Chinascope – Page 644

Qiushi: Seeking New Advances in Marxist Political Economy

November 25, 2015, a day after Xi Jinping chaired a politburo study session on the Marxist political economy, Qiushi Journal, a semi-monthly publication of the Central Committee of the Chinese Communist Party (CCP), published a commentary titled, "Extending New Spheres of the Marxist Political Economy in Contemporary China." It called for creatively contributing to the evolution of the Marxist political economy.

The commentary recalled that, since 1949, all the way through the reform and opening up years, four former CCP leaders, Mao Zedong, Liu Shaoqi, Deng Xiaoping, and Chen Yun, all paid attention to the study, research, and application of the Marxist political economy.

As China’s reform enters a period where it must fight the toughest battles, the interests that a number of social groups have expressed have become more diversified and economic development has displayed growing uncertainty. To seek the right way forward, to respond to the challenges of our time, to showcase the benefits of the socialist system, and to offer theoretical guidance in the practice of grand historic reform, the Marxist political economy is called for in order to fulfill its historic mission with characteristics that mark open-mindedness, inclusiveness, and evolving with the changing times.

The commentary stated that, in the face of the extremely complex economic situation at home and abroad, as well as varied economic phenomena, the study of the Marxist political economy could help in the conduct of an economic analysis in a scientific way, improve the capability of managing a socialist market economy, and better answer problems related to economic development.

The commentary concluded that the creative evolution of the Marxist political economy requires us to take into consideration the relationship between politics and the economy, government and markets, the economy and society, and China and the world. It also requires us to have a firm grasp of the situation in China while borrowing from helpful elements in Western economics. This will bring forth the great momentum, vitality, and potential of the theoretical creativity that underpins China’s sweeping economic and social development, and will facilitate the contribution of Chinese wisdom to the Marxist political economy.

Source: Qiushi Journal, November 25, 2015

http://www.qstheory.cn/wp/2015-11/25/c_1117249400.htm

Briefings | | November 28, 2015 | Economy/Resources

Western Luxury Brands Will Close More Stores in China

With discounts, price reductions, and store closings, 2015 may have been the most turbulent year for luxury goods in China. According to Fortune Character Research Institute, 78 percent of the US$91 billion that Chinese spent in 2015 was spent outside of China. As for Western brand names in China, last week Louis Vuitton announced closure of three stores in China. In 2015 alone, 83 percent of Western luxury brands closed some of their stores. In the past several years, Prada closed 16, Chanel 11, and Burberry three. Fortune Character Research Institute predicted that the trend to close stores will continue and will be more widespread. In 2016, over 95 percent of luxury brands are expected to close some stores.

Source: The Paper, reprinted by Xinhua, November 25, 2015

http://news.xinhuanet.com/fashion/2015-11/27/c_128472144.htm

Briefings | | November 27, 2015 | Economy/Resources

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.

Continue reading →

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

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

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.”