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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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In 2014, over 150 Senior Executives at State-owned Enterprises Faced Corruption Charges

According to Legal Daily, from January 1 to December 15, 2014, a total of over 150 senior executives from State-owned Enterprises (SOEs) have been investigated for or charged with conducting criminal activities. This represents a sharp increase compared to less than 100 in previous years. 

January and February of 2014 each saw two fallen executives, the lowest number for the year. The numbers in June, August, and September hit the peak at 22, 39, and 22 respectively. The hardest hit were those SOEs that the central government owns, such as China Resources Group and Sinopec. The energy and financial sectors each had a total of 11 senior executives under investigation, including Postal Savings Bank of China, Beijing Rural Commercial Bank, the Bank of Inner Mongolia, and China Guangfa Bank. According to a state survey, 90 percent of the officials who fled overseas are from State-owned companies or financial companies. 
Source: Legal Daily reprinted by Xinhua, December 20, 2014 
http://news.xinhuanet.com/politics/2014-12/20/c_1113717267.htm
Briefings | | |   Government/Politics

China Cancer Map Shows the Geographic Distribution of Cancer Cases

Life Times, which is under People’s Daily, published a “China Cancer Map” showing the geographic distribution of the cancer cases in China. 

Including all cities in China, the forms of cancer with the highest occurrences are thyroid cancer and breast cancer. Lung cancer ranks the highest in the three provinces in northeast China and Yunnan provinces. Jiangsu Province has the highest number of cases of gastric cancer, colorectal cancer, and liver cancer. 
The map shows that liver cancer cases occur mostly in the coastal provinces of Zhejiang, Guangxi, and Jiangsu, while the provinces of Liaoning, Shandong, Gansu, Jiangsu, and Fujian tend to have more colorectal cancer cases. Gynecological cancer cases appear to be concentrated in Inner Mongolia, and the provinces of Shanxi, Shaanxi, Hubei, Hunan and Jiangxi. 
Sources: Life Times reprinted by Huanqiu, December 17, 2014 
http://mt.huanqiu.com/Html/ahtml/china/2014-12-17/5251565.html
Briefings | | |   Economy/Resources

Li Keqiang: China Willing to Provide Financial Support to SCO Countries

On the afternoon of December 15, Chinese Premier Li Keqiang attended the 13th meeting of the Summit of the Shanghai Cooperation Organization (SCO) member countries in Astana, the capital of Kazakhstan. 

According to Russian media, Li announced at the meeting that China is willing to provide financial support to SCO countries to help them overcome the economic crisis.  The media also reported that Li further stated that China is willing to take such measures in bilateral cooperation with Kazakhstan and other SCO countries or partners, and that this effort will help these countries to deal successfully with the economic downturn and to modernize production. 
The SCO was founded in Shanghai in 2001. The SCO members are Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Iran, Afghanistan, Mongolia, Pakistan and India have observer status. Dialogue partners include Belarus, Sri Lanka and Turkey. 
Source: China Enterprises Investment Association, December 16, 
2014 http://www.ceia.cn/show.php?contentid=47887

Briefings | | |   Geo-Strategic Trend

WANG Yiwei: China and U.S. Have Different Understanding of the New Model of Major-Country Relations

WANG Yiwei, Director of the International Affairs Institute at Renmin University of China, recently wrote an article that was published on Huanqiu (Global Times, a division of People’s Daily). In the article he discussed the differences between China and the United States as to how they each understand the new model of major-country relations. Below is an excerpt from the article: 

