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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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China to Require Censoring Personnel for Internet Video Providers

On June 10, Beijing city’s local newspaper, Jinghua Times (京华时报), reported that the State Council Legislative Affairs Office called for public comment on the "Administrative Approaches to the Dissemination of Audio-visual Programs via the Internet or Other Information Networks (revised draft)" (hereinafter referred to as the "draft"). According to the draft, Internet video broadcasters should be staffed with professionals who review the program contents. If broadcasters do not do so, they should be given a warning for correction and subject to a fine up to 30,000 yuan ($US 4,834). In addition, the current affairs audio-visual news programs that the Internet service providers broadcast should be those programs that regional or city level radio stations or TV stations already produced and broadcast. This means that homemade current affairs news programs are to be banned from the Internet.

Source: Jinghua Times, June 11, 2015
http://epaper.jinghua.cn/html/2015-06/11/content_206133.htm
Briefings | | |   Information/Technology

Li Keqiang: Cancel Household Register Restrictions and Diploma Requirements for Entrepreneurs

Chinese Premier Li Keqiang chaired a State Council Executive Meeting on June 4, 2015. To facilitate innovation and entrepreneurship in China, the meeting decided to cancel the household register restrictions and academic diploma requirements for entrepreneurs. However, residence restrictions in Beijing, Shanghai, Guangzhou, and Shenzhen will not be canceled within a short period of time due to the limited capacity of these first tier cities. The 2nd and 3rd tier cities will take the lead to attract new entrepreneurs from outside, who may or may not have academic diplomas. “As long as you have the will and ability to start a business, no matter where are you from, and regardless of your educational level, the policies will support you.”

Source: People’s Daily, June 7, 2015
http://politics.people.com.cn/n/2015/0607/c1001-27116255.html

Briefings | | |   Government/Politics

Oriental Daily: The CCP Deceived the World about the Yangtze River Shipwreck Rescue.

On June 7, 2015, Hong Kong Oriental Daily published a commentary titled, “The CCP Deceived the World about the Yangtze River Shipwreck Rescue.” On June 1, 2015, a Yangtze River Passenger Cruise Ship, “The Eastern Star” capsized. Of the 456 people on board, only 14 people survived. Seven swam ashore; five drifted to other places where local residents saved them, and “rescue teams” saved two more. The other 444 people either died or were missing. This shipwreck caused the most deaths since 1949, the year when the People’s Republic of China was established. From June 2 to June 5, the Chinese Communist Party (CCP) Propaganda Department issued 5 orders to restrict and ban media coverage.

On June 2, the CCP Propaganda Department notified all media that no reporters were allowed to visit the shipwreck area or conduct interviews. Many reporters ignored the ban and still interviewed some survivors and witnesses. Their articles could not be published. A 2nd notice from the Propaganda Department stated that all media in China could only publish relevant Xinhua News articles or broadcast the China Central Television (CCTV) footage. "The news must highlight the CCP Central Committee’s attention to the incident, to the rescue efforts, and to the treatment of the victims. Do not describe the details of the tragedy. Whoever violates the rules must be held accountable." 

On June 3rd, Prime Minister Li Keqiang held a moment of silence in front the victims’ bodies at the scene. The CCP Propaganda Department disallowed any mention of it so as to avoid any misinterpretation that the silence was for the students killed on Tiananmen Square in 1989. Also on June 3, China invited 75 reporters from overseas to the rescue site. CCTV reported that foreign reporters praised the Chinese government for how it handled the emergency. 
On June 5, the Foreign Ministry Information Department organized 30 reporters from 20 overseas mainstream media to board the wrecked ship and learn the latest developments on the rescue. The foreign media reporters did not know that what they saw was well choreographed performances. About two hundred Chinese reporters who rushed to the place could not get anywhere near the scene, let alone “board the ship.” 

The Oriental Daily commentary concluded, “China’s official media said the rescue efforts ‘touched China.’ Actually, everything was planned in detail and under strict media control. The CCP deceived the world.”

Source: Hong Kong Oriental Daily, June 7, 2015
http://hk.on.cc/cn/bkn/cnt/commentary/20150607/bkncn-20150607000317468-0607_05411_001.html

Briefings | | |   Government/Politics

Exports Slide Further While Imports Plunge

According to China’s General Administration of Customs, in May, Chinese exports fell for the third consecutive month, while imports plunged to the lowest level in three months. These developments highlight the adverse Chinese domestic economic environment, which may trigger further monetary policy adjustments. 

The total trade value in May was down by 9.7 percent from April. Exports fell 2.8 percent, and imports 18.1 percent, with the trade surplus increasing by 65 percent. In the first five months, the U.S. and ASEAN demand helped prevent a more substantial decline in Chinese exports as the exports to Europe and Japan dropped. U.S-China trade went up by 2.8 percent and Europe-China trade was down by 7.1 percent. 
Source: People’s Daily, June 9, 2015 
http://paper.people.com.cn/rmrb/html/2015-06/09/nw.D110000renmrb_20150609_3-01.htm
Briefings | | |   Economy/Resources

Phoenix TV Website: China’s Bull Market Is a Long Term Necessity

 Liu Shan, deputy editor-in-chief of China Business Times, reported on an interview of an anonymous "authoritative insider" on the Chinese economy. People’s Daily published the interview on its front page on May 25. Then on May 26, the Hong Kong based Phoenix Television’s website carried an analysis of the interview.

