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China’s Reaction to Trump’s Election Win

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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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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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China Review News: Pakistan-China Economic Corridor Will Unite Europe and Asia

A recent China Review News commentary addressed the issue of the Pakistan-China Economic Corridor (PCEC). It stated,"The economic corridor that China and Pakistan plan to build between them offers the first strategic sea port in China’s ‘One Belt, One Road’ plan. … China’s ‘One Belt, One Road’ plan and the Asian Infrastructure Investment Bank will rekindle the thousand-year old dream of uniting Europe and Asia together." 

The commentary said that the PCEC will connect China’s Kashgar to Pakistan’s Gwadar and will include roads, railways, and energy and commercial trade routes. Pakistan will serve as a bridge to connect China to Central and South Asia, forming an economic zone population of 3 billion people.

"This corridor allows China to connect directly to the Arab Sea, giving China the shortest path to connect to Europe, Africa, and the Middle East." "The shipping of energy and cargo in and out of China will be shortened by 4,000 miles. It will take only 10 days, instead of 45 days [via the Malacca Strait], for China to ship its goods to the Middle East and Africa."

Pakistan also offers the best channel for China to connect to Islamic countries. It is China’s firmest ally. It is also the only Islamic country with a nuclear capability. Its military cooperation with China can stabilize the relationship between the two countries and reduce the risk of the "One Belt, One Road" zone.

Source: China Review News, May 3, 2015
http://hk.crntt.com/doc/1037/3/6/4/103736425.html

Briefings | | |   Geo-Strategic Trend

Xinhua: Banks Saw Concentrated Outbreak of Nonperforming Loans

Xinhua recently reported on the first quarter financial reports that multiple major banks released on May 1. The report indicated that the net profit growth rates of the top five Chinese commercial banks all fell into the "realm of one percent.” As the Chinese macro economy slows, the whole banking industry has been dealing with many challenges. In the first quarter, the top five banks saw their nonperforming loans double on a year-over-year basis. According to senior experts at PricewaterhouseCoopers (PwC), more and more overdue loans are in the process of becoming nonperforming loans. PwC recently published a new report which predicted that most banks would post end-of-year-reports for 2015 showing only single-digit growth and that some would even see negative growth. The total of the nonperforming loans is still rising. In the meantime, the risk resulting from the lower quality of credit based assets is continuing to growing.
Source: Xinhua, May 1, 2015
http://news.xinhuanet.com/fortune/2015-05/01/c_127755182.htm
Briefings | | |   Economy/Resources

China News: ASEAN Leadership Summit Took a Stand on the South China Sea Issue

China News recently reported that Hong Lei, the Spokesperson for the Chinese Ministry of Foreign Affairs, held a press conference in which he commented on the position the Association of South East Asian Nations (ASEAN) took at its 26th Leadership Summit. ASEAN expressed its deep concern about China’s land reclamation activities, which may “undermine peace, security, and stability in the South China Sea.” The Summit Statement also “reaffirmed the importance of maintaining peace, stability, security, and freedom of navigation both in the South China Sea” and in flights over it as well. The Statement urged the speedy conclusion of a Code of Conduct in the South China Sea. Hong said China is “gravely concerned” about ASEAN’s position and rejected ASEAN’s authority over this issue. Hong stated that the South China Sea issues are not issues between China and ASEAN. Instead, China has been directly working with the involved countries to resolve conflicts through bilateral negotiations. Hong called the Summit Statement an example of “a few countries’ taking the entire ASEAN hostage.”

Source: China News, April 28, 2015
http://www.chinanews.com/gn/2015/04-28/7240637.shtml

Briefings | | |   Geo-Strategic Trend

Qiushi Theory on Ways to Strengthen Party Propaganda Work in Colleges and Universities

Qiushi Theory published an article on how to improve the Party’s propaganda work in colleges and universities. The article stated that strengthening ideology work in colleges and universities is a strategic project. It identified the following four areas as the key focus:

1) Strengthening the colleges and universities’ sense of responsibility for carrying out propaganda work. The colleges and universities should provide proper education and guidance to the students. It should become a solid foundation to spread the theory of socialism with Chinese characteristics. Colleges and universities should also be on guard against those that attack the Party and the system or spread distorted and irresponsible theories.

2) Improving the power of inspiration. Propaganda work must ensure that the students can benefit mentally and spiritually. Therefore, it should focus on solving the practical issues the students face and come up with plans to work with students who have different needs and are from different backgrounds.

3) Expanding the coverage of propaganda work. The propaganda network should facilitate the messages being heard through new media such as micro blogs, videos, and cell phones and on bulletin boards throughout the campus.

4) Building a strong energy field to attract students. Colleges and universities should launch different campus activities in order to create a positive environment to attract students. Meanwhile the faculty and staff should improve themselves and act as role models for the students.

Source: Qiushi Theory, April 29, 2015
http://www.qstheory.cn/zhuanqu/zywz/2015-04/29/c_1115123793.htm

Briefings | | |   Government/Politics

China Review News on Recommendations for the Future Development of China’s Think Tanks

China Review News carried an article addressing the issue of the growing interest in developing think tanks in China. The article was based on an interview that China Economic Times conducted of Professor Xue Lan, Dean of the School of Public Policy and Management at Tsinghua University. Xue addressed the current issues facing university think tanks. He made recommendations for the development of different types of think tanks in China and shared his view on what is needed to ensure that these think tanks remain independent. The following are Xue’s recommendations on the future development of government, university, and private think tanks.

