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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 News: Investments from Key Foreign Investors Dropped Significantly

China News recently reported that the Chinese Ministry of Commerce just released the official 2014 report on foreign investments. A very important pattern showed that major traditional foreign investors, namely Japan, the United States, the European Union and ASEAN (the Association of Southeast Asian Nations, which has 10 member countries), demonstrated a significant decline in their investments in China. In terms of year-over-year decline rates, Japan’s was 38.8 percent, the U.S. was 20.6 percent, the EU was 5.3 percent, and ASEAN was 23.8 percent. Also in the same report, the manufacturing industry sector saw a 12.3 percent foreign investment decline. In the meantime, investments from South Korea and Britain had an increase. The Middle Region of China had the highest increase in absorbing investments (7.5 percent).
Source: China News, January 15, 2015
http://finance.chinanews.com/cj/2015/01-15/6973665.shtml
Briefings | | |   Economy/Resources

BBC Chinese: Foreign Tourists to China Are on the Decline

BBC Chinese recently reported that, according to the 2014 China Tourism Global Public Opinion Research, fewer and fewer foreign tourists are visiting China. The Research report was released at the Annual China Tourism Industry Development Conference held on January 13. China Tourism News and the Chinese Academy of Social Sciences jointly conducted the research. The study surveyed 23,000 people in 23 countries that covered 90 percent of the Chinese tourist’ market. The research identified a declining national image as the number one reason to have impacted tourist’s decision making. Based on the survey, the Chinese national image was significantly damaged by heavy pollution, the wide gap between rich and poor, corruption, and poor public safety. The research showed a sharp decline in the number of tourists from nearby countries such as Japan, Thailand, Indonesia, and Malaysia – they all saw a decline of seven percent year-over-year. 
Source: BBC Chinese, January 13, 2015
http://www.bbc.co.uk/zhongwen/simp/china/2015/01/150113_china_inbound_tourists
Briefings | | |   Economy/Resources

Swedish University to Close Its Confucius Institute

Well-known Chinese news site Sina recently reported that Stockholm University announced that it will soon close its Confucius Institute. This Confucius Institute was established in 2005 and was the first one to be established in Europe. According to Stockholm University’s website, the Confucius Institute project is “unnecessary.” The University’s Vice Chancellor suggested that it is “problematic” if an organization in a university is funded by a foreign government. A large number of U.S. professors consider that this type of arrangement interferes with academic freedom. Fox News also traced some of the publicly available records that showed the Chinese government paid for numerous travel and lodging expenses for some U.S. university decision makers so as to influence the negotiations. The same evidence was found in the founding of the Confucius Institutes in Northern Europe. Some Chinese experts expressed the opinion that these anti-China opinions are just biased Western views. However the Stockholm University Confucius Institute is the first closure of a Confucius Institute in Europe, which is a warning sign.
Source: Sina, January 12, 2015
http://news.sina.com.cn/c/2015-01-12/052131387284.shtml
Briefings | | |   Geo-Strategic Trend

Chinese Think Tank Releases Report on the Security of China’s Perimeter

On January 15, 2015, in Beijing, China’s major think tank issued "The (2015) Assessment Report on China Perimeter Security Situation — ‘One Belt and One Road (OBAOR)’ and the Perimeter Security Strategy." ["One Belt and One Road" is the short form for "silk road economic belt" and "the 21th century maritime silk road."] The report said that China’s ability and will to lead and shape its perimeter have significantly increased. China’s grand strategy for its perimeter security will soon be ready— implementing a dual policy (the economic strategy of advancing OBAOR and the security strategy of controlling maritime issues) as China’s core strategy. 

The Center for Regional Security Studies of the Chinese Academy of Social Sciences (CASS), the Institute of Asia-Pacific and Global Strategy of CASS, and the Social Sciences Documentation Publishing House jointly issued the report. 
The report summarized a number of the characteristics of the significant relations between major powers that, in 2014, affected the security of China’s perimeter. First, the competitive side of Sino-U.S. relations became more prominent. Second, Sino-Japanese relations continued in the "Ice Age." The structural contradictions will be difficult to solve in the short-term. Third, Russia was forced to turn to the Asian Pacific, accelerating its strategic coordination and cooperation with China. Fourth, India implemented the two-track policy of economic cooperation and strategic balance with China. Cooperation between China and India is stable but limited in scope. 
The report noted that "One Belt and One Road," as China’s grand foreign strategy, has graduated from the proposal stage to the action stage. The report expressed the belief that 2015 will be critical to the advancement of the "One Belt and One Road" strategy. 

In 2015, China’s perimeter security situation is facing at least three major challenges: First is the U.S.-Japan alliance’s strategic squeeze on China’s rise; second is the control of maritime safety and the development of a new maritime order; third is the promotion of the "One Belt and One Road" strategy and dealing with relevant external pressures. 

