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China’s Fixed Asset Investment Experiences Its Weakest Growth

According to statistics released by the China National Bureau of Statistics, China’s fixed asset investment rose at the slowest pace since 2001. The slowdown was due to the weak growth in investment in real estate development and in manufacturing.

Fixed-asset investment (excluding rural households) rose 10.9 percent in the period from January through August compared to the same period last year. The increase was less than the 11.2 percent for the period of January through July. 
Wang Baobin, senior statistician at the China National Bureau of Statistics, stated that this growth was slow as a result of the low investment in real estate development and in manufacturing. Real estate developers lack a willingness to invest due to pressure from the destocking of the housing market and from sluggish land sales. There is not much interest in investment in manufacturing because of excess capacity and lower prices and profits. 
Source: Caixin, September 13, 2015 
http://pmi.caixin.com/2015-09-13/100849281.html

Xinhua Criticizes the BBC’s Documentary about China as the Western Media’s Stereotyped Prejudice

Xinhua published an article criticizing the BBC’s documentary report about China. It said, “Western media always like wearing colored glasses to view China. The British Broadcasting Corporation (BBC) recently issued a 3-episode-documentary entitled China’s Secret, once again proving this point.”

“In this documentary, the reporter, wearing tinted glasses, opened a window to ‘view’ China for the British audience. The China outside the window was exactly in line with the stereotype that the West has been shaping for a long time: [China is] ‘a country that lacks freedom; the people must obey the system that the authorities set up.’ The purpose of the documentary was to use various means to strengthen and reinforce this stereotype.”

“The BBC claims that, through its lens, the [documentary] shows ‘a China you’ve never seen’ to the British audience. However, from the negative materials it deliberately chose and magnified with a zoom lens to the narratives based on the ‘reasonable imagination’ of Western logic, it has shown a hidden artificial modification. Most Chinese netizens are angry about the blatant but not clever production methods. They denounce the [Western media] because they are smearing China again.”

“In fact, in the Western media, a documentary such as this one by the BBC, which reflects Western prejudice, is not an individual case. … Behind the occurrence of this phenomenon, in addition to the personal factors of some Western media professionals, it reflects the anxiety and unease that some Western media and the Western world feel toward the rapid development of China. It also reveals the mixed feelings of envy and jealousy toward the rapid development of China.”

“No force will stop China’s development. China’s development will not slow down because of some Western media’s irresponsible remarks, or the way they discredit and distort China. [We] advise those Western media who would like to ‘discredit China,’ if you really want to reveal the inside of China, please take off the filter cover on your camera’s lens; otherwise it will only smash your own name.”

Source: Xinhua, September 8, 2015
http://news.xinhuanet.com/comments/2015-09/08/c_1116500645.htm

Huanqiu: Chinese Communist Party Official Speaks on the Party’s Legitimacy for the 1st Time

On September 11, 2015, Huanqiu, published an article titled, “A major breakthrough! Wang Qishan Commented on the ‘Legitimacy’ of the CCP for the First Time.” The article was first published on a public WeChat messaging app account xxdaguo, which People’s Daily manages. According to the article, it was the first time that one of China’s top leaders expounded on the legitimacy of the ruling party, an important breakthrough in the Chinese Communist Party’s discourse. Legitimacy in this context is a political concept, referring to the validity of the source of the Party’s power. “The basis of legitimacy is people’s approval. With the erosion of legitimacy, the political authority of the ruling government will be in crisis.”  

On September 9, 2015, China’s anti-graft chief Wang Qishan, head of the CCP Central Commission for Discipline Inspection (CCDI), gave a speech at the Party and the World Dialogue 2015 conference which more than 60 overseas politicians and scholars attended, including former South African president Thabo Mbeki and former Australian prime minister Kevin Rudd, in the Great Hall of the People in Beijing.

Wang stated that the ruling party’s mission is to fulfill its promise to the people and the way to realize it lies in strict discipline. "The legitimacy of the ruling party is derived from history and is the choice of the people," said Wang. “Whether the government has performed good deeds or not is determined by the people’s attitudes – whether they are happy with, satisfied with, and are willing to approve the deeds.” “The ruling party functions on behalf of the people and serves the people. It should establish correct core values and insist on such actions.”

China’s top leaders previously avoided using the word legitimacy as it has not been an issue – the legitimacy of the Party should not be questioned or denied. However, if the CCP always indulges in the outdated concept that “those who have conquered the nation should rule the nation, then it is not impossible that the CCP will repeat the mistake of the former Soviet Union (the collapse of the Soviet Union).” “From this point of view, speaking about the legitimacy of the ruling party implies a deep sense of crisis and urgency.”    