Those policy research agencies working within the government rely on limited funding from the government. They have to find outside consulting projects to offset the shortfall in funding. Xue recommended that some of them should become policy research departments within the government. Some can gradually become independent, but the government should provide limited financial assistance before they become independent.

Those university think tanks that are public policy research firms can be transformed into first class think tanks. They can follow a model that is similar to those in foreign countries. They need to reconsider their relationship with the university, improve their research capabilities, and try to acquire donations from the public.

For private think thanks, since they have already gained years of experience, Xue recommended that the government provide tax or other incentives to help them grow to be the main driving force in the area of think tanks.

Source: China Review News Agency, April 18, 2015
http://hk.crntt.com/doc/1037/0/8/5/103708574.html?coluid=151&kindid=11515&docid=103708574&mdate=0418112317

Briefings | | |   Government/Politics

People’s Daily Opinion Article: Why the West Keeps Misinterpreting China

People’s Daily carried an opinion article about why the West, headed by the United States, keeps misinterpreting China. The article mentioned that the China Collapse theory has recently surfaced. The theory is not new, as all kinds of theories about China have been expressed. The article then focused on analyzing why the West keeps misinterpreting China. It mentioned three reasons.

The first is the orientation of Western research. The article stated that the U.S., as the base for the worldwide study of China, places the main focus of its research on China studies on China’s negative side, including rights movements; human and ethnic rights; conflicts in Xinjiang, Tibet, and Taiwan; mass protests; and social conflicts. The article claimed that the U.S. does so because (these issues) make it easier for scholars to apply for research funding. Therefore China studies in the U.S. often lack a certain independence. At the same time, the media also portray China in a way that is not accurate.

The second is that the West has a cold war mentality. The article stated that China studies in the U.S. have not gone beyond the cold war mentality. The research topics are chosen in order to identify and create internal conflicts in other countries. This then enables the U.S. to find an excuse to interfere.

The third is an inability to predict future development. The article said that there have been many incorrect predictions about China. The U.S. applies its own standard to judge and lead China, which has resulted in its being both disappointed and frustrated.

Source: People’s Daily, April 29, 2015
http://opinion.people.com.cn/n/2015/0429/c1003-26920774.html

Briefings | | |   US-China Relations

Xinhua: Is the U.S.’s Perverse Eavesdropping Addiction Curable?

Xinhua published a commentary regarding the surveillance wiretapping that U.S. intelligence agencies have been conducting. A report that Snowden’s exposed document revealed that the United States and New Zealand intelligence agencies have cooperated in monitoring the Chinese Consulate General’s diplomatic communications in Auckland is what triggered the commentary. Below is an excerpt from the publication: 

“U.S. intelligence agencies have become addicted to and pervasive in engaging in wiretaps; it does not matter what regions and venues are involved. The latest disclosure has only added another footnote to the world’s largest hacking empire’s hidden secret.” “Snowden’s exposed evidence proves that China is one of the main targets of U.S. illegal wiretapping and eavesdropping; it covers national government leaders, research institutions, universities, and enterprises.” 

“The reason that America is so interested and so unscrupulous in ‘wiretapping’ China is simply to steal intelligence and master all that it can about China’s trends. The reason for the ‘eavesdropping addiction,’ is that the U.S. still hopes to ‘safeguard national security.’ It is to keep America’s leading position in the field of global diplomacy, the economy, science, and technology, and always be aware of those areas in which China is making rapid progress. ‘It is because of fear that China will surpass the U.S. to become the world’s superpower.’" “What is more ridiculous is that the United States, for many years, has been crying ‘stop thief’ [as a thief], and has been using ‘Chinese spies and hacking attacks’ as a continual excuse to put pressure on China. In fact, the United States is the perverse example of ‘a wiretapping addict’ and ‘the hacking empire.’" 
“Overseas, the United States’ intelligence-gathering behavior has repeatedly crossed the bottom line of what can be tolerated. In the United States, monitoring has sparked controversy over violations of citizens’ privacy. However, the U.S. authorities do not seem to intend to stop. After the 2013 wiretapping scandal, U.S. President Barack Obama refused to apologize. Instead, he argued that the American government has maintained a good balance in safeguarding national security and the protection of citizens’ privacy.” 
“Thus, although the United States has lost the moral high ground, it still insists on talking with high-sounding rhetoric. The U.S. has neither given a reasonable ‘antidote’ to hacking, eavesdropping, and surveillance; nor does it intend to take the initiative to cure its ‘eavesdropping addiction.’" 

Source: Xinhua, April 20, 2015 
http://news.xinhuanet.com/world/2015-04/20/c_1115031026.htm

Briefings | | |   US-China Relations

China Tightens Internet Censorship by Interviewing Internet Companies

On April 28, 2015, the China National Internet Information Office issued the “Working Regulations on Interviewing Internet News Information Services,” which will be effective on June 1, 2015.

“Interviewing” refers to State and local Internet information offices meeting with Internet companies to issue warnings, point out problems, and order corrections. 
Ten circumstances may warrant an "interview" of the head or editor-in-chief of an Internet company. Examples include: if the company fails in timely handling of complaints from citizens; rakes in illegitimate gains through editing, publishing, reprinting, or deleting news and information; violates domain name regulations; or fails in the timely handling of illegal information or timely implementation of monitoring measures. 
The interview records will be included in the annual inspection records. Failure to comply with a request for corrections made during the interview may lead to a closedown of the business, revocation of the business license, and heavy fines. 
Source: Xinhua, April 28, 2015 
http://news.xinhuanet.com/politics/2015-04/28/c_127742441.htm
Briefings | | |   Government/Politics