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Global Times: S&ED Should Pave the Way for Xi Jinping’s Visit to the U.S.

Prior to this month’s China-US Strategic and Economic Dialogue (S&ED), Global Times, which is affiliated with People’s Daily, published an editorial outlining Beijing’s goals in the current round of dialogue. 

To begin with, the S&ED should pave the way for Chinese President Xi Jinping’s visit to the US in September. As a major event concerning Sino-US relations and the last chance for talks during a state visit within Obama’s tenure, the visit will set the tone and lay a foundation for bilateral relations in the post-Obama era. 
Second, both China and the US need to cool the heated issues between the two through this high-level comprehensive dialogue. At the top of the agenda should be the South China Sea issue and cyber security. 
In addition, the S&ED should be used to abate strategic mutual distrust. 
Last, both countries should strive for a breakthrough in setting rules for economic cooperation. 
This is the first time [from the historic perspective] that China deals with the No. 1 power in the world to manage the relations of two powers. We cannot be that certain whether how much the potential harm would be to China based on the other side’s preventative measures and "containment." Nor are we too clear whether the mistruct between China and the US is something that can be solved, or it is something that is bound to exist between major powers, and thus has to be accepted and managed. We cannot even be sure whether the US irrational reaction to China’s rise can be resolved with reasoning, or it can only be handled through compitition based on strength. 
Sources: Global Times and Huanqiu.
http://www.globaltimes.cn/content/928345.shtml 
http://opinion.huanqiu.com/editorial/2015-06/6743089.html

Global Times: S&ED Should Pave the Way for Xi Jinping’s Visit to the U.S.

Prior to this month’s China-US Strategic and Economic Dialogue (S&ED), Global Times, which is affiliated with People’s Daily, published an editorial outlining Beijing’s goals in the current round of dialogue. 

To begin with, the S&ED should pave the way for Chinese President Xi Jinping’s visit to the U.S. in September. As a major event concerning Sino-US relations and the last chance for talks during a state visit within Obama’s tenure, the visit will set the tone and lay the foundation for bilateral relations in the post-Obama era. 
Second, both China and the U.S. need to cool the heated issues between the two through this high-level comprehensive dialogue. At the top of the agenda should be the South China Sea issue and cyber security. 
In addition, the S&ED should be used to abate strategic mutual distrust. 
Last, both countries should strive for a breakthrough in setting rules for economic cooperation. 
This is the first time [from a historic perspective] that China will deal with the No. 1 power in the world to manage the relations between two powers. We cannot be certain how much the potential harm will be to China based on the other side’s preventive measures and its "containment." Nor are we too clear whether the mistrust between China and the U.S. is something that can be solved or whether it is something that is bound to exist between major powers, and thus has to be accepted and managed. We cannot even be sure whether the U.S.’s irrational reaction to China’s rise can be resolved with reasoning or can only be handled through competition based on strength. 
Sources: Global Times and Huanqiu, June 23, 2015
http://www.globaltimes.cn/content/928345.shtml 
http://opinion.huanqiu.com/editorial/2015-06/6743089.html

How China Benefits from Its Talent Loss

On June 18, 2015, DWNEWS published an article titled, “Talent Loss Is Good for China.” According to the article, the total number of Chinese students who studied abroad from 1978 to 2010 reached 1.9 million. Of that number, only 0.63 million students returned to China. Some people think that China’s emigration phenomenon (including rich people’s investment emigration) reflects Chinese elites’ lack of confidence in China’s existing system. They vote with their feet. However, the writer of the article believes that this interpretation is an exaggeration. He listed three benefits resulting from the loss of talent. 

The first benefit is the remittances. In 2007, China’s overseas remittances were as high as $32 billion. Second is the free training. Developed countries have invested huge amounts in scholarships to educate and train these Chinese students. Finally is the cooperation. From 2001 to 2005, a number of the published papers involved the joint work done through cooperation between the Chinese scientists and American scholars. Of those papers, 70 percent involved overseas Chinese scholars’ work. 

The article suggested that China actively take advantage of the overseas talent pool so as to catch up and exceed the developed countries by making use of their advanced knowledge and technology.

Source: DWNEWS, June 18, 2015
http://culture.dwnews.com/news/2015-06-18/59661610.html

RFA: Thousands of Shanghai Residents Protested PX Project for 3 Days

From June 21 to June 23, 2015, hundreds to thousands of Shanghai residents from the Jinshan District of Shanghai City marched on the streets to protest a paraxylene (PX) petrochemical project to be relocated in the Jinshan District of Shanghai. They feared the pollution. Wu Lihong, an environmental campaigner, said, "PX plants are not welcome anywhere in China." He pointed out, "Movements opposing PX plants have formed in Xiamen, Dalian, Ningbo, and other cities." After local residents protested for three consecutive days, the district government announced through an Internet post that no PX project would be relocated to Jinshan district. The protest still continued, even after the Internet posting, as the local residents do not trust the government’s word.

