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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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People’s Daily: Volume of Railway Freight Declined as Did PMI

On March 26, People’s Daily reported that, according to the numbers that the National Development and Reform Commission (NDRC) released, the combined January and February railway freight volume saw a year-over-year decline of 9.1 percent. February is the 14th consecutive month that suffered a decline. Railway freight volume is one of the well-known indicators on which Chinese Premier Li Keqiang has focused. In February, another favorite indicator of his, total electricity consumption, also saw a 6.3 percent year-over-year decline. In addition, HSBC reported China’s February manufacturing sector PMI to be 49.2, far less than the expected number, a PMI of 50.5. PMI (Purchasing Managers Index) is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: People’s Daily, March 26, 2015
http://history.people.com.cn/peoplevision/n/2015/0326/c371452-26753376.html
Briefings | | |   Economy/Resources

Indonesian President: The Chinese Lines in South China Sea Have No Legal Basis

BBC Chinese recently reported on the comments that Indonesian President Joko Widodo of Indonesia made when the Japanese newspaper Yomiuri Shimbun interviewed him before his visit to Japan. During the interview, Widodo discussed the South China Sea "Kau Line." He thought that most of what the Chinese asked for in the South China Sea lacked any basis in international law. This was the first time, since he was elected last October, that President Widodo explained his position on the issue of the South China Sea. The South China Sea enjoys an annual commercial traffic valued at around US$5 trillion. Based on the “Kau Line," China claims sovereignty over 90 percent of the South China Sea. The government of the Republic of China had originally drawn that line before the Communists took power. However a number of countries in the region, such as Vietnam and the Philippines disagree. President Widodo expressed his willingness to be an “honest bridge builder” to mediate the resolution of this long-lasting regional conflict. China maintains that the core issue of the conflict is that “some countries are occupying islands illegally.”
Source: BBC Chinese, March 23, 2015
http://www.bbc.co.uk/zhongwen/simp/world/2015/03/150323_indonesian_china
Briefings | | |   Geo-Strategic Trend

CRN: No One Should Use the Internet to Interfere with Other Countries’ Internal Affairs

China Review News (CRN) reported, on March 30, 2015, about a high ranking official from the Ministry of Foreign Affairs who spoke at the 2015 Asian Boao Forum. The official was asked, “How have the Internet’s developments impacted the China-U.S. relationship?” In response, the official advised that all nations should cooperate in the world of the Internet and obey the UN Charter. At the same time, no one should seek to start Internet wars or to interfere with other countries’ internal affairs. He also suggested that the Internet needs a common set of rules that all nations should follow. In 2011, China and Russia submitted a draft for an international proposal; they refined that draft this year. The proposal called for the same sovereignty on the Internet as defined by the United Nations, for people’s basic Internet rights, and for a global framework for Internet governance.
Source: China Review News, March 30, 2015
http://bj.crntt.com/doc/1036/8/7/8/103687898.html?coluid=1&kindid=0&docid=103687898&mdate=0330004915
Briefings | | |   Information/Technology

Huanqiu: U.S. Freedom of Navigation Operation Was Peremptory and Dangerous

China News Service (CNS) carried an article that was originally published by Huanqiu. The article said that on March 25, the Pentagon made an announcement that the U.S. military conducted freedom of navigation operations last year challenging maritime claims by 19 countries. It was the largest number of countries challenged in more than a decade. The article quoted interviews of some legal and navy experts from China who called this freedom of navigation operation peremptory. The article said that such a freedom of navigation operation prevents other countries from challenging the U.S.’s authoritative rights on the sea. It demonstrates that the U.S. does not accept and acknowledge maritime (rights) defined by other countries. Huanqiu reported that the operation not only upset certain parties, but was also a threat to global security. 

Source: China News Service, March 27, 2015

http://www.chinanews.com/mil/2015/03-27/7163030.shtml 

Briefings | | |   US-China Relations

China Association for Quality Promotion Published Report on Product and Service Quality

Xinhua reported that the China Association for Quality Promotion published the results of an investigation into the quality of products and services. The investigation revealed that, among the eight industries that have the largest number of quality and credibility concerns, the automobile industry ranked at the top. The eight industries investigated included automotive, electronics, furniture, telecommunications, insurance, water filter, and eyeglasses. A total of 1,662 companies in ten cities and provinces were investigated.

