Chinascope – Page 632

People’s Daily: RMB Depreciation Caused Online Exchange System Failures

People’s Daily recently reported that the Chinese currency, the RMB, underwent a rapid pace of depreciation at the beginning of the new year, which caused a serious disturbance in the investment market. This negative wave impacted many individuals. Subsequently, reporters observed a sharp increase in personal exchange transactions for foreign currencies in banks in major cities like Shanghai and Shenzhen. Since many of the personal transactions occurred online, some banks suffered slowness and even breakdowns of their online systems. Managers of major banks such as the Bank of China, China Merchants Bank, the Industrial & Commercial Bank of China, and the Agricultural Bank of China all told reporters that the flood of customers who were exchanging RMB for U.S. Dollars or Hong Kong Dollars was “scary.” Many banks started to set caps and other restrictions on personal foreign exchange requests.

Source: People’s Daily, January 8, 2016

http://money.people.com.cn/bank/n1/2016/0108/c202331-28027995.html

Briefings | | January 12, 2016 | Economy/Resources

Police Close Down Chinese Company’s Booth at CES

Well-known Chinese technology news site Tencent News recently reported that a Chinese company named First International Trade set up a booth at the CES (International Consumer Electronics Show) in Las Vegas, where it was selling a scooter named Trotter. The Trotter was later identified as a counterfeit which replicated the well-known U.S. product that Future Motion made, called Onewheel. Future Motion founder Kyle Doerksen said the Trotter violated several Future Motion patents. His company then went through the proper legal process to obtain a Temporary Restraining Order to have the police shut down First International Trade’s booth. Future Motion discovered the Trotter last year and contacted First International Trade to request that it discontinue the Trotter. Future Motion received no response. The CES host, the Consumer Technology Association, refused to comment on this incident. It had accepted the fees that First International Trade paid and allowed the booth to be set up despite Future Motion’s before-show complaint.

Source: Tencent News, January 8, 2016

http://tech.qq.com/a/20160108/031302.htm

Briefings | | January 12, 2016 | Information/Technology

Xi Jinping: Give Extremely High Priority to Repairing Yangtze River Ecological Environment

China News recently reported that Chinese President Xi Jinping attended an economic development strategy Forum for the Yangtze River Basin. At the Forum, he emphasized that the Yangtze River is the “mother river” of the Chinese civilization and is a key supporting resource for the future developmental roadmap for China’s economy. Xi pointed out that the Yangtze River ecological system repair work must be given an “extremely” high priority and that the “Ecology First, Green Development” strategy should be implemented not only immediately but for a long period of time into the future as well. He asked all provinces and cities along the Yangtze River to focus on “Grand Protection” plans instead of “Grand Development” ones. Xi suggested that China must optimize the urban agglomeration along the River and sort out the current disorderly development of local industries and ports. Top leaders of Shanghai, Jiangsu, Zhejiang, Anhui, Jiangxi, Hubei, Hunan, Chongqing, Sichuan, Guizhou and Yunnan attended the Forum. These are key regions in the Yangtze River ecological system.

Source: China News, January 7, 2016

http://www.chinanews.com/gn/2016/01-07/7706502.shtml

Briefings | | January 12, 2016 | Economy/Resources

Xi Jinping on Political Discipline

On January 9, the Central Commission for Discipline Inspection (CCDI) of the Communist Party published the highlights from Xi Jinping’s speeches given in recent years on abiding by the Communist Party’s discipline and rules. It had Xi’s quote as the title, “In Politics there are Some Things One Should Absolutely Never Do; Otherwise, One Must Pay for it.”

October 23, 2014, at the Second Meeting of the Fourth Plenary Session of the 18th Communist Party of China Central Committee, Xi made the following remarks:

“Corruption is corruption; political problems [opposing Xi’s leadership] are political problems. [We] cannot talk about the problem of corruption without talking about political problems. Party officials who have political problems have caused harm to the Party in the same way that corruption has. In some cases, the harm has been even more damaging than corruption."

“Similarly, on political issues, no one can cross the red line [bottom-line]. If anyone crosses the red line, they will undergo a serious investigation and be held accountable politically. In politics there are some things one should absolutely never do; otherwise, one must pay for it. No one can take political discipline and political rules as a trifling matter.”

