Chinascope – Page 641

Should China Participate in Military Combat against ISIS?

Following the terrorist attacks in Paris, the Islamic State also killed a kidnapped Chinese hostage. The voices in support of military participation in anti-terrorism are gradually increasing. Proposals have been made that [China] join forces with Russia and Europe to combat terrorists. China Review News published a commentary article stating that such an action can only occupy a position of "moral righteousness." However, it is not only unconducive to the effective governance of global terrorism, but also may cause damage to national security and the national interests of China.

The article argues that China’s focus on terrorism should not be in the Middle East. For China, the anti-terrorism issue most closely related to the Xinjiang region is always the terrorism in Central Asia and South Asia. With involvement in the fight against terrorism in the Middle East quagmire, the most likely outcome would be getting trapped and unable to disengage from it. Therefore, the most sensible thing for China on anti-terrorism in the Middle East is to support verbally, encourage morally, and maintain calm in action.

What is more, the nature of China’s anti-terrorism and the West’s counter-terrorism, although sharing the same name, are completely different. China does not interfere in the internal affairs of other countries, does not seek regional hegemony, does not export values, and does not want to export revolution. China’s anti-terrorism is mainly to safeguard national sovereignty, territorial integrity, and the security of people and goods. Therefore, China needs to maintain some distance from the anti-terrorism of the West whose [intention] is to maintain its economic system and export its values.

Source: China Review News, November 21, 2015 http://gb.chinareviewnews.com/doc/1040/1/3/2/104013218.html?coluid=202&kindid=11690&docid=104013218&mdate=1121105932

Briefings | | November 25, 2015 | Geo-Strategic Trend

Beijing Business Today: Endless Steel Overcapacity

On November 17, 2015, Beijing Business Today and Xinhua Economic Information Daily published an article titled “Endless Steel Overcapacity.” China produced 820 million tons of crude steel in 2014, accounting for about half of the global steel production, thanks to the large infrastructure and real estate boom in the last decade. However, domestic demand has decreased recently due to sluggish real estate development. Serious excess steel capacity has resulted in low profit margins. In the past 10 months, China exported 92.13 million tons of excess steel overseas at cheaper rates. This amount is much more than the amount of steel exported last year (73.89 million tons). However, this year’s profit from the exportation of steel has dropped by 6.6 percent.

Local governments have been reluctant to solve the problem of the excess steel production because the iron and steel industry accommodates a lot of employment opportunities. The iron and steel industry would have to lay off unneeded employees in order to reduce the steel overcapacity. The government should let the market eliminate unprofitable companies and backward production capacity. At the same time, the government should take responsibility for assisting the unemployed workers to find new jobs. It should also provide them with a social security pension, health care, and job training so as to minimize any social conflicts.

Sources: Beijing Business Today & Xinhua Economic Information Daily, November 17, 2015
http://www.bbtnews.com.cn/2015/1117/127566.shtml
http://www.jjckb.cn/2015-11/17/c_134823900.htm

Briefings | | November 25, 2015 | Economy/Resources

Is Xi Softening His Approach to International Affairs?

Several recent events seem to indicate that China’s President Xi Jinping is taking a softer approach when handling international affairs. Media and political observers have become aware of several instances and discussed them, but there has not been much analysis of the underlying reasons.

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Perspectives | | November 24, 2015 | Opinion

Global Times: Chinese Naval Admiral Warned U.S. Admiral to His Face

Global Times recently reported that Chinese Naval Commander Admiral Wu Shengli met with U.S. Pacific Fleet Commander Admiral Scott Swift, who was visiting Beijing on November 19. Wu said in the meeting that China is strongly against the recent U.S.’ “serious provocation” against China’s sovereignty by approaching Chinese islands too closely under the name of freedom of navigation. Wu asked the U.S. Navy to cherish the valuable U.S.-China relationship, stop threatening Chinese national security in the South China Sea, and carefully control the U.S.’ maritime military activities. Swift replied that the U.S. Navy does not want to cast a shadow over the relationship of the two navies only because of the South China Sea situation. He called for more joint exercises to avoid potential misjudgments and accidents based on The Code for Unplanned Encounters at Sea.

