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

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

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Central Bank: Companies Not Willing to Borrow in Third Quarter

The well-known Chinese news site Sina recently reported that the Chinese Central Bank found that, in the third quarter of this year, the willingness for Chinese companies to take out loans reached the lowest point since the Bank started recording this number. The managers of most of the state-owned Chinese companies are worried about getting further into the debt. It is widely expected that the Chinese economy will not be able to achieve the goal of a 7.5 percent growth rate that the government set. At the same time, the government is also trying to control high risk loans. In addition, the banks are paying more attention to risk management. Trust companies are reducing their business activities in this downturn – they usually obtain funds from small investors and lend money to real estate developers with higher-than-usual interest rates. 
Source: Sina, October 9, 2014
http://finance.sina.com.cn/money/forex/20141009/194920495338.shtml
Briefings | | |   Economy/Resources

Xinhua: Russian Poll Showed China Considered the Friendliest Country

Xinhua recently reported that the All Russia Public Opinion Research Center released its latest poll results, showing that over half of the Russian population recognized China as the friendliest country. The poll used a sample of 1,600 people across 42 regions of the Russian Federation. When the Research Center conducted the same poll six years ago it found that only 23 percent of those surveyed said China was the friendliest. The poll also showed that Belarus, Kazakhstan, and India are considered friendly. In the meantime, the Russian people have a much worse impression of the United States, the European Union, Germany, and Ukraine. Around 73 percent of those surveyed thought the United States was the biggest enemy. The ratio was only 25 percent six years ago. 
Source: Xinhua, October 9, 2014
http://news.xinhuanet.com/world/2014-10/09/c_1112756560.htm
Briefings | | |   Geo-Strategic Trend

Global Times: China Has Become the Largest Economy

Global Times recently reported that, based on the World Bank’s latest calculation, China is now the largest economy in the world. Economic power also brings the power of political influence. Over a decade ago, China surpassed Japan to take second place. Some experts have suggested that China may not be at the top if a different method of calculation is used. The United States has been the largest economy since 1872. After around one and a half centuries, China has finally unseated the United States. China is seeking more power in world class organizations like the International Monetary Fund. With this new development, China hopes the current political balance will have to be adjusted. However China should be worried that the international community may ask China to shoulder more responsibilities. In the long run, India and Indonesia may catch up as challengers. However China is very likely to break the record that the Unites States set, which is to hold the top title for one and a half centuries. 
[Editor’s note: The method of calculaton used is called “purchasing power parity." It compares the purchasing power of the yuan inside China to the purchasing power of a dollar inside the United States.]
Source: Global Times, September 28, 2014
http://world.huanqiu.com/article/2014-09/5153652.html
Briefings | | |   Economy/Resources

Hong Kong, a Trap Set up for Xi Jinping

Many people view the current Hong Kong democracy movement as a confrontation between the people of Hong Kong and Beijing over universal suffrage and who controls the nomination. Not that many have realized that it also represents in-fighting within the Chinese Communist Party (CCP) itself.

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Perspectives | | |   Opinion

Central Bank Implies the Economy Has Worsened

China Business News reported that China’s central bank, the People’s Bank of China, stated at its third quarterly meeting that "The intricacies of the financial situation in China should not be underestimated," indicating the economy has worsened. 

According to financial analysts, the statement was significant in view of the message from the previous quarterly meeting where the central bank stated, “The economic and financial structure began to show positive changes, but the situation is still complicated. Both favorable and unfavorable factors coexist." Removal of the positive remark at the central bank’s third quarterly meeting may mean that, presently, negative factors have probably increased compared to the second quarter, adding pressure to the economy. These negative factors are mainly reflected in business conditions and the slowing down of the growth of profit. The latest PMI index shows that the trend of recovery in manufacturing and service industries has stopped. 
As China’s central bank, the People’s Bank of China issues monetary policy and regulates financial institutions in mainland China. 
Source: China Business News, October 8, 2014
http://www.yicai.com/news/2014/10/4025204.html
Briefings | | |   Economy/Resources

The Paper: The True Ranking of the Communist Party Leaders

Recently The Paper, a Shanghai based news portal, reported that there are stringent protocols about the sequential order in which Communist leaders are mentioned in news reports, and that such protocols are not officially acknowledged. 

