Chinascope – Page 728

China Surprisingly Suffered a US$100 Billion Decline in Foreign Exchange Reserves

Well-known Chinese news site Sina recently reported that official third quarter government reports showed an unexpected US$100 billion decline in China’s foreign exchange reserves. This was the first decline after nine consecutive quarters. There is no clear indication of where the money went. Some experts suggested this could have been caused by China’s central bank making international investments. Some expressed the belief that more and more Chinese companies and individuals are holding on to more foreign currencies because they worry about a potential devaluation of the Chinese currency. Another possible cause of the decline could be the recent appreciation of the U.S. dollar, which caused a decline of the valuation of all assets not priced in U.S. dollars. Chinese Premier Li Keqiang has said twice this year that the high level of China’s foreign exchange reserves is becoming a very heavy burden for China.

Source: Sina, October 17, 2014

http://finance.sina.com.hk/news/-35-7072165/1.html

Briefings | | October 21, 2014 | Economy/Resources

India Considers Raising Import Tariffs on China

China Stock Network recently reported that India is considering the possibility of increasing the import tariffs on Chinese goods in order to deal with the imbalance seen in the trade between the two countries. In 2013, India’s export volume to China was US$15 billion while its import volume from China reached US$51 billion. In the long run, India cannot sustain the trade deficit on this level. Some kind of protection has to be established. In the meantime, Indian government officials have been concerned about the dumping approach the Chinese companies are taking, which may destroy their Indian competitors. Some international media have expressed the belief that the increase in tariffs may cast distrust between the two countries and India could be criticized for protectionism that kills competition.

Source: China Stock Network, October 16, 2014

http://news.cnstock.com/news/sns_bwkx/201410/3208847.htm

Briefings | | October 21, 2014 | Geo-Strategic Trend

People’s Daily: The U.S. Must Adapt to The New Norm in International Relations

People’s Daily recently published an article discussing the position the United States should take in the new world order. The author started by suggesting that the United States does not like to hear people say the U.S. is suffering a decline in power. President Obama has already repeated numerous times that the United States is the only super power and will continue to lead the world for another century. However, the article expressed the belief that U.S. power, at least “relatively,” has declined. Although it has largely maintained the global allied structure, the U.S. has shown weaknesses when defending its power on too many fronts across the world. President Obama’s strategies have not worked out domestically in the partisan fights. They have not worked out in the Asia-Pacific with regard to “rebalancing.” They have not worked out in Europe, the Middle East, and Russia. With China, the U.S. did not handle things well either, such as with the classic “Taiwan issue.” The author concluded that the world order has changed in the new century and the U.S. needs to learn to be an “equal player” that must adapt to “The New Norm.”

Source: People’s Daily, October 18, 2014

http://world.people.com.cn/n/2014/1018/c1002-25859142.html

Briefings | | October 21, 2014 | US-China Relations

Close to 50 Percent of Real Estate Development Companies Went Out of Business in the Past Five Years

Guangming Daily recently published an article about real estate development companies. The article stated that by the end of 2013, the number of real estate development companies registered in China was 42,000, which was 36.6 percent lower than the number in 2010 and 50 percent lower than 2008. The article said that, because the current real estate market continues to be soft, most of the small to mid-size real estate development companies face serious cash flow issues. Some of them have a debit ratio close to 120 percent, while the short term liquidity ratio and total Asset Turnover are getting worse as well. In addition, the on-hand inventory level continues to grow. The article said that the only solution to the problem is to have an aggressive sales strategy and to use the income from sales revenue to pay back the debts.

Source: Guangming Daily, October 17, 2014
http://economy.gmw.cn/2014-10/17/content_13565131.htm

Briefings | | October 20, 2014 | Economy/Resources

Art Expert: We Lack Art Works That Can Truly Represent China

China Economy reported on a research and study forum on contemporary art that was held in Wuhan city in Hubei Province on October 17. During the forum, an art expert in attendance there said that 3,000 art exhibits had been held in China in 2013. However, very few of those displayed high quality art works or could be used for research purposes. The art works lacked depth or creativity. There was also shortage of artists and art works that could truly represent China or its culture, or which had any ethnic significance.

Source: China Economy, October 18, 2014
http://www.ce.cn/culture/gd/201410/18/t20141018_3727568.shtml

Briefings | | October 20, 2014 | Government/Politics

People’s Daily: Xi Jinping Discusses Negative Trends in the Culture Industry

People’s Daily published an article in which it discussed an important speech that Xi Jinping delivered during an arts and cultural forum held in Beijing on October 15. The article said that Xi not only laid out the Party’s expectations about cultural work in the current age; it also criticized certain phenomenon in the culture industry. It listed five major negative trends in the culture industry. According to Xi, the problem with art and cultural works include the following. They have become a slave to the market and only seek economic benefits. Those who work in the field only seek fame and success but are not willing to work earnestly on creativity. They are copycats of each other, focusing only on quantity but not quality. They are distant from reality, are filled with off-color humor and have vulgar contents. Finally, those who work in the field lack professional ethics and have a poor public image.

Source: People’s Daily, October 20, 2014
http://culture.people.com.cn/n/2014/1020/c87423-25865500.html

Briefings | | October 20, 2014 | Government/Politics

Why Can’t Civilized People Attain Democracy?

[Editor’s Note: After China’s National People’s Congress finalized its decision to "control" who gets nominated to run in the election for the chief executive of Hong Kong in 2017, the people in Hong Kong went to the street to demand true universal suffrage. At first, it was known as the "Occupy Central" movement. The world looked on in amazement. Pro-democracy media supported the movement, while the pro-Chinese Communist Party (CCP) media blamed the protesters for disrupting the social order and damaging Hong Kong’s economy. Diane Liu, an independent Chinese writer, discusses the maturity of the protesters and how civilized their actions are, as well as the lies and distortions that the CCP disseminates in order to defame them. A translation of her discussion follows.] [1]

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Reports | | October 19, 2014 | Report

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.