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China: Hague PCA Rulings on South China Sea Were Invalid

Well-known Chinese news site Sina recently reported that the Chinese Ministry of Foreign Affairs made an official statement that The Hague Permanent Court of Arbitration’s (PCA) rulings on the South China Sea were not valid and were not binding. The Philippines government submitted the issue of the South China Sea conflict to the PCA for international arbitration in 2013. However, China held that China cannot accept unilaterally submitted cases and that the Philippines abused the United Nations Convention on the Law of the Sea (UNCLOS). According to UNCLOS, China has the freedom to choose its own dispute settlement procedure. Both the Philippines and the PCA ignored the mutual agreement between China and the Philippines to resolve conflicts via peaceful political negotiations, which the Philippines confirmed multiple times. China called for the Philippines to keep its promise and come back to the negotiating table.
Source: Sina, October 31, 2015
http://news.sina.com.cn/c/2015-10-31/doc-ifxkhchn5747717.shtml

Xinhua: The Quality of 90 Percent of China’s School Supplies Failed the National Standard

Xinhua published an article on the quality of China’s school supplies sold online and in stores. According to the report issued by Quality and Technology Supervision of Jiangsu Province, over 90 percent of the school supplies including pen ink, correction fluid, erasers, and homework writing paper contains toxic contents that exceed the national standard. The article said that a lack of supervision, large consumer demand, as well a lack of reinforcement of quality inspection at the manufacturing sites were the issues that affected the quality. According to the article, the complaints related to quality issues that the Consumer Association received in the first half of the year increased by 3 percent compared to the same period in 2014.

Source: Xinhua, November 1, 2015
http://news.xinhuanet.com/local/2015-11/01/c_1117003410.htm

China to Start National Population Survey

On November 1, China will start its National Population Survey which will cover one percent of the population. This is the 6th survey of its kind since 2010. The survey will cover 60,000 districts, 14 million people, and over 5 million families. The length of time for the survey is from November 1 through 15.

Source: People’s Daily, November 2, 2015
http://politics.people.com.cn/n/2015/1102/c1001-27763541.html

VOA: Concerns about China’s New Law on Seven Year Jail Term for Spreading Rumors

Voice of America reported that, starting on November 1, China will launch a set of new laws. One new law states that those who spread Internet “rumors” could serve up to seven years in jail. The article said that the move could use the law as a tool for the current authorities to maintain stability while suppressing freedom of expression and the rights movement. A concern was also expressed as to whether the official media and local governments would be subject to legal actions if they were the ones to spread rumors. The article quoted comments from several rights activities. One activist said that the reason that any rumor would spread on the Internet was that there is a lack of freedom of expression, information, and the press in China, while the authorities are simply using legal measures to target those who wish to voice their opinions. Another activist said that the guideline for defining rumors was set by the authorities who try every means to trap those who criticize the government. The article also quoted people who questioned whether the official media would be charged with spreading rumors if they were the ones to make false reports about accidents or disasters.

Source: Voice of America, November 1, 2015
http://www.voachinese.com/content/china-new-law-20151101/3031717.html

Military Expert: U.S. New Nuclear Submarine Poses a Big Threat to China

Following the U.S. National Interest magazine report that the U.S. Navy is developing a new ballistic missile submarine to replace the existing fleet "Ohio" class ballistic missile submarine, CCTV conducted an interview of Chinese military experts Yin Zhuo and Cai Weidong. Yin Zhuo said that the U.S. cruise missile submarine is to be used to fight big wars against big countries like Russia or China. The weapon will pose a great threat to China. Cao Weidong expressed the belief that the United States’ development of the submarine is not intended to replace the aircraft carrier. The U.S. military can make use of nuclear submarines carrying cruise missiles, quietly move to the doorway of other countries, and implement long-range precision strikes. Cao said that the U.S. needs to set up a powerful "enemy" like China so as to develop its combat capability. 

Source: People’s Daily, October 27, 2015 
http://military.people.com.cn/n/2015/1027/c1011-27742197.html

Study Times: China Should Join the TPP at the Appropriate Time

On October 26, 2015, Study Times, a Communist Party publication close to Chinese President Xi Jinping, stated in a commentary that China should join the Trans-Pacific Partnership (TPP) at the appropriate time. 

The Study Times commentary rebutted the conspiracy theory which is based on the belief that the TPP is a means that the United States uses to isolate and contain China with the intent to drive China out of the Asia-Pacific economic and trade circle. The commentary expressed that the TPP rules are consistent with the direction of China’s reform in terms of establishing fair, open, and transparent market rules; streamlining administrative procedures and increasing public services; and enforcing environmental regulations and accountability. “China should pay close attention to the TPP and, as the domestic reforms move forward, it should join the TPP at the appropriate time and minimize the price to pay to join in.” 
Source: Study Times, October 26, 2015 
http://www.studytimes.cn/shtml/xxsb/20151026/15726.shtml

China’s Deflationary Spiral Is Worrisome

Yu Yongding, Senior Fellow at China’s Academy of Social Sciences stated that, based on the decreases in the Producer Price Index, China is now in the middle of domestic deflation and that the continued negative growth of PPI is worrisome. Yu made these remarks at a forum held on October 27, 2015. According to Yu, overcapacity is the primary cause of deflation. "On the one hand, we try to reduce overcapacity, which results in decreased effective demand. [On the other hand], the decline in effective demand in turn leads to an increase in excess capacity, forming a vicious cycle." If China cannot reduce overcapacity faster than the rate of the effective decrease in demand, then China’s economy will decline further into an economic recession. Yu Yongding stated, “This is the most serious challenge we currently face."   

Source: China Business News, October 27, 2015 
http://www.yicai.com/news/2015/10/4703058.html

The CCP 2nd Red Generation Supported Xi Jinping at a Forum to Commemorate Former CCP Leader

On October27, 2015, a forum was held to commemorate the 110th birthday of Gao Gang, a former Chinese Communist Party (CCP) leader who committed suicide in August 1954 due to the CCP’s internal purge. Gao Gang and Xi Zhongxun were very close friends. Together, they founded the CCP guerrilla bases in northwestern China in the 1930s.  Xi Zhongxun is Xi Jinping’s father. Xi Jinping is the current General Secretary of the Chinese Communist Party and the Chairman of China.

Many sons and daughters of the first generation leaders of the CCP (also called the 2nd red generation) gathered and spoke at the forum in Beijing. One of the speeches made particular mention of the close relationship between Gao Gang and Xi Zhongxun. 

Toward the end of the forum, Gao Gang’s daughter said, “Today, we commemorate and memorialize him so as to learn from and follow in his steps; the Party’s cause is the first priority. … Under the new situation, we all need to unite together around the CCP Central Committee that Comrade Xi Jinping heads. For the purpose of revitalizing the nation of China and realizing the China dream, we will each make our contribution!”

Source: China Red Tourism, October 27, 2015
http://www.crt.com.cn/news2007/news/ZPYANG/151027916532AGECC9EI5HG442F011G.html