Skip to content

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

Read More ...

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

Read More ...

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

Read More ...

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

Read More ...

Xinhua: The Report on the Work of the Government Included Local Deficit Information

Xinhua published an article stating that, for the first time, when Li Keqiang, Premier of the State Council, delivered the “Report on the Work of the Government,” the information included the financial deficits of local governments. The article said that, in the past, local deficits were consolidated and published at the central government level. According to the article, from the 2014 financial reports that a number of local governments released, the growth rate of the fiscal revenue in Beijing, Zhejiang, and Inner-Mongolia has dropped below 10 percent. Meanwhile, for the first time, the new budget act launched on January 1, 2015, has allowed the local governments to issue their own municipal bonds. According to the article, “The new budget act provided legal protection for local government debt management. … It will help to ensure the flow of the funding chain while easing the pressure of local debts.” 

Source: Xinhua, March 8, 2015
http://news.xinhuanet.com/politics/2015lh/2015-03/08/c_1114561978.htm

Briefings | | |   Government/Politics

Ministry of Finance: In 2014, Chinese Citizen Overseas Spending Exceeded 10 Trillion Yuan

During the Third Session of the National People’s Congress, Guangming Daily interviewed Gao Hucheng, China’s Commerce Minister. Gao disclosed that the number of overseas Chinese tourists has exceeded 100 million. In 2014, they spent over 10 trillion yuan (US$1.6 trillion) on overseas consumption. Gao attributes the growth in overseas consumption to higher domestic tariffs, higher distribution costs, and foreign commodities’ pricing strategy.

Source: Guangming Daily, March 7, 2015
http://economy.gmw.cn/2015-03/07/content_15027237.htm

Briefings | | |   Economy/Resources

Xinhua: Chinese Students Studying in the United States Are More Confident in China’s System

China’s state-run media published a report to praise the Chinese [Communist] system by quoting a Japanese media Diamond Weekly’s article, “The Reason for the Increase in the Patriotism of the Chinese Students Studying in the United States.” Below are excerpts translated from the Chinese report. 

“Twenty years ago, Chinese students in the United States were obsessive about the system and values of the United States, including its liberalism, but now times have changed. More recently, with China’s economic development over the years, Chinese students are becoming more confident in China’s national system and development model.” 
“Overall, the Chinese students in the United States approve of the freedom, democracy, and the rule of law in the Unites States, as well as the promotion of academic freedom and freedom of speech on the university campuses. Surprisingly, though, no one suggested that China should be like the United States and pursue freedom and democracy. At least they think that the current system is the most suitable [system] for China’s national situation and the most beneficial model for China’s development; adhering to the Communist Party governing system is the basis for China’s numerous endeavors.” 
“In recent times, more and more Chinese returning to China from the United States have expressed stronger ‘patriotism’ [toward China].” 

Source: Xinhua, February 25, 2015 
http://news.xinhuanet.com/world/2015-02/25/c_127516016.htm

Briefings | | |   US-China Relations

Former Auditing Official: Overseas Assets of State-Owned Enterprises Are Not Audited

Dong Dasheng, Former deputy auditor general of the National Audit Office, stated that China has not audited the overseas assets of the centrally administered State-owned enterprises (SOEs). Those assets amount to over 4 trillion yuan (US$639.6 billion). 

According to the State-owned Assets Supervision and Administration Commission, as of the end of 2013, the value of the assets that over 110 centrally administered SOEs owned totaled 35 trillion yuan (US$5.59 trillion), 12.5 percent (around 4.3 trillion yuan) of which was located overseas. 
According to Dong, "In the last years, the unwritten practice has been that the National Audit Office only audited 57 of the 118 central State-owned enterprises for the economic responsibility of leading cadres. It was left to other departments to organize or hire accounting firms to conduct audits of the rest of the SOEs. The National Audit Office has not audited the subsidiaries of the central SOEs. Basically there has been no audit of the increasingly large overseas investments of the central SOEs, leaving a large number of blank audit spots among the SOEs.” 
Dong recommended that auditors be co-located at these central SOEs. 
Source: China Economic Net, March 3, 2015 http://big5.ce.cn/gate/big5/wap.ce.cn/szsh/201503/03/t20150303_4706218.html

Briefings | | |   Economy/Resources

Qiushi: The Need to Maintain Information Sovereignty

Quishi published a commentary on the U.S. response to China’s proposed anti-terrorism law. The article stated that the law is to meet the needs of anti-terrorism work in China and was drafted based on the legislature and on the practice of other countries. It is a major step towards the rule of law. “However, some foreigners do not seem to understand China’s development of its anti-terrorism law. They particularly disagree with the part related to information security.”

