Chinascope – Page 725

Industrial and Commercial Bank of China: Bad Debts Grew 72.5 Billion Yuan (US$11.83 billion)

Xinhua recently reported on the financial performance of the Industrial and Commercial Bank of China. Based on the first three quarters of 2014, even though its net profit is growing, the amount of outstanding bad debts has reached 766.9 billion yuan (US$125 billion), an increase of 72.5 billion yuan (US$11.83 billion) since the end of the second quarter. Its bad loan ratio is 1.16 percent, up by 0.09 percent from the second quarter. The report also stated that the bank’s overall risk compensation ability is stronger as its loan loss provision grew 69.8 billion yuan (US$11.39 billion); its provision coverage ratio, an indicator of how protected a bank is against future losses, is at 247.15 percent, down 15.74 percent from the second quarter, while its loan provision ratio, the ratio of loan loss provision to outstanding loans, is at 2.88 percent up 0.04 percent from the second quarter.

Source: Xinhua, November 17, 2014
http://news.xinhuanet.com/fortune/2014-11/17/c_127217568.htm

Briefings | | November 17, 2014 | Economy/Resources

People’s Daily: New York Times’ Editorial Was Off Base, Inappropriate, and Dishonest

People’s Daily published an article commenting on a recent editorial that the New York Times published on China’s visa restrictions on foreign journalists. People’s Daily stated that the editorial was off base, inappropriate and dishonest. The article countered that foreign journalists are allowed in China including at the recent APEC Summit, the World Economic Forum in September, and the Youth Olympic events in August. It also declared that foreign media must follow the laws in China; otherwise they will receive a warning or have their licenses suspended. The article continued to list a number of incidents in which the New York Times was dishonest in its reporting. The article concluded with a warning that foreign media should learn how to respect the rights of other countries while also obeying the laws there.

Source: People’s Daily, November 17, 2014
http://world.people.com.cn/n/2014/1117/c1002-26035484.html

Briefings | | November 17, 2014 | US-China Relations

Guangming Daily: Democracy is the Main Cause of the World’s Political Conflicts

Guangming Daily published an abstract from a research paper written by Yang Guangbin, head of Institute of Comparative Politics and Economics at Renmin University. In the abstract, Yang stated that the future of the world will consist of different forms of conflict between democratic countries. Yang pointed out that democracy is the main cause of the world’s political conflicts and such conflicts often involve fighting and bloodshed. Yang said that it is very important to take another look at the contents of democracy and its inner meaning.

Source: Guangming Daily, November 15, 2014
http://theory.gmw.cn/2014-11/15/content_13846454.htm

Briefings | | November 17, 2014 | Government/Politics

Chinese Academy of Engineering Academician: Cyber Security Is the “Fifth Territory”

Ni Guangnan, a computer expert and academician at the Chinese Academy of Engineering, said in a lecture that "Cyberspace has become the fifth territory after land, sea, air, and outer space. Like the other territories, cyberspace must also reflect the country’s sovereignty. To protecting cyber security is to protect national sovereignty."

In his view, both offensive and defensive sides to network security and information security exist. In this sense, independent ownership and control of core technology and equipment, information products, and services are a precondition to ensuring network and information security.

Source: Xinhua, November 11, 2014

http://news.xinhuanet.com/tech/2014-11/11/c_1113196301.htm

Briefings | | November 14, 2014 | Defense/Military

Ministry of Education: Engineering Graduates Lack Hands-on Ability

On November 13, 2014, China’s Ministry of Education released its 2013 report on engineering education, the first of its kind. The report was based on visits to six trade associations and societies, interviews of close to 30 experts, surveys of over 260 employers, and surveys conducted on over 40,000 students.

The report concluded that over 80 percent of employers were able to recruit college graduates in the engineering field and that close to 70 percent of these graduates now work in areas relevant to their majors in college. The report also found that engineering graduates lack hands-on ability and that engineering graduates need to improve their international competitiveness, management skills, and cross-disciplinary ability.

Source: Xinhua, November 13, 2014

http://news.xinhuanet.com/2014-11/13/c_1113239452.htm

Briefings | | November 14, 2014 | Economy/Resources

A Reduction in Production Led to APEC Blue

On November 13, 2014, the Beijing Environmental Protection Bureau stated that the measures taken during the APEC period to reduce air pollution brought blue skies to Beijing (APEC blue). According to its press release, during this period, PM2.5 particles were reduced by over 30 percent on a daily basis in Beijing and its neighboring regions. Since there were fewer cars on the road, the automobile speed in Beijing went up from 22 km per hour to 50 km per hour.

Construction sites were shut down from November 3 to 12. Factories which released a high concentration of pollutants were temporarily closed. The use of privately owned automobiles was subject to daily restrictions based on whether the license numbers were odd or even. Lastly, Tianjin, Hebei, and other neighboring regions also cooperated temporary in helping to reduce pollution.

Source: Xinhua, November 13, 2014

http://news.xinhuanet.com/2014-11/13/c_1113239432.htm

Briefings | | November 14, 2014 | Economy/Resources

Defaults on Residential Loans Continue

On November 7, 2014, Caixin published an article on bad loans in the first half of 2014. The article stated that 90 percent of the bad bank loans in Sichuan Province were residential loans.

Back in September, the China Banking Regulatory Commission, Sichuan Office, ordered banks under its jurisdiction to conduct internal audits of their residential loans. The result of these internal audits showed that, from January to June of 2014, nonperforming loans made by banks in Sichuan Province increased to 277 million yuan, of which 247 million yuan were residential loans. These loans accounted for about 90 percent of the total nonperforming loans, representing a 79 percent increase compared to the previous year.

This was not an isolated case. As the economy has slowed down, defaults on housing mortgages have been rising throughout China due to reduced family income or declining business. For example, in Erdos Inner Mongolia, where people walk away from their investment houses when the housing price goes down, bad residential loans reached 500 million yuan in August 2014.

Source: Caixin, November 7, 2014

http://finance.caixin.com/2014-11-07/100747927.html

Briefings | | November 13, 2014 | Economy/Resources

People’s Daily: Factions Break the Political Rule

On November 6, People’s Daily published a commentary that stated, "The second round of the Central Inspection Team’s Tour found that factions are a common phenomenon in many places."

The article criticized this common practice among officials in China. "Party members and cadres should remember that forming factions, providing benefits to officials, making decisions that follow one’s own way, or openly endorsing something while secretly objecting to it, are all not allowed in the Party. Cadres should understand that the ‘true protection’ [for themselves] is not ‘which line they take,’ ‘which circle they belong to,’ or ‘whose people they are.’"

[Editor’s note: Wang Qishan initiated the Central Inspection Team’s Tour as part of the anti-corruption campaign. Wang, to support Xi Jinping, has taken down many officials, including both high-ranking officials ("tigers") and low-level officials ("flies"). Many of these officials are from the faction of Jiang Zemin, former head of the Chinese Communist Party.]

Source: People’s Daily, November 6, 2014
http://cpc.people.com.cn/pinglun/n/2014/1106/c78779-25983172.html

Briefings | | November 12, 2014 | Government/Politics

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

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

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

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