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Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

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Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

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Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

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The CCP’s Performing Arts Troupes in the U.S.

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Caixin: Fukuyama Gives Priority to the Rule of Law

In its June 1 issue, Caixin, a media group that features financial and business news in China, published an interview of Francis Fukuyama, author of the well-known book, The End of History and the Last Man (1992). In his book, Fukuyama claimed that liberal democracy was the last stop on history’s long road. On June 15, Caixin also published the interview on its English website.


In recent years and with the rise of economic powerhouses linked to political systems such as China’s that do not rely on the one-man-one vote model, memories of what many called democracy’s Cold War victory have dimmed. In Caixin’s recent interview in Beijing, Fukuyama said he remains committed to the premise that the modernizing human family is marching toward political systems that balance the rule of law, "state capacity," and democracy. 

Fukuyama stated that it is possible for a strong state to succeed economically without democracy, but that democracy builds stability and legitimacy, which, in turn, supports growth and helps governments survive economic crises. "I think that, in the long run, transitioning to democracy makes the whole system stable and legitimate and therefore is good for growth." Fukuyama continued, "I think that’s why most rich countries in the world today are actually liberal democracies." 

In answering the question on the relative importance of state capacity, the rule of law, and accountability in today’s China, Fukuyama gave priority to strengthening the rule of law. Discussing his interest in China, besides its size, and that it has never been integrated into the world system, Fukuyama observed, "There is so much in Chinese history about being a civilization that people aren’t aware of." It was the richness of that tradition that he found really fascinating.

Fukuyama also questioned the sustainability of China’s growth model, as well as the lower productivity of its state-owned enterprises compared to its private sector. 

Source: Caixin Online; Caixin Weekly
http://english.caixin.com/2015-06-15/100819331.html 
http://weekly.caixin.com/2015-05-29/100814472.html
Briefings | | |   Government/Politics

Japan’s Four Hidden Plots against China in the South China Sea

Xinhua published a series of articles, including an editor’s introduction, on its “International Channel” commenting on Japan’s involvement in the South China Sea issue. 

Editor’s introduction: “In recent years, as the U.S. has been adjusting its Asia-Pacific strategy and openly intervening on the South China Sea issue, the Japanese government has also been stepping up its intervention. Recently, in addition to the U.S. military fulfilling its requirement to start military patrols in the South China Sea and performing military exercises with and providing equipment to the Philippines, Japanese Prime Minister Shinzo Abe has also repeatedly accused and discredited China. He has done so at the G7 summit and on many other occasions."  
“Although the South China Sea dispute has nothing to do with Japan, the Japanese side is actively getting involved and continuously increasing its intervention efforts. Just what is Japan plotting as it hides behind the scenes?” The series then listed the following four agendas that indicate what Japan is "plotting" against China: 
Plot I: to divert public attention in the international media from Japan’s history problem [in World War II]; 
Plot II: to stir up the "China threat theory" in order to create a favorable atmosphere for [Abe’s] security bill; 
Plot III: to use the tactic of “relieving a besieged ally by attacking the home base of the besiegers,” thus trapping China on the South China Sea issue; 
Plot IV: to curb the rise of China by creating an Asian version of NATO. 

Source: Xinhua: June 17, 2015 
http://news.xinhuanet.com/world/2015-06/17/c_127922033.htm

Briefings | | |   Geo-Strategic Trend

Qiushi: Promote Positive National Image of China in Multiple Ways

On June 3, 2015, Qiushi, the Chinese Communist Party School and the Chinese Communist Party Central Committee’s political theory website, republished an article from Chinese Social Sciences Today, titled, “Avoid Single-Mode Propagation of China’s National Image.” 

According to the article, Western countries have a serious misunderstanding of China’s national image due to the fact that China’s official media always exaggerate the positive aspects of China and the Chinese government. To display a responsible, positive, and pragmatic national image of China, China’s official media may sometimes, at the same time that they showcase the greatness of China’s achievements, “skillfully and appropriately” present some problems, difficulties, or even failures that China faces so as to demonstrate to the world that China is willing to be humble, accept well-intentioned criticism, and be active in solving problems. In addition, the article recommended using movies, TV operas, books, performances, cultural exchanges, and activities to further promote China’s national image.
Source: Qiushi, May 3, 2015
http://www.qstheory.cn/international/2015-06/03/c_1115495442.htm
Briefings | | |   Government/Politics

With No Confidence in the Future, the CCP Departmental and Regional Officials Stay Idle at Work

On May 20, 2015, People’s Tribune, which is under People’s Daily online, published an in-depth analytical article on why Chinese Communist Party officials do not take action in applying the CCP Central Committee’s policies, why they are waiting and remaining idle, and why they have the mentality of not causing problems or not messing things up. 