"From the perspective of historical experience and mankind’s responsibility, Sino-U.S. relations, unlike any other great power relations, may not pursue the best, but must prevent the worst. This is impossible without the new model of major-country relations. However, in the establishment of new relations between these big powers, China and the U.S. hold six different understandings of the new model of major-country relations.” 
"1. The Chinese side stresses the concept of "no conflict and no confrontation." The U.S. cannot promise to have no conflicts; at best it promises to avoid unnecessary conflicts and confrontations. Even making such a commitment is too difficult; it fears getting stuck and losing the trust of its allies." 
"2. How the nature of Sino-US relations is established will determine the direction of international politics in the 21st century. The U.S. is inclined to a "new type of relationship" that is more focused on new ways to continue the policy of engagement with China while maintaining the U.S. leadership position. The U.S. is worried that China’s emphasis on "mutual respect" may make the U.S. unable to interfere with China’s internal affairs and is contrary to the American values diplomacy. China, in asking for "respect," is hoping that the U.S. will respect China’s core interests and gradually recognize China’s ‘big country’ status." 　　 
"3. The Chinese side has focused on shaping the nature of the new model of major-country relations between China and the U.S. with no conflict, no confrontation, and mutual respect so as to achieve a win-win effect, but the United States understands it as a kind of cooperation for cumulative effects. For example, if China cooperates with the United States on the Issues of North Korea, Iranian nuclear power, as well as Afghanistan and the ‘Islamic State,’ it will enhance the confidence of the United States to establish the new relations between big powers. Meanwhile, the United States believes that since China publicly rejected ‘Sino-U.S. joint rule’ (G2) in the past and now China uses "win-win cooperation" to lure the United States, China’s purpose is to allow the United States to let down its guard and then catch up and surpass the U.S. without being noticed." 
"4. The U.S. is worried that the new relations are merely China’s transitional arrangement for the eventual replacement of the U.S. The intention is to shake the U.S. leadership. China has emphasized that the new relationship is to reduce strategic suspicion of each other, create strategic consensus, and gather strategic actions." 
"5. The United States believes that the task of the new relations is to manage the bilateral relations, while China believes the task of the new relations is to become a cornerstone to develop the world order. China believes that the Sino-U.S. relationship is the world’s most important bilateral relationship; the U.S. acknowledges that the U.S.-China relationship is only one of the world’s most important bilateral relationships. Compared to China, the United States is becoming more and more short-sighted and sensitive."
"6. The United States is very suspicious of the future of the new relations model and believes that whether such a model can be established does not really matter. The Chinese side fears that if the new China-U.S. relations cannot be established, it is likely to fall into another political tragedy among the great powers in history." 

Source: People’s Daily, November 6, 2014 
 http://opinion.people.com.cn/n/2014/1106/c1003-25985623.html

Briefings | | |   US-China Relations

Sino-Russia Trade Suffers from Ruble Depreciation

On December 17, 2014, China National Radio reported that the Russian Ruble was the worst performing currency with a 49 percent depreciation rate (against the dollar) this year and is damaging Sino-Russian trade. 

One issue is that, along the Chinese border at Heihe, Heilongjiang Province, the number of Russian tourists has significantly declined since the beginning of November. Another is that, according to Tian Chunsheng, the Secretary-General of the China and Russia Eastern Europe and Central Asia Economic Institute, Russian businesses have now resorted to defaulting on their payments for imports from China, thus damaging small and medium exporters in China. 
China National Radio noted that the China-Russia currency swap agreement signed back in October will be tantamount to China “giving money to Russia,” as the Russian Ruble continues to depreciate. It is because the Sino-U.S. agreement allows exchanges of currency based on a fixed exchange rate. 

Source: China National Radio, December 17, 2014 http://finance.cnr.cn/txcj/20141217/t20141217_517131147.shtml

Briefings | | |   Economy/Resources

PLA Daily: Anti-corruption Is a Life and Death Battle That We Cannot Afford to Lose