The report showed that the service industry in China is still poorly structured. It lacks the proper measurement and standards for good quality service. For the auto industry alone, the common service issues included fake repair and warranty service records; the use of low quality parts instead of OEM (original equipment manufacturer) parts; and random labor rate increases. The report also disclosed that fake products are commonly found in shoes, clothing, baby products, and health nutritional personal care items. Other phenomenon that affect the customer’s buying experience include late shipment arrival, lack of trade security guarantees, stolen bank cards, and leaked personal information.

Source: Xinhua, March 29, 2015
http://news.xinhuanet.com/fortune/2015-03/29/c_127633229.htm

Briefings | | |   Information/Technology

Xinhua: College Party Secretary and Principals to Strengthen Party Political and Ideology Education

Xinhua reported that, recently, while attending training courses at the Party school in Beijing, the Party secretary and the principals from a number of universities held a forum. Liu Yunshan, a member of the Politburo Standing Committee, spoke at the forum. Liu emphasized that colleges and universities need to provide an education that follows “socialism with Chinese characteristics.” Colleges and universities should conduct work on political and ideology education among students and faculty members while further promoting the development of the work of the Party.

Source: Xinhua, March 28, 2015
http://news.xinhuanet.com/politics/2015-03/28/c_1114795079.htm

Briefings | | |   Government/Politics

Ministry of Finance: The Growth in Fiscal Revenue Slowed Down Sharply

According to a recent article in People’s Daily, China’s Ministry of Finance recently released statistics showing that, in the first two months of 2015, the growth in China’s fiscal revenue slowed down sharply, while expenditures increased. 

In the first two months of 2015, fiscal revenue grew 3.2 percent year on year, reaching 2.57 trillion yuan (approximately US$417.5 billion). Excluding the transfer of government funds, the growth rate was 1.7 percent. Revenue from taxation was 2.24 trillion yuan (US$360 billion), a 0.8 percent increase year on year. This is a historical low, said Bai Jingming, an official from the Ministry of Finance. 
Meanwhile, expenditures rose to 1.89 trillion yuan (US$300 billion), an increase of 10.5 percent year on year, with a 52 percent increase for transportation, an increase of 21.2 percent for housing, 15.6 percent for social security and employment, and 14.5 percent for education. The recent Budget Report of the Ministry of Finance that the third session of the twelve National People’s Congress approved set the target for fiscal revenue to grow at 7.3 percent in 2015. “Based on the current situation, it will be very difficult to achieve the annual revenue growth target," said Bai Jingming. 
Source: People’s Daily, March 17, 2015 
http://cpc.people.com.cn/n/2015/0317/c83083-26704446.html
Briefings | | |   Economy/Resources

Expert: U.S. Has Expanded Its Cyberwar Battle Mode

In an interview with a reporter from China National Radio (CNR), Chinese military expert Li Wei said that the U.S. will use cyberwar deterrence as a new form of battle. He indicated that it would be difficult to break the U.S.’s cyber-hegemony in the short-term. Below is a translation of CNR‘s report: 

Recently, the chairman of the U.S. House of Representatives Homeland Security Committee, Mike McCall, stated that the Korean network paralysis that occurred last December was due to the retaliatory measures that the United States initiated. It is the first time that a U.S. lawmakers publicly acknowledged the U.S. attack on North Korea. Why did the U.S. lawmaker suddenly release this information? Is the U.S. cyber army really not conquerable? The reporter interviewed military expert Li Wei on these and related issues. 
As early as back in the 1990s, the U.S. proposed the concept of cyber warfare. The U.S. has been developing its cyber army even more in recent years and has actively built up its military activity in cyber space under the banner of safeguarding national interests. Li Wei pointed out that, although the United States followed the previous framework of its military forces, the combat mode has undergone enormous changes. It has become a team of Internet experts in military uniform. 

The United States has often used Hackers as a reason to accuse other countries, but the U.S. Congressman has now acknowledged publicly, for the first time, that the U.S. attacked North Korea’s cyber network. Li Wei said that the U.S. lawmaker’s statement may herald that the United States will add to its cyber deterrence as a new deterrence in addition to its nuclear and conventional deterrence. 

Li Wei suggested that the United States is far ahead in Internet hardware and technology. Such hegemony is difficult to break in the short term. In the face of such a situation, other countries should develop their Internet core technology and, at the same time, use the U.N. and other international organizations to counterbalance the United States. If we allow the United States to stay dominant, the United States will always maintain its Internet hegemony. 

Source: China National Radio (CNR), March 19, 2015
http://military.cnr.cn/jmhd/gfzs/wgfgjq/20150319/t20150319_518053193_2.html
http://news.xinhuanet.com/mil/2015-03/21/c_127603693.htm

Briefings | | |   Defense/Military