Chinascope – Page 653

The Continuous Drop of China’s Foreign Exchange Reserves Demonstrates Intense Capital Outflow

On October 7, 2015, FX678.COM, a Forex & Gold media in China, published an article titled, “Foreign Exchange Reserves Data Demonstrates Intense Capital Outflow; Chinese Yuan (Renminbi) Faces the Risk of Further Depreciation.”

China’s foreign exchange reserves dropped US$43.26 billion in September 2015 after a record drop of US$93.93 billion in August. The continuous decline in the foreign exchange reserves indicates that depositors are worried about China’s economy. As a result, capital outflow from China has accelerated.

“The more we want to protect the renminbi and cut interest rates, the more we stimulate depositors to transfer their assets abroad by selling renminbi. Devaluation of the renminbi will not only lead to inflation, but also increase the prices of the commodities that China exports."

Source: FX678.COM, October 7, 2015
http://news.fx678.com/C/20151007/201510071456342079.shtml

Briefings | | October 8, 2015 | Economy/Resources

Heated Online Discussion: The Chinese Communist Party Is Not the Same as China.

On October 7, 2015, Central News Agency, the state news agency of Taiwan, published an article titled “Mainland China Media Continues the Taboo Topic: the Chinese Communist Party (CCP) Is Not the Same as China.”

On October 1, 2, and 6, 2015, during China’s national holiday period, three well-known Chinese published articles explaining why they think that, “The Chinese Communist Party is not the same as China.”

On October 1, 2015, the 66th anniversary of the People’s Republic of China (PRC), He Weifang, a law professor at Peking University, published a blog article saying, “Since my country has a long history and a splendid civilization, it must not be a country that exists for only just over 60 years.”

On October 2, 2015, Ren Zhiqiang, China’s famous real estate developer, published a long blog article titled, “A New China or a New Regime.” Over 100,000 people read the article in just a few hours, but the article was soon removed from Internet.

On October 6, 2015, Bao Tong, who used to be the political secretary for the former CCP General Secretary Zhao Ziyang, published an article on Radio Free Asia. In the article he stated, “I am more than 10 years older than the People’s Republic of China. I am not able to call the PRC my motherland.”

On October 7, 2015, the Paper, a media in Mainland China, published an interview article on the treatment of parasitic diseases in which the words “new regime” were used several times, including in the article title. The CCP’s official phrase in such a context has always been “new China.” It seems that the Paper article purposely continued the discussion on this taboo topic.

Source: Central News Agency, October 7, 2015
http://www.cna.com.tw/news/acn/201510070434-1.aspx

Briefings | | October 8, 2015 | Government/Politics

Caixin: Protection of China’s Lawyers Needs to Be Put into Practice

Hu Shuli, editor-in-chief of Caixin, a Beijing-based premier provider of financial and business news and information, published an editorial at the end of September calling for the authorities to do a better job of protecting China’s lawyers.

The editorial detailed the authorities’ several recent moves to tackle the issue that lawyers in the country are being marginalized. Xi Jinping headed a group that was formed to deepen the reform efforts. On September 15, the group finished a document addressing the plight of lawyers. A day later, top judicial authorities, including the Supreme People’s Court and several ministries that handle legal affairs, issued a regulation that details measures to safeguard the rights of attorneys.

The editorial acknowledged that, "Lawyers have little power when dealing with government-backed courts and prosecutors. Fully protecting the rights of lawyers remains a complex issue, given that the judicial system is part of the establishment"

The editorial also stressed that China needs long-term stability and order, conditions that will not come about without the help of lawyers. The editorial concluded, "The authorities have shown they want to address the many problems that lawyers face when doing their jobs. We may see some progress. However, they should also realize that they need to act now and fast to provide the public with the legal protection it deserves. A good place to start is by letting lawyers do their jobs."

