Skip to content

Supreme People’s Court: Judicial Independence Not Allowed in China

China News reported that the Party leadership of China’s Supreme Court held a meeting on February 25 at which it stated that, in China, there shall be no Western style “judicial independence” or “separation of powers.” At the meeting the Party leadership called for confidence in the path, theory, and system of socialism with Chinese characteristics. “Firmly uphold the judicial system with Chinese characteristics; draw a clear line; stay away from Western style ‘judicial independence’ or ‘separation of powers’; resolutely resist the influence of erroneous Western thoughts and views; and, on major issues, make sure to be very clear minded, standing firm and with very clear banner to identify your stance.” 

Source: China News, February 25, 2015 
http://www.chinanews.com/fz/2015/02-25/7079142.shtml

People’s Daily: People’s Misunderstanding about Social Security Is Worrisome

On January 10, 2015, People’s Daily published an article titled, “Social Security Is Not a Panacea.” On January 23, 2015, People’s Daily republished the article on its website, people.cn. The article told the Chinese people not to rely on the government’s social security and to get prepared for their retirement with funds resulting from their own efforts. According to the article, 40 to over 50 percent of an average Chinese person’s income is contributed to social security. The rate of the contribution is rising every year. Some people decided not to contribute anything to social security because they cannot afford the high payment. To solve the problem of the increasing rate of the social security contribution, the article gave possible solutions, one of which is to require 100 million uninsured workers to participate in social security contributions.

In 2013, the income to China’s social security fund could not cover the expenditures in 19 provinces. The fund had a total of revenue shortfall of 170.2 billion yuan (US$27.19 billion). Many other provinces could maintain a normal income-expenditure fund cycle only with the help of the central government’s financial support. “As prices are so high, the 70 yuan per month basic social security retirement allowance can only be used as pocket money.” “With the year by year price increase, a couple of thousand yuan per month in corporate pension is very tight for a retirement life.” [Editor’s note: Milk costs between 10 and 16 yuan per liter; a 500g Loaf of fresh white bread costs between 7 and 15 yuan.] However, what worries the government even more is the Chinese people’s “misunderstanding,” that “Social Security Is a Panacea.” Giving North America and Europe as examples, the article said that enterprises and individual citizens should take the major responsibility for their own retirement funds.

Source: People’s Daily and people.cn, January 23, 2015
http://society.people.com.cn/n/2015/0123/c1008-26434809.html

A Follow-up Post on People’s Daily on Social Security Issues (Subsequently Removed)

“Who is raising whom?” [The government treats the people as a mother treats her child, but who is nurturing whom?] was a follow-up post questioning a People’s Daily article titled, “Social Security Is Not a Panacea.” It appeared in Baidu’s follow-up posting section, but the post is no longer available on Baidu. The writer of the follow-up post pointed out that social security should be the retirement funds that the contributors deserve to have after retirement. However, People’s Daily had described it as a charity fund that the government offered. Below are the 10 questions from the post.  

1)    People’s Daily said “63 percent" of Chinese residents believe that their retirement life should depend on the government. Only 9 percent of residents believe that they are responsible for their own retirement.” Question: Is the government the creator of wealth or do taxpayers provide the wealth?
2)    In China, around 37 million people enjoy a government pension without paying one cent toward social security; other people who have contributed to social security funds can only receive a 70 yuan basic social security paycheck each month. Who has raised money for whom?
3)    Can I withdraw my contributed money from the government social security funds and take full responsibility for my own retirement from now on?
4)    Chinese people who have paid retirement fund premiums accounted for 28 percent of the national income, three times higher than the same period in other countries. Why have such high premiums resulted in a huge loss? Who should take responsibility?
5)    Retired employees of the civil services and of government institutions enjoy 80 percent of China’s pension resources. Where in the world can government employees not need to pay social security but still enjoy pensions several times higher than those who have paid their social security fees?
6)    If you deposit your money in the bank, and you withdraw it when needed, then does that mean the money was raised by the bank?
7)    Why does the government compel people to join social security and force the people to pay? Why don’t the Chinese [who benefit] know that they should be “thankful”?
8)    Who has provided money for you, People’s Daily?
9)    “The one child policy is good; it is the government that will take care of you when you are old.” Who was it who made this solemn promise to all of the Chinese people?
10)    37 million retirees in China receive pensions several times higher than others but have never paid any retirement premium. Are they retired government officials or state enterprise employees, or ordinary people? Do the people raise the government? Or does the government raise the people?