Source: Global Times, November 20, 2015

http://mil.huanqiu.com/china/2015-11/8016437.html

Briefings | | November 24, 2015 | Defense/Military

BBC Chinese: Leaders of Japan and the Philippines Agreed on Defense Supplies

BBC Chinese recently reported that Japanese Prime Minister Shinzo Abe and President Benigno Aquino of the Philippines reached an agreement on the technical transfer of defense equipment. The agreement will clear the way for Japan to supply the Japanese Army’s second-hand equipment, such as airplanes, to the Philippines. The two countries decided to accelerate their cooperation due to China’s speedy progress of expansion in the South China Sea. Japan also agreed to “actively study” the request from the Philippines who asked for the supply of large patrol boats. Japan is in the process of providing the Philippines with TC-90 training aircraft, which can be equipped with air-to-air and air-to-ground surveillance radar. In the future, Japan may also provide U.S.-made second-hand P-3C anti-submarine patrol aircraft. The Philippines is on the path to allowing Japanese airplanes and vessels to use the Philippines’ military bases. In the meantime, Japan is currently manufacturing 10 patrol boats for the Philippine Coast Guard.

Source: BBC Chinese, November 19, 2015

http://www.bbc.com/zhongwen/simp/world/2015/11/151119_japan_philippines_defence

Briefings | | November 24, 2015 | Geo-Strategic Trend

Macao Chief Executive: Gambling Industry May Suffer a New Low

The South China Morning Post recently reported that Macao Chief Executive Chui Sai discussed his estimate of the City’s 2016 gambling-related income in his speech to the Macao Legislative Council. Cui projected that Macao’s gambling industry may have a pre-tax income of US$25 billion in 2016, which is lower than that of 2015 and is only half of the 2014 number. The gambling business in Macao is currently seeing its worst days in history. Analysts say the primary factors are the significantly slowed Chinese economy as well as the Mainland’s anti-corruption movement. Macao’s gambling income has suffered 17 consecutive months of decline. Although the City is still expanding its capacity to handle a large volume of tourists, the total number of visitors is seeing a decline. The upcoming holiday season is critical to Macao’s economy.

Source: South China Morning Post, November 18, 2015

http://www.nanzao.com/sc/business/1511954ac25eda1/ao-men-te-shou-bo-cai-ye-shou-ru-ming-nian-liao-xu-jiang-kong-chuang-2010-yi-lai-zui-di

Briefings | | November 24, 2015 | Economy/Resources

China to Adopt U.S. Registration System for IPOs

On November 20, Xiao Gang, Chairman of the China Securities Regulatory Commission (CSRC), stated that the State Council will push for the implementation of a registration system similar to the one in the United States to be initiated as early as March 2016.

Currently, after they pass the review of CSRC’s Public Offering Review Committee (PORC) and complete post-review procedures, the CSRC approves all Initial Public Offering (IPO) applications of companies wishing to list their equities on the stock exchanges. Xiao Gang stated that the current approval-based system has brought about inflated financials with understated risks, excessive fund raising during the IPOs, high issuance prices, and the corruption of security officials.

According to Xiao Gang, the upcoming registration system will be similar to the U.S. SEC registration required for IPOs. CSRC will review whether the prospective issuer has provided full disclosure of its financials and risks. The issuer will determine that the IPO share prices are based on the market. The registration system will also provide a mechanism for companies to delist from the stock exchange if they wish.

Source: Finance (Jing Rong Wang), November 22, 2015 http://stock.jrj.com.cn/ipo/2015/11/22153420113134.shtml

Briefings | | November 23, 2015 | Economy/Resources

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.