Sources: Huanqiu, WeChat messaging app account xxdaguo, www.ifeng.com, BBC Chinese, September 10 – 11, 2015
http://huanqiu.chinaiiss.com/html/20159/11/a7ceff.html
http://www.weixinjinghua.com/view/4070757.shtml
http://news.ifeng.com/a/20150910/44627205_0.shtml
http://www.bbc.com/zhongwen/simp/china/2015/09/150911_china_communist_party_regime

People’s Daily: China Saw Record Decline in Foreign Exchange Reserves

People’s Daily recently reported that, according to data that China’s central bank released, China saw a US$93.9 billion decline in foreign exchange reserves in August. This is the largest one month decline in history. As of the end of August, China’s official foreign exchange reserve level was at US$3.557 trillion. China’s reserves reached their peak in June 2014. Since then, the number has declined by US$435.8 billion. According to government experts in the field, the key reasons for the decline were the recent U.S. dollar appreciation and China’s capital outflows. The exchange rate between the Chinese currency and the U.S. dollar has seen significant fluctuation recently. However some observers expressed the belief that the Chinese economy will not see a disastrous capital outflow if the currency depreciation level is controlled to be below five percent. 
Source: People’s Daily, September 8, 2015
http://finance.people.com.cn/n/2015/0908/c1004-27553913.html

Registration for All of Li Ka-Shing’s Businesses Moved out of China

Well-known Chinese news site Sina recently reported that the Hong Kong company, Power Assets Holdings Limited (formally known as the Hong Kong Electric Company), merged into Cheung Kong Infrastructure Holdings and will be delisted from the Hong Kong Stock Exchange. Li Ka-Shing, the wealthiest man in Hong Kong and the eighth wealthiest in the world (Forbes 2012) controls both of these companies. Hong Kong Electric Company was founded in 1888 and is one of the oldest electric companies in the world. Mr. Li spent the past year moving his core business registrations to the Cayman Islands. This new merger concluded the operation that moves all assets that are under Li Ka-Shing out of Mainland China and Hong Kong. This latest merger also benefits the shareholders of Cheung Kong Infrastructure Holdings. Li Ka-Shing’s year-long re-organization triggered a large number of discussions on the future of the Chinese economy.
Source: Sina, September 9, 2015
http://finance.sina.com.cn/china/20150909/134623198914.shtml

China News: China Asked the U.S. to Stop Making Accusations

China News recently reported that Hong Lei, the spokesperson for the Chinese Ministry of Foreign Affairs, stated at a press conference that China is strongly against Internet hacking. When asked about China’s response to the comments that the U.S. National Intelligence Director James Clapper made when he pointed a finger at the Chinese state-sponsored hacking, Hong said “some people” in the U.S. government should stop making “groundless accusations” against China. Hong said China was “also a victim” of Internet hacking. He asked for respect and trust from the United States. Clapper’s earlier comments also mentioned that the Chinese hacking and spying activities penetrated widely into many areas of the U.S.’ interests, and thus he justified his position of strengthening U.S.’ Internet security.
Source: China News, September 11, 2015
http://www.chinanews.com/gn/2015/09-11/7519460.shtml

China’s Automotive Industry to Experience Period of Slow to Medium Growth

Xinhua recently reported on the expected growth rate of the automotive industry as disclosed at the recent International Forum (TEDA) on Chinese Automotive Industry Development. According to information that the Ministry of Industry and Information Technology provided during the recent forum, China’s automotive industry will experience low to medium growth for a long period of time. The statistics suggested that the growth rate in the auto industry slowed down from 24 percent between 2000 and 2010 to seven percent from 2010 to 2014. The industry is expected to see more intense competition with lower profit margins compared to previous years.

Source: Xinhua, Sept 13, 2015
http://news.xinhuanet.com/fortune/2015-09/13/c_1116544468.html

Beijing Youth Daily: Chinese Businessman Promotes Book about China’s Leader in U.S.

People’s Daily carried an article that had been published originally in Beijing Youth Daily. The article covered an interview with Chinese businessman George Daping Zhu who, in 2012, founded the publishing company called CN Times. Zhu recently negotiated a US$100,000 full page color ad in the New York Times. The ad contains a welcome slogan for Xi’s upcoming visit (to the U.S.) and also promotes the books that CN Times publishes. One featured publication is called, The Xi Jinping Era. Zhu plans to organize a series of media coverage and book review sessions to promote the book in the U.S. market. Currently the book is ranked 60,000 in Amazon with daily sales of 100-300 copies. According to Zhu, only three percent of market share is open to books offered by foreign publishers. Zhu plans to make a breakthrough in the U.S. market. He felt that the elite group in the U.S. does not know Chinese. They rely on limited information to understand the real picture of China. Zhu told Beijing Youth Times“In order to promote a nation, it is most important to promote its leader first. … For the Chinese culture to be known to the outside world, we must make a breakthrough in the U.S. market first.”  

Source: People’s Daily, September 13, 2015
http://media.people.com.cn/n/2015/0913/c40606-27576336.html