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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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Beijing Held Its Third World Chinese Education Conference

Xinhua recently reported that, on December 7, 2014, the Chinese Affairs Office of the State Council and the China Overseas Exchange Association jointly held the Third World Chinese Education Conference in Beijing’s Great Hall. State Councilor Yang Jiechi attended the conference and met with more than 500 representatives of Chinese educational facilities from 50 countries and regions. [1] 

At the opening ceremony, the Overseas Chinese Affairs Office of the State Council gave awards to 1646 “outstanding overseas Chinese teachers” and 120 prominent contributors to overseas Chinese education. They also gave awards to 38 schools for being model schools. [1] 

According to a document issued by the Chinese Affairs Office of the State Council (to the Chinese Embassies and Consulates of different countries), the Chinese Embassies and Consulates in the respective countries must recommend those who receive the awards. A notice attached to the document listed conditions for receiving the awards. Among other conditions, the requirements included that the recommended awardees must agree to and support the “One China” policy and oppose “Taiwan Independence,” “Xinjiang Separation,” “Tibetan Independence,” “Falun Gong,” and the “Democracy Movement.” [2] 
Sources: 
[1] Xinhua, December 7, 2014 
http://news.xinhuanet.com/overseas/2014-12/07/c_127283884.htm 
[2] Information that Chinascope acquired from an internal source

Briefings | | |   Government/Politics

Reform: From Business Tax to Value Added Tax

Economic Information Daily reported that real estate and construction may implement a reform from a business tax to a value added tax. 

The State Council set forth the goal that the reform from the business tax to the value added tax should be completed by the end of the 12th five plan period, which is 2011 to 2015. With one year left, the value added tax may be put in place in real estate and construction starting as early as next March. It is anticipated that the tax rate will be 11 percent. Based on preliminary estimates, analysts predict that the reduction in taxes may reach 500 billion yuan. For most companies, implementation of the valued added tax means that accounting and taxation need to be handled by two separate departments, rather than the current practice of using one department. 
Source: Economic Information Daily reprinted by People’s Daily, December 8, 2014 http://politics.people.com.cn/n/2014/1208/c70731-26164819.html
Briefings | | |   Economy/Resources

Xinhua: Cyber Warfare Is Comparable to a Nuclear Strike

The military section of Xinhua published an article discussing the importance of cyber warfare in the future battlefield among countries. A partial translation follows: 

“Cyber warfare is a devastatingly destructive form of combat. It is related to the country’s safety and its survival. The enormous power of cyber warfare is similar to that of a nuclear strike. It can bring the entire network to a standstill, delivering a heavy blow to the central nervous system of the entire society.” 

“Military experts point out that cyberspace has risen to a level parallel to the sea, land, air, and space; it has become the ‘fifth field.’ The ability to control cyberspace has become an important part of a nation’s military power. Analysts have pointed out that, in the future, the ‘fifth field’ will become each country’s main battlefield.” 

“According to a knowledgeable expert, cyber warfare is like ‘Pandora’s box.’ One should treat a cyber war with the same vigilance as a nuclear war.” 

“Since 1991 when the U.S. used cyber warfare successfully in the Gulf War, the U.S. has never cooled down its enthusiasm for cyber warfare. From the time when the U.S. military developed the ‘Schutte’ system in order to achieve a high degree of integration of electronic warfare, cyber warfare, direct destruction, and many other means of attack, to the use of the ‘Stuxnet’ virus to sabotage Iran’s nuclear research program, the U.S. has held a ‘Cyber Storm’ exercise every two years, in order to test the U.S.’s network security and emergency response capabilities and to establish the world’s first ‘Network Warfare Command." The U.S. is moving farther and farther along on the road of cyber warfare preparations.” 
Source: Xinhua, December 9, 2014 
http://news.xinhuanet.com/mil/2014-12/09/c_127288009.htm

Briefings | | |   Defense/Military

People’s Daily Article Hints Death Penalty for Zhou Yongkang

On December 10, People’s Daily carried an article titled, "What Zhou Yongkang Did Is No Different from a ‘Traitor.’" The article mentioned a few names in the history of the Chinese Communist Party: two early leaders in the 1930’s during the civil war with the Nationalist Party and three high ranking military officials after 1949. All of the five ended in the death penalty. The Nationalists killed the early leaders; the three later officials received death sentences.
The article contrasts with a 2013 Xinhua article, months after Bo Xilai was ousted, "Chen Yun was against the death penalty for Jiang Qing: the inner Party struggle should not have bloodshed." This article hinted that there would be no death penalty for Bo. The December 10 People’s Daily article is widely regarded as hinting that Zhou will receive a "death sentence."
Source: People’s Daily reprinted on china.com.cn, December 10, 2014
http://www.china.com.cn/news/2014-12/10/content_34284242.htm
Briefings | | |   Government/Politics

Over 40 Percent of Listed Companies Are Found to Have Environmental Violations.