The reasons behind the officials’ inaction are:

1) They lack political confidence in China’s future.
2) As the anti-corruption movement continues, they are uncertain about their own futures.
3) They find the policy changes and current comprehensive reforms too confusing.

Source: People’s Tribune, May 20, 2015
http://paper.people.com.cn/rmlt/html/2015-05/20/content_1574755.htm

Briefings | | |   Government/Politics

RFI: China Issues Internet IDs to Chinese Citizens

Radio France International (RFI) Chinese Edition recently reported that the Chinese government has initiated a program of rapid issuance of “Internet IDs” to its citizens at a speed of 100,000 issued per day. The “Internet ID,” also known as the “eID,” will be integrated into the Ministry of Public Safety’s Citizen’s Online Identification System and the personal identification systems of the banking industry. The eID system was certified by the National Passcode Administration in 2013, with a pilot program going into effect in the City of Karamay in Xinjiang. Starting in 2012, the Ministry of Public Safety worked closely with the Industrial and Commercial Bank of China (ICBC) to use a “strategically” embedded eID in the ICBC-issued IC (Integrated Circuit) debit cards and reached its capacity of producing 300,000 cards daily. In the market value of its assets, ICBC is generally considered the largest bank in the world.
Source: Radio France International, June 9, 2015
http://tinyurl.com/p3lt529
Briefings | | |   Information/Technology

Xinhua: China Sternly Refuted the Philippines on the South China Sea Issue

Xinhua recently reported that, at the 25th Conference of the Member Countries of the United Nations Convention on the Law of the Sea, held in New York on June 12, the representative from the Philippines delivered harsh criticism against China. The Head of the Chinese Delegation, Wang Min, “sternly refuted” the Philippines’ accusations. Wang stated that China’s land reclamation activities in the South China Sea are exercised solely under China’s sovereignty and that the purpose was to improve the living conditions of China’s citizens as well as to provide better maritime search and rescue missions. China considers these to be its international responsibilities. The construction work will also improve the freedom of navigation for all countries. China was also against any “single-sided” maritime arbitration – Wang called for peaceful nation-to-nation negotiations based on international laws to resolve all South China Sea related issues. 
Source: Xinhua, June 13, 2015
http://news.xinhuanet.com/world/2015-06/13/c_1115605446.htm
Briefings | | |   Geo-Strategic Trend

EU Chamber of Commerce: A Quarter of EU Companies in China Are Pessimistic

Well-known Chinese news site Sina recently reported that, not long ago, the European Union Chamber of Commerce in China released its annual report on business confidence. The report showed that the EU companies in China are reconsidering their strategy in the Chinese market. The report pointed out that the continuing top challenge remains the on-going slow-down of the Chinese economy. More and more EU companies are laying off people based on their pessimistic expectations. According to the report, around a quarter of the companies surveyed expressed deep concern about their profitability in the near future. Among the industrial companies, only 13 percent of them expected growth and 28 percent expected profit over the next two years. The top three categories of companies, including machinery, legal, and transportation/logistics do not expect to expand their businesses this year. Around 39 percent of the EU companies in China are planning on cost-cutting activities. The Chamber sent their survey to 1,474 EU companies currently doing business in China.
Source: Sina, June 11, 2015
http://news.sina.com.cn/c/2015-06-11/011631936498.shtml
Briefings | | |   Economy/Resources

SOE Reform: The Party Must Assume the Responsibility for Managing SOEs

People’s Daily carried an article which Outlook Weekly had originally published. The article stated that, recently, the Central Leading Group for Comprehensively Deepening Reforms passed two opinions on State Owned Enterprise Reform. One is called the “Opinion on Being Persistent in the Party’s Leadership and Development during State Owned Enterprise Reform.” The other is called the “Opinion on Strengthening and Reform of State Owned Enterprise Asset Supervision and the Prevention of State Owned Enterprise Asset Loss.” The article stated that these two Opinions have set the tone from the central administration and provided a timely guarantee to ensure the smooth progress of State Owned Enterprises reform.

According to the article, of the two opinions, the Opinion on “Party Must Assume Responsibility for Managing SOEs” attracted the most attention but it was not the first time that it was brought up. The article listed similar proposals made in the Fourth Conference of the 16th Congress of the CCP in 2004 and the National Party Development within State Owned Enterprise Conference in 2009. Based on the comments from the research experts quoted in the article, defining the Party’s legal position within the company is very sensitive because the current company structure has a board of directors as the core leadership team. Therefore company policy may need to be modified to define the Party’s legal position within the corporation. It is expected that more policies on this subject will be introduced in the near future.

Source: People’s Daily, June 14, 2015
http://politics.people.com.cn/n/2015/0614/c1001-27150930.html

Briefings | | |   Government/Politics