“In order to maintain their own information security and related businesses, [the U.S.] asks its companies” to comply with the requirements of its national laws, but the U.S. expects that its companies not respect China’s information security within China. The United States is probably still using last century’s calendar. As we comprehensively promote the rule of law at the beginning of the year, we need to maintain China’s information sovereignty.” 
Source: Qiushi, March 5, 2015 
http://www.qstheory.cn/freely/2015-03/05/c_1114527416.htm
Briefings | | |   Government/Politics

Chinese Official Acknowledges the Economic Data Fraud

At a session of the recent Chinese People Consultative Conference in Beijing, Dong Dasheng, former Deputy Auditor General of the National Audit Office, talked about serious economic data fraud. Dong quoted a local official who said, "In the past few years the numbers were made too high. If the number is lowered (to match the reality) at once, it will (look like) a fall off the cliff. We have to digest the numbers over the years."
The issue of Chinese economic data fraud has been a widespread concern. This is the first time a former Chinese official has publicly acknowledged the problem.
As economic growth has been the main measure of performance evaluation of local governments, the GDP growth rate fraud is a very common problem. According to the Anbang Insurance Group, local data fraud includes not only foreign investment, but many areas such as GDP data, tax revenue, and investment. For example, tax revenues in many local governments saw a serious decline in 2014 and some places even had negative growth. In order for the numbers to look good, (local officials) would make adjustments in statistical definitions and the basis of comparison. Some simply cooked the numbers.
Source: BBC Chinese, March 4, 2015
http://www.bbc.co.uk/zhongwen/simp/china/2015/03/150304_cn_economic_data 
Briefings | | |   Economy/Resources

Xinhua: Increasing the Defense Budget to Support Achieving the Goal of Having a Strong Army

On March 4, a Xinhua reporter interviewed Major General Chen Zhou, a delegate to the National People’s Congress (NPC) and a researcher at the Academy of Military Science. In the interview, Chen stated that "strong material support is indispensable in achieving the Communist Party’s goal of having a strong army in the new situation.” 

Chen also asked, "How much are the needs for national security and how much will our defense spending be? Wherever our national interests extend, that is where our defense investment will follow. This is the principle that investment in national defense must follow." 
According to the Second Session of the NPC Meeting spokeswoman, Fu Ying, the draft budget proposal for 2015 indicated there was an increase of about 10 percent over the previous year. 

Source: Xinhua, March 4, 2015 
http://news.xinhuanet.com/politics/2015lh/2015-03/04/c_1114523378.htm

Briefings | | |   Defense/Military

Study Times: How Overseas Think Tanks Study China

Study Times published an article on how Western think tanks study China issues and what China should do about it. 

The article stated that first, those in the U.S. lead the Western think tanks in studying the China topics that they select. These topics are very focused, pragmatic, and forward-looking. For example, the U.S. think thanks study China’s rise, the return of the U.S. to Asia, China’s energy strategy, the North Korean nuclear issue, the impact of the U.S.-Iran relationship on China, and the China-India relationship. Second, Western think tanks have high quality researchers and research products due to the revolving door where researchers move among government, think tanks, and academia. Third, Western think tanks tend to be very influential in many ways. 
The article recommended that China should attach great importance to timely tracking and analyzing the progress of the overseas think tanks’ studies of China; proactively participate in the China study programs of these think tanks, and actively promote exchanges and cooperation between Chinese think tanks and international think tanks. 
Source: Study Times, March 2, 2015 
http://www.studytimes.cn/shtml/xxsb/20150302/9526.shtml
Briefings | | |   Government/Politics