On December 9, the Beijing based Institute of Public and Environmental Affairs (IPE) and two other environmental organizations published a report that listed the publicly traded companies in China that had environmental violations. 

According to the IPE report, as of December 5, 2014, 1069 listed companies, which is over 40 percent of all listed companies, were in violation of environmental standards. For example, over 200 companies had instances of noncompliance with emission standards. 
The IPE statistics showed that the largest companies that pollute the environment are power plants, cement companies, non-ferrous metal smelting plants, steel mills, and chemical manufacturers. They account for between 83 to 93 percent of pollutant emissions. Of the 36 listed steel mills, 34 were in violation of environmental standards. Further, the 63 power plants, which account for 80 percent of the listed power plants, have been cited  for violations of environmental regulations a total of 738 times. 
Source: Institute of Public and Environmental Affairs, December 9, 2014 http://www.ipe.org.cn/about/notice_de_1.aspx?id=11832

Briefings | | |   Economy/Resources

Young Chinese Scholars on Sino-U.S. Relations

The International Strategy Institute of the Chinese Communist Party’s Central Party School held its Second Young Scholar Forum in Beijing on December 6. Two hot topics were the U.S. strategy of rebalancing to the Asia-Pacific and the new type of Sino-U.S. major country relationship. People’s Daily reported the scholars’ views on these topics:

 

"Observing Obama’s actions in the past couple of years, the U.S.’strategy of returning to the Asia-Pacific’ is a true strategic adjustment. It increases the U.S. presence in Asia."

"The U.S.’ rebalancing to the Asia-Pacific strategy presents four challenges to China. It impacts the status of the security around China; it impacts the Sino-U.S. military security relationship; it impacts China’s regional influence; and it impacts China’s anti-terrorism situation."

"In its strategy of rebalancing to the Asia-Pacific, the U.S. also exports its ideology. In the battle of the ideology field, we can see that the U.S. wants to broadcast its ideology to the world. … The battle in the ideology field, though, does not use gun powder; it is more brutal."

"As for future U.S.’ China policy, the key issue is whether the U.S. is willing to give up some of its interests to China." 


"In the past, when the U.S. raised the ‘China threat’ issue, China would rebut it immediately. However, no matter how China rebutted, it was using another’s system of terminology. Now China has introduced the concept of a ‘new type of major country relationship’ and led the U.S. to change. This is a major achievement."

Source: People’s Daily Online, December 9, 2014
http://world.people.com.cn/n/2014/1209/c1002-26174514.html

Briefings | | |   US-China Relations

CCP Hackers Attacked the Epoch Times before the Announcement of Zhou Yongkang’s Arrest

From December 1 to December 6 or 7, 2014, Chinese Communist Party hackers attacked the Epoch Times website. On December 6, 2014, the CCP announced that it would expel the former domestic security chief Zhou Yongkang from the Party and arrest him on criminal charges. At critical times in the past, the CCP hackers have launched similar attacks. An Epoch Times article on December 10, 2014, made a list recording these past attacks. The list started in March of 2012, after the Epoch Times reported on the Wang Lijun incident. 

After Wang Lijun sought refuge in the US Consulate in Chengdu on February 6, 2012, the Epoch Times accurately predicted the fall of Bo Xilai and Zhou Yongkang.

Source: Epoch Times, December 10, 2014
http://www.epochtimes.com/gb/14/12/10/n4314994.htm

Briefings | | |   Grapevine

Huanqiu: How Large Should China’s Nuclear Arsenal Be in Order to Protect Its National Security?

On November 29, 2014, Huanqiu (the Chinese edition of Global Times) published an article titled, “How Large Should china’s Nuclear Arsenal Be in Order to Protect Its National Security?” According to Huanqiu, this is a question that concerns Chinese netizens because other countries tend to speculate about ‘the quality and quantity’ of China’s nuclear weapons. On November 19, 2014, the U.S. Congresses’ US-China Economic and Security Review Commission stated in its 2014 Annual Congressional Report, “In 2013, the Pentagon estimated that Beijing’s nuclear arsenal was comprised of roughly 50 to 75 nuclear capable intercontinental ballistic missiles (ICBMs) that could reach the U.S. Within the next 15 years, China will likely have an arsenal of over 100 ICBMs.”

In an interview, a Chinese national security expert, who did not want to release his name, told the Huanqiu reporter, “To ensure its national security in the future, China should not have a smaller nuclear arsenal or should have a little larger nuclear arsenal than the countries that have a medium size nuclear arsenal (for example, Britain, France and Russia).”

Sources: Huanqiu, November 29, 2014
http://world.huanqiu.com/exclusive/2014-11/5221131.html

Briefings | | |   Defense/Military