Source: Caixin, September 28, 2015

http://opinion.caixin.com/2015-09-28/100857799.html

Briefings | | October 7, 2015 | Government/Politics

Caixin: China Lowers Down Payment Requirement to Prop up Sagging Property Sector

The People’s Bank of China, China’s central bank, and the China Banking Regulatory Commission, its banking regulator, said they would lower the minimum down payment requirement for first-time home buyers to 25 percent, from the previous 30 percent, in cities that do not have restrictions on purchases.

This drop in the down payment requirement applies to major cities other than Beijing, Shanghai, Guangzhou, Shenzhen, and Sanya.

Yan Yuejin, a housing industry analyst with the Yiju Research Institute, explained that, for the past several decades when Chinese residents have been allowed to purchase residential housing, this 25 percent down payment requirement is quite rare.

Yan reasoned that the timing of this policy announcement was meant to stimulate housing sales during the extended China’s national day holiday season that started on October 1. He held the view that the fourth quarter would be good window for home purchase now that the down payment level has come down.

Another analyst, however, Zhang Hongwei, of Tongce Consultancy, did not expect the need for a housing stimulus to go away any time soon, given the downward pressure on China’s economy.

Source: Caixin, October 1, 2015

http://companies.caixin.com/2015-10-01/100860161.html

Briefings | | October 7, 2015 | Economy/Resources

People’s Daily: Three Died in Conflict at Chinese Copper Mine in Peru

People’s Daily recently reported that a conflict between farmers and the police caused three deaths and seventeen injured in Peru, where farmers living in Cusco and Apurimac opposed the copper mining operations to be developed by a Chinese owned copper company. The China Minmetals Group bought Las Bambas Copper Mine this August for US$7.4 billion. According to Peruvian President Humala, this copper mine will become the largest of its type in the nation. Local farmers were very much worried that the mine would pollute the local water sources that they depend on. They asked the Chinese company to adjust its environmental protection plan. In addition to that, they also demanded that the company hire more locals for mining jobs. The government defended the police by explaining that the police had to use lethal force for self-defense.

Source: People’s Daily, September 30, 2015

http://world.people.com.cn/n/2015/0930/c1002-27651887.html

Briefings | | October 6, 2015 | Geo-Strategic Trend

BBC Chinese: U.S. DNI Clapper not Optimistic about the Internet Spying Agreement with China

BBC Chinese recently reported that James R. Clapper, the Director of National Intelligence (DNI) of the United States, said “no” in a Senate hearing when asked by Senator John McCain whether he was optimistic about the U.S-China agreement that neither country would conduct economic espionage in cyberspace. Clapper explained that the effectiveness of the agreement remains to be seen. He also recommended that U.S. intelligence analysts keep an eye on activities on the Chinese side, since the current cyberspace situation is almost like the “Wild Wild West.” However, Clapper also mentioned that one of the key questions was whether Internet based spying should be banned or not – the United States conducts similar activities on “public platforms” as well. He added that it’s very hard to determine how involved the Chinese government really is.

Source: BBC Chinese, September 29, 2015

http://www.bbc.com/zhongwen/simp/world/2015/09/150929_us_china_cyber

Briefings | | October 6, 2015 | Information/Technology

Caixin: September Chinese Manufacturing PMI Continued to Decline

The well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for September, which was 47.2. It is lower than the August number, which was 47.3. Caixin PMI was formerly known as HSBC PMI. It was a well-respected economic indicator monitored globally by financial institutions. The Caixin PMI has been on the decline for seven consecutive months so far. He Fan, Chief Economist at the Caixin Think Tank, observed that the overall Chinese manufacturing industry remains weak, which results mainly from the lack of demand. The key indicator that dragged down the PMI number was industrial output, which means manufacturers were producing fewer products. Total new business and new exports were still on the decline. The number of new export orders suffered a monthly decline, establishing a record since March 2009. The employment level in manufacturing shrank to an 80-month low. 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, October 1, 2015

http://pmi.caixin.com/2015-10-01/100860117.html

Briefings | | October 6, 2015 | Economy/Resources

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.”