElderlyPro/details/453736/72
http://stock2.pchome.com.tw/news/cat8/20160122/14534206806688009003.html
http://news.pchome.com.tw/finance/cnyes/20160122/index-14534206806688009003.html

Briefings | | January 28, 2016 | Geo-Strategic Trend

Xinhua: Putin Denounced Lenin

Chinese media reported that, within the past five days, Putin criticized Lenin twice at public gatherings. Xinhua’s report mentioned that the Russian Communist Party rebutted Putin, but Chinese media made no comments.

On January 25, Putin stated, “There is a time bomb buried under our country. Lenin supported the concept that the establishment of the State and the Soviet Union was based on the full equality of each member and each has the right to withdraw from the Soviet Union. This is a time bomb that lies beneath our country.”

On January 21, the 92nd anniversary of Lenin’s death, Putin said at a presidential science and education council conference, "We did not need a world revolution." He also said, "Thought control moved in the right direction, but it needs to bring the right results, which should not be what Vladimir Lenin brought about. Lenin’s ideas eventually led to the collapse of the Soviet Union. It was like a nuclear bomb placed underneath the ‘Russian’ structure. Later the bomb exploded. "

Sources:

Xinhua, January 27, 2016

http://news.xinhuanet.com/world/2016-01/27/c_128675195.htm

Sina, January 26, 2016

http://news.sina.com.cn/w/zg/2016-01-26/doc-ifxnuvxc2009382.shtml#SI_FormList2

Briefings | | January 28, 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.