Source: Baidu’s follow-up posting section, February of 2015
http://tieba.baidu.com/p/3552884419

Global Times: Chinese Housing Market Saw Record Decline in January

Global Times recently reported that, according to the numbers that the National Bureau of Statistics released, in January, the price of new houses suffered a year-over-year decline of 5.1 percent. It was the worst decline since the Bureau started tracking this index. The statistical scope covered 70 cities. Of those, 64 saw a decline in January. In the past several months, the Chinese housing market has been consistently on the decline, including in many mid-sized cities. More and more investors are moving their money into the stock market. Real estate and its related industries hold a one-quarter share of the Chinese economy. Analysts expect a continued trend of decline in this sector, especially given the situation that the already huge real estate inventory is still seeing growth.
Source: Global Times, February 17, 2015
http://finance.huanqiu.com/view/2015-02/5713304.html

China Is Considering Merging PetroChina and Sinopec

Well-known Chinese News Site Sina recently reported that the Chinese government is considering a merger between the top two largest state-owned oil companies – PetroChina and Sinopec. The goal is to establish a “champion” oil company that can practically challenge ExxonMobil and increase oil production efficiency in an era that’s suffering low oil prices. Unnamed Chinese officials said there are multiple options and there is no final decision or timetable yet. As the Chinese economy is slowing down, the Chinese government is planning significant reforms to major state-owned companies in order to improve their global competitiveness. Although the government has been opening up more and more industries (such as infrastructure, natural resources and banking) to private investment, President Xi Jinping stated last year that the state-owned companies are still “an important pillar of the nation’s economy.” Heavy competition among similar state-owned companies is identified as one of the main problems in developing healthy overseas markets. PetroChina has 550,000 employees globally, which is seven times the employee count of ExxonMobil. However its 2013 revenue was US$361 billion, which was much lower than ExxonMobil’s US$420 billion. 
Source: Sina, February 17, 2015
http://finance.sina.com.cn/stock/usstock/c/20150217/204821572981.shtml

BBC Chinese: Greece to Participate in China’s New Maritime Silk Road

BBC Chinese recently reported that, during the Eighteenth Chinese Naval Escort Fleet’s four-day visit to Greece, Greek Prime Minister Alexis Tsipras boarded a Chinese Naval warship to attend a Chinese New Year’s reception. Tsipras delivered a speech that suggested the visit and the joint naval exercise represented the start of a new era. He also said his government gave a high priority to supporting China’s investments in Greece and agreed that the country will participate in the New Maritime Silk Road plan. Tsipras emphasized that he expects Greece to become the primary entry point to Europe for Chinese goods. The New Maritime Silk Road plan was first announced by Chinese President Xi Jinping in the fall of 2013. 
Source: BBC Chinese, February 21, 2015
http://www.bbc.co.uk/zhongwen/simp/world/2015/02/150221_tsipras_greece_china_cooperation
http://www.bbc.co.uk/zhongwen/simp/world/2015/02/150219_greece_china_eu

China’s Coal Industry Is Facing a Tough Time

China Economy reported that 2014 was a bad year for China’s coal companies. China’s Coal Industry Association issued a release stating that, in the first 11 months of 2014, profits fell by 44.4 percent and losses increased by 61.6 percent when compared to same period in 2013; 70 percent of coal companies were in the red. China completed 3.52 billion tons of coal production, which was a 2.1 percent reduction from a year ago. It was the first decline since the year 2000. On the one hand, coal consumption continues to decline. On the other, the companies have excess capacity and operational difficulties. According to China Economy, this will be the new norm for the future of the coal industry. 

Source: China Economy, February 21, 2015 http://www.ce.cn/cysc/ny/gdxw/201502/21/t20150221_4630603.shtml

Shenzhen Becomes World’s First Friendship City with Berne of Switzerland

As Switzerland as a nation strengthens its ties with China, China’s Shenzhen has become the first Friendship City for its canton of Berne.
The free trade treaty between China and Switzerland took effect last summer. In late January this year, Chinese premier Li Keqiang visited Switzerland. Then in early February, the Swiss Treasury Minister reciprocated the visit in order to promote bilateral cooperation for the internationalization of the Chinese yuan. After two years of communication and preparation, the Swiss canton of Berne formally became a Friendship City with the city of Shenzhen, the most important industrial and economic city in southern China. Since it is the first Friendship City for Berne globally, the story was widely covered in Switzerland. Berne is the second most populous canton in the country. Its industrial structure bears high similarities with Shenzhen. Products include precision instruments, watches and clocks, medical and life sciences, finance, and technology.
Source: Radio Free Asia, February 20, 2015
http://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/gr-02202015103128.html