Source: Xinhua, January 15, 2014 
http://news.xinhuanet.com/politics/2015-01/15/c_1114007891.htm

Briefings | | |   Government/Politics

Xi Jinping: The Nuclear Industry Is a Cornerstone of China’s National Security

When Xi Jinping spoke at the commemoration of the 60th anniversary of China’s nuclear industry, he told his audience, “The nuclear industry is a strategic high tech industry and an important cornerstone of [China’s] national security.” He further stated that China must adhere to safe and innovative development and to the use of nuclear energy for peace; it must enhance the core competitiveness of the nuclear industry and write a new chapter of glory for the nuclear industry. 

Premier Li Keqiang expressed that China should carry forward the traditional, focus on the frontier, enhance the competitive advantages of the nuclear industry, promote nuclear power equipment to "go out," ensure nuclear safety, and continue to build China into a power with a strong nuclear industry. 
Source: Xinhua, January 15, 2015 
http://news.xinhuanet.com/politics/2015-01/15/c_1114011173.htm
Briefings | | |   Economy/Resources

Li Shenming: The International Financial Crisis Harbors the Revival of Socialism

In an article published in the January 2015 issue of Red Flag Manuscript (which Qiushi republished), Li Shenming, a member of 12th National People’s Congress Standing Committee and former Vice President of the Chinese Academy of Social Sciences, stated that the international financial crisis harbors the revival of socialism and that socialism is the inevitable result of human development. 

At the beginning of the article, the author cited the theory from Marx and Engels’ "Communist Manifesto," which stated that what the bourgeoisie first produces is its own grave. The author, using that logic, concluded that, in this historical process, the deepening of the international financial crisis will harbor the revival of its direct opposite, namely, socialism. 
The author tried to support his conclusion with the following statement: "The international financial crisis is a typical economic crisis of the global production, with a relative surplus and a relative lack of consumer demand. It is the crisis of the capitalist economy, its system, and its values." "The current international financial crisis, which has not bottomed out yet, cannot be resolved in a short period of time." "Technological revolution cannot save capitalism. On the contrary, it worsens the fundamental problems of capitalism." 

The author continued, "At present, there are all kinds of signs indicating that, in a corner of our planet, some people are planning to continue to subvert the world and even disintegrate one or two specific large countries. The plan is to use soft power, that is, ‘color revolution’ as the pioneer and the main force, backed by military hard power. When necessary, they will not even hesitate to launch large unjust wars [to accomplish their purpose]. Based on historical experience, it can be determined that the state that plans the war will not be the first to get involved in the war. Instead, it will do everything possible to provoke other countries to fight each other, wait until others have exhausted their national power, and then harvest the final victory. The hard and soft power plan will be implemented sequentially to divide and conquer the several specific large countries and finally to achieve the goal of still dominating the globe." 

The author claimed that "Lenin’s judgment of our times is not obsolete. Imperialism is war." He warned that [China] needs to guard against the U.S.-led Western world, which might use its hard power under certain conditions in order to eliminate the crisis. At the same time, [China] should be even more vigilant of the [U.S.] using "color revolution" and other soft approaches in the form of finance, ideology, and "street politics." 

 Source: Qiushi, January 8, 2015 
http://www.qstheory.cn/dukan/hqwg/2015-01/08/c_1113921889.htm

Briefings | | |   Government/Politics

Real Name Registration to be Implemented for Chinese Microblogging

China’s State Internet Information Office (SIIO) held a press conference on January 13, 2015, announcing that the office will comprehensively promote the management of real identities of Internet users. The principle will be "real name registration at the back end, voluntary registration at front end." Microblogging sites such as weibo (微博) and tieba (贴吧) are all subject to enforcement.
SIIO also announced the closure of 24 websites, 9 channels (columns), and 17 microblogging accounts, with charges that they faked government agencies or the media to publish false information and/or release illegal information involving gambling and fraud. In fact, rumors about real name registration on the Internet have been circulating for a long time. In 2014, SIIO issued "Interim Provisions on the Management of Instant Communication Tools and Public Information Services. The Provisions demanded that service providers of instant communication tools follow the principle of "real name back end and voluntary front end registration," requiring users to register their accounts after verification of their real identity information. At that time, microblogging was not subject to the regulation as it belongs to social networking media and is not one of the instant communication tools. However, some Internet service providers, such as Sina Weibo (新浪微博), have tried to implement real name registration for Internet users.
Source: China News Service, January 14, 2015
http://finance.chinanews.com/it/2015/01-14/6965736.shtml
Briefings | | |   Information/Technology

2014 Statistics: Smog Days Increase 70 Percent in Beijing

The China Meteorological Administration recently issued its "China Climate Bulletin 2014." According to its report, the smog situation has worsened in China. Last year, there were 61 Smog days in the area of Beijing, Tianjin, and Hebei Province, a 70 percent increase over the 36 days in the previous year. On average, the whole nation has 17.9 smog days.

Source: Caixin Online, January 12, 2015
http://datanews.caixin.com/2015-01-12/100773475.html

Briefings | | |   Economy/Resources