Source: The Central Commission for Discipline Inspection of the Communist Party website reprinted by Xinhua, January 10, 2016

http://news.xinhuanet.com/politics/2016-01/10/c_128612581.htm

Briefings | | January 11, 2016 | Government/Politics

Caixin: China Manufacturing PMI of 2015’s Last Month Was Low

Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for December 2015, which was 48.2. The Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator monitored globally by financial institutions. The new Caixin PMI indicated that the Chinese manufacturing industry has been declining for ten consecutive months. The index showed weakened foreign demand. New export orders shrank, which impacted the overall new business volume for the month. Further analysis demonstrated that domestic demand was declining as well. In December, employers in manufacturing continued to reduce headcounts. In the meantime, manufacturers remained conservative in their procurement activities. However, data showed a lowered average cost across the industry even though the inventory level had a slight increase. 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, January 1, 2016

http://pmi.caixin.com/2016-01-04/100895398.html

Briefings | | January 11, 2016 | Economy/Resources

VOA Chinese: Xi Tells Politburo Members to Stay in Line with Party Central

The Political Bureau (Politburo) of the Chinese Communist Party (CCP) Central Committee held a special two-day meeting on December 28 and 29. At the meeting, Xi Jinping brought up the names of five disgraced top officials: Zhou Yongkang, Bo Xilai, Xu Caihou, Guo Boxiong, and Ling Jihua. Except for Ling, a former CCP Central Committee member who served as the top aide to then CCP Secretary General Hu Jintao, the other four were all former Politburo members. Zhou was also a member of the Politburo Standing Committee.

A news release issued after the meeting claimed that punishing these officials served to honor the responsibility to the CCP, to the country, to the people, and to history.

Xi was quoted as asking current Politburo members to "stay in line" with the CCP Central Committee, and to "be strict in educating and supervising their children and other family members as well as their subordinates."

VOA‘s report observed that asking Politburo members to "stay in line" with the CCP Central Committee (or Party Central, in short) is worth noting, as the Politburo itself is the power center of 80 million CCP members. Xi’s requirement would imply that the 20-plus Politburo members need stay in line with either the Politburo Standing Committee or with Xi himself.

Source: VOA Chinese, December 30, 2015

http://www.voachinese.com/content/xijinping-china-20151230/3125582.html

Briefings | | January 9, 2016 | Government/Politics

Caixin: The Founding Fathers of the United States Created a Superior Structure for the System

On December 31, 2015, Caixin, a media group that is close to current top CCP leader Xi Jinping, published an article titled, “The Reform of the Structure That Enables Reform of the System Is the Most Important (action).” There are three levels of social reforms in the history of mankind: 1) Reform at the Technological Level; 2) Reform at the System Level (the Rules of the Game); and 3) Reform of the Structure of the System Level (Rules for the Rules of the Game).

According to the article, the 1st (technology) and the 2nd (system) level reforms can be achieved by a few social elites or by an authoritarian government. Such reforms are not sustainable and cannot adapt to social and economic changes. The 3rd, the structure for the system level reform can be realized based on the newly formed social consensus and the social contract. Only after the completion of the 3rd reform in a country can that country be regarded as an open society. Social and economic development will then embark on a healthy development track: social development relies on a robust and secure system, rather than counting on a few social elites. In an open society, the government itself is also subject to the limitations and constraints of the social contract.

“Therefore, in terms of importance, the structure of the system is the first priority. If there is a superior structure for the system, a good system will be derived therefrom. Once there is a good system, it will give birth to advanced technology. I think this is why Washington, Jefferson, Franklin, and other founding fathers of the United States are respected by their posterity: They created a superior structure for the system."

Source: Caixin, December 31, 2015
http://opinion.caixin.com/2015-12-31/100894693.html

Briefings | | January 8, 2016 | Government/Politics

Huanqiu: China May Have Cut Five Ground Force Army Groups

On January 2, 2016, Huanqiu published an article on China’s military reform; it was based on an article from China’s military newspaper People’s Liberation Army Daily. According to the article, China may have reduced 5 of its ground force army groups, going from the previous 18 army groups to 13 army groups. The 5 removed army groups were from the Shenyang Military Region, the Beijing Military Region, the Jinan Military Region and the Chengdu Military Region.

China’s president Xi Jinping had announced on September 3, 2015, that 300,000 troops would be cut. The demilitarization of 300,000 troops mainly targeted the downsizing of land force armies, reducing non-combat institutions and personnel, as well as military official positions.

“China’s military reform has triggered massive reshuffles, the influence of which is ‘unprecedented’ in terms of its depth, breadth, and the range of interests affected. Some media call it ‘a system remodeling.’"

Sources: Huanqiu and People’s Daily, January 2, 2016
http://www.huanqiuzhiyin.com/hqjj/2016/01022182.html
http://military.people.com.cn/n1/2016/0102/c172467-28003660.html

Briefings | | January 7, 2016 | Defense/Military

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.