On December 17, the Chinese military flagship newspaper People’s Liberation Army Daily (PLA Daily) carried a high profile opinion article titled, "Anti-corruption Is a Life and Death Battle That We Cannot Afford to Lose." Some of the wording was strong and direct. 
"About corruption, there are two camps of arguments that are worthy of attention. One is whether the continual strikes on corruption will actually cost the support of the public; the other is whether the anti-corruption campaign can really continue."
"These concerns, to some extent, exemplify the ‘stalemate between the corruption and anti-corruption forces." If misconceptions are not clarified in a timely manner, if people’s thinking is not further unified, and if their faith is not strengthened, it is bound to be difficult to completely eliminate the pernicious influence of Xu Caihou (former Vice Chair of the Central Military Commission, put under investigation and expelled from the Communist Party in June 2014) and carry out the fight against corruption to the end."
"There is no special area for corruption and no taboo against anti-corruption. As ‘big tigers’ like Zhou Yongkang (Zhou is a former member of the Politburo Standing Committee; on December 5, 2014, state media announced Zhou’s arrest to face criminal charges, as well as his expulsion from the Communist Party of China.) and Xu Caihou are removed, who else can remain as an exception? The central leadership of the Party and Chairman Xi will not tolerate any corruption; they will surely investigate and punish violations of law and discipline."
"The military is holding the barrel of the gun. It is a strong pillar of the ruling party. If the military engages a corrupt army, the barrel of the gun will turn to rust and the pillar will collapse. Then what would be there to guarantee the stability of the country and the people’s happiness and peace? History has repeatedly proven that as long as the military is absolutely loyal, absolutely pure, and absolutely reliable, the country will not fall into big trouble. There must not be any hiding place for the corrupt. This is the Party’s special political requirement for the army."
Source: PLA Daily, December 17, 2014
http://www.81.cn/jmywyl/2014-12/17/content_6272590.htm
Briefings | | |   Government/Politics

Xi Jinping: Strictly Governing the Party in All Areas

On December 16, 2014, Xinhua published an article on the new policies that Xi Jinping, the Chinese Communist Party General Sectary, has proposed: Building a moderately prosperous society in all areas; deepening reforms in all areas; promoting the rule of law in all areas; and strictly governing the Party in all areas. Among the four “in all areas,” the last one “strictly governing the Party in all areas” is the new policy.

The article explained the different sub-areas of “in all areas” in terms of “strictly governing the Party.” “These include the Party’s ideological development, organizational development, mode of work development, anti-corruption development, and institutional development. All levels of the Party’s organizations must follow the requirement of strict governance of the Party and management of team members, and must normalize and institutionalize “strictly governing the Party.”

Source: Xinhua, December 16, 2014
http://news.xinhuanet.com/politics/2014-12/16/c_1113661816.htm

Briefings | | |   Government/Politics

Huanqiu: As Everyone Knows, China Does Not Want Russia to Fall”

On December 17, 2014, Huanqiu (the Chinese edition of Global Times) published an editorial titled, “As Everyone Knows, China Does Not Want Russia to Fall.” After an analysis of Russia’s situation and economic difficulties, the article said that Russia is still far away from any real danger of collapse. However, what Russia has to deal with is not a short-lived super storm either. “Sino-Russian relations are generally regarded as one of the key conditions for protecting Russia against strategic risks.” “China does not want Russia to fall; the whole world is clear about (China’s) stand.” According to the Huanqiu editorial, China must be clear about several points when dealing with Russia.

First, the China-Russia strategic partnership is no longer built on ideology but on the national interests of both countries. A Russia that does not show its weakness to the U.S. and the West is important to China in terms of China’s national interests. China and Russia mutually need each other with a back to back strategic relationship.

Second, although China has the ability to provide assistance to Russia in key areas at critical times, China may only do so upon Moscow’s request so as to avoid Russia’s misunderstanding of China’s intentions. China needs to have a high respect for Russia and to maintain Putin’s reputation in Russia. Third, it is only a hypothesis that Russia will be continuously getting closer to China because of its crisis. Many uncertainties exist.

Source: Huanqiu, December 17, 2014
http://opinion.huanqiu.com/editorial/2014-12/5248588.html

Briefings | | |   Geo-Strategic Trend