On June 22, the demonstrators asked the Jinshan district top leader to step forward and to express his opinion on the PX project openly. The district leader did not show up. On the other hand, a lot of Internet discussions were posted on the PX project topic or on the Jinshan district. The local government dispatched a large number of police guards to the scene. Some people were beaten and a 16-year-old boy was arrested.

Sources: Radio Free Asia, June 22 & 24, 2015
http://www.rfa.org/mandarin/yataibaodao/huanjing/hc-06222015121332.html
http://www.rfa.org/mandarin/yataibaodao/huanjing/yf1-06242015101717.html
 

People’s Daily: Domestic Stock Market Lost RMB Nine Trillion in a Week

People’s Daily recently reported that between June 12 and June 19, the Chinese domestic stock market (also known as the A-Share Market), which is composed of the Shanghai Stock Exchange and the Shenzhen Stock Exchange, lost a total of RMB 9.24 trillion (around US$1.49 trillion). That amount equals the market value of PetroChina and ICBC combined. PetroChina is the world’s second largest oil and natural gas company and ICBC is world’s largest bank (in terms of market value). The Chinese A-Share Market has 175 million active accounts. The one-week loss was the equivalent of a loss per account of RMB 52,800 (around US$8,537). The two domestic stock exchanges temporarily unlisted 1,088 stocks due to the over-the-limit level of their price drops. The Chinese Securities and Futures Commission (SFC) started an investigation into potential illegal activities. Many stock market experts expressed the belief that the main cause of this stock market landslide was the Chinese government’s intent to delay the “easing” of the monetary policies.
Source: People’s Daily, June 20, 2015
http://finance.people.com.cn/n/2015/0620/c1004-27185308.html

Xinhua: CCDI Identified Three Key Black Holes of Central Government Owned Companies

Xinhua recently reported on an "issues list" that the Central Commission for Discipline Inspection (CCDI) of the Chinese Communist Party published on its official website. The “issues list” dealt with 26 central government owned companies. The CCDI identified three major “black holes” in the operations of these companies. The first was that half of the companies did not follow the right procedures in the procurement bidding processes – a large number of corrupt activities were found. The second “black hole” was that the management of overseas investments had become the “hardest hit region.” A lack of regulation and monitoring contributed heavily to the loss of state-owned assets overseas. The third “black hole” that the CCDI identified was the unlawful transfer of company wealth to relatives of those on the management teams. The corruption situation in these companies demonstrated a trend towards a “family operation” model. The CCDI called for deepened reforms to prevent turning state-owned assets into personal gold mines.
Source: Xinhua, June 20, 2015
http://news.xinhuanet.com/yuqing/2015-06/20/c_127934581.htm

Global Times: South China Sea Fleet Called Reserves for Exercise

Global Times recently reported that the Chinese Navy’s South China Sea Fleet called the reserves from several provinces to participate in a joint naval military exercise. The purpose of the exercise was to test the reserves’ rapid response capabilities. The exercise focused on shooting down incoming enemy aircraft and on precise attacks against deep-sea submarines. Additionally, the exercise included the scenario of a lawful inspection on a commercial vessel which forcibly attempted passage. Tank landing ships were also involved in the exercise. A naval officer responded to media inquiries on the timing of the exercise. He stated that this exercise had nothing to do with the current South China Sea situation or with international relations – it was just a routine exercise. However, he added that, as China improves its naval defense power, the value of demonstrating deterrent capabilities is obvious.
Source: Global Times, June 20, 2015
http://mil.huanqiu.com/china/2015-06/6733551.html

Report Shows Four Major Unhealthy Trends in Central Enterprises

China News published an article on the report that the Central Leading Group for Inspection Work recently released. Since March of this year, the Central Leading Group has dispatched 13 inspection teams to report on 21 central enterprises. The article said that the findings indicated that the companies inspected exhibited four major unhealthy trends. The first involved the inappropriate use of funds for meals and entertainment, luxury display art work, conference centers, hotels, and exercise training facilities. The second was that favors were issued during promotions and any conflict of interest when using family members was ignored. Third was the corruption among company leaders when they used state owned assets for personal gain and when there were loopholes in state asset supervision. Fourth was the formation of interest groups using family members to take possession of state owned assets. The article also listed the names of the companies under each of the four categories. China Mobile was the only company, out of the 21 in the report, that was not on that list.

Source: China News, June 19, 2015
http://www.chinanews.com/gn/2015/06-19/7354184.shtml