One of the things that People’s Daily indicated in the interview, according to Liu, is that "China’s bull market is a long term necessity."

People’s Daily‘s interview of the "authoritative insider," when commenting on China’s economic downturn, acknowledged the vital effect of investment on economic growth, "At this stage of China’s development, whether savings can be transferred to investment will be the key to stable economic growth. Given the high rate of household savings, the Chinese people are having trouble getting a sustainable return on assets. At the same time, the real economy and key construction projects lack sufficient funding. More financing channels need be explored to tap into the potential of private capital and to transfer more savings into investment."

It is clear from the "authoritative insider" that the public needs sustainable income from savings and the real economy need financing. The most straight-forward approach is to increase direct financing. This can only be done through the capital market; that is, by directing savings into the pre-IPO market, the equity market, and the bond market so as to generate income based on people’s cash assets. As a result, sustaining a healthy bull market should have been a strategic decision of the central government, rather than a short term expediency.

The central government would also like to achieve the dual effect of stabilizing growth while reducing leverage. Again this approach would effectively increase direct financing. Through direct financing, banks’ loan-deposit ratio could be lowered. We consider that reducing leverage on equity financing by the regulatory authorities is not meant to suppress the equity market. Instead, it is meant to prevent the bubble from growing too fast to lead to a sudden burst. If regulatory measures are appropriate, we expect this round of bull market will last at least three years.

Source: Pheonix TV Online, May 26, 2015
http://finance.ifeng.com/news/special/xiaobg74/

Briefings | | |   Government/Politics

Xinhua: Insulting China with Devil’s Curse; How Does Aquino Become So Brazen

Xinhua published a group of articles in its web magazine, International Sphere (Volume 548) striking back at Philippine President Aquino’s remarks during his visit to Japan in which he compared China to Nazi Germany. In the introduction, the editor wrote, “During his visit to Japan, Philippine President Aquino III made irresponsible remarks regarding the South China Sea issue. This was expected. What was surprising was that, as a head of state, Aquino totally disregarded the bottom line in diplomatic relations, openly talking nonsense, and comparing China’s reasonable and lawful activities in the South China Sea with Nazi Germany. In openly insulting a big country that has normal diplomatic relations with the Philippines, it is losing the national dignity of the entire Philippines. If a head of state makes such a downcast speech, how can the nation be noble and the people have pride!” 

Similar language was used in the collection of articles. For example, “If the Chinese did not have such good-natured composure, the Philippines might have come to know how many big slaps on the mouth they have suffered.” “Why does the Philippines dare to be so rampant, continuously fan the flames, and maliciously provoke? An important reason is that there are external forces in back of them to support them.” 

Source: Xinhua, June 5, 2015 
http://www.xinhuanet.com/world/jrch/548.htm

Briefings | | |   Geo-Strategic Trend

Xinhua: G7 Remains but the World Has Changed

Xinhua published a commentary on June 6 to give its perspective on the upcoming G7 Summit scheduled to start on June 7. The commentary observed that, 40 years after the birth of the G7, the United States is still fond of acting like the “world’s police”; Japan is still carrying its historic burdens; and Germany, France, and Britain are still fighting each other under the “European Union” cover. However the world outside the ancient castle holding these closed-door meetings has changed. The G20 that includes the developing countries is now standing at the center of the world stage. Take a look at the items on the G7 agenda. None of the issues can be resolved without the participation of the developing countries. The author concluded that the days of the G7’s global monopoly on agenda-setting and development-leading are long gone.
Source: Xinhua, June 6, 2015
http://news.xinhuanet.com/world/2015-06/06/c_127885660.htm
Briefings | | |   Government/Politics

Xinhua: Communist Party Plans to Establish Branches in Social Organizations

Xinhua recently reported that, on May 29, the Politburo of the Chinese Communist Party Central Committee decided to establish Party branches in the leadership sections of all levels of the government, people’s groups, economic organizations, cultural organizations, social organizations, and other organizations. The Communist Party is determined to ensure a strong organizational guarantee that it maintains overall leadership as well as central coordination. The Party expressed the belief that the new organizational model is required to deepen the nationwide reform and to ensure the rule of law. The Communist Party used to have similar guidelines but the newly reinforced rules changed the wording “could establish branches” to “should establish branches.” A new term “Social Organization” was added to the language of this new Party decision. Analysts suggested that a large number of new types of organizations have been established recently and the Communist Party does not have any presence in most of these social bodies. Communist Party General Secretary Xi Jinping chaired the Politburo conference that passed the decision.
Source: Xinhua, May 30, 2015
http://www.ce.cn/xwzx/gnsz/gdxw/201505/30/t20150530_5502293.shtml
Briefings | | |   Government/Politics