 The commonly used term, “Party and State leaders,” in news reports is based on the Civil Servant Law of the People’s Republic of China, Article 16, which divides the posts of civil servants into the category of leading posts and non-leading posts. The top levels of leading posts are chiefs at the state level and deputies at the state level. “Party and State leaders” refers to the chiefs and deputies at the state level. 
“Party and State leaders” include the following Communist Party officials: Central Committee General Secretary, Politburo Standing Committee members, Politburo members, Secretariat of the Central Committee, Chairman and Vice Chairman of the Central Military Commission. 
“Party and State leaders” include the following state leaders: President and Vice President of China, Chairman and Vice Chairman of the Standing Committee of the National People’s Congress, Premier, Vice Premiers, State Council members, Chairman and Vice Chairman of the National Committee of the Chinese People’s Political Consultative Conference, Chairman and Vice Chairman of the Central Military Commission of the People’s Republic of China.  
Also included in the term “Party and State leaders” are President of the Supreme People’s Court and the Procurators-General of the Supreme People’s Procuratorate. 
It is common that one person holds multiple positions, so the actual number of “Party and State leaders” is lower than the total number of positions. Currently, the total number of Party and State leaders is about 70. 
There are stringent protocols about the sequential order in which Communist leaders are mentioned in news reports. No official documents are available for the public on this matter. Thus, people must figure it out from the news reports. 
Source: The Paper reprinted by sina.com, October 9, 2014 
http://yd.sina.cn/article/detail-iazpqypm6462325.d.html?vt=4&mid=cfkptvx2565783
Briefings | | |   Government/Politics

People’s Daily: Japan-U.S. Alliance Beautiful Packaging, Ugly Essence

On October 8, Japan and the United States jointly issued an interim report discussing revisions to the "Japan-U.S. Defense Cooperation Guidelines." In a commentary, People’s Daily [overseas edition] stated that the report is just a product beautifully packaged on the outside, but ugly in essence. It exposed the two countries’ true intention of pursuing their selfish interests. 

The article said that Japan has two purposes in promoting the revision to the "Japan-U.S. Defense Cooperation Guidelines." The first is to get rid of the restrictions of the post-war international order. In particular, it wants to eliminate the limitation of its peace constitution on Japan’s development of its armed forces and the rights of the [Japanese] Self-Defense Forces. The second purpose is to target China. 
From the U.S.’ perspective, revising the Defense Guidelines will serve its "Asia-Pacific rebalancing" strategy. The way Americans care about their dominance in the Asia-Pacific region is extreme. However, currently, their internal and external problems plague them. This superpower has difficulty achieving its goals using only its own power. Therefore, the interim report pointed out that the United States needs to develop more balanced and effective alliances. 
The revised "Japan-U.S. Defense Cooperation Guidelines" provide a “blueprint" of how to grab the common interests in the world using the alliance between the two countries as a tool. The thought of Japan-U.S co-dominance is growing insidiously. With the connivance of the United States, Japan may become the new "international police," waving the flag for the "new interventionism." 

Source: Xinhua, October 9, 2014 
http://news.xinhuanet.com/world/2014-10/09/c_127074404.htm

Briefings | | |   US-China Relations

Chinese Ambassador to Germany on Sino-German Relations

On October 9, Shi Mingde, the Chinese Ambassador to Germany, published an article on People’s Daily titled, "Use an All-out Effort to Develop an Upgraded Version of Sino-German Relations." Below is a translation of selected excerpts.
"For a little over a year, the frequency of exchanges of high-level visits between China and Germany has been unprecedented. This clearly shows that, between the concerted efforts of China’s new generation of central leadership and the new government of the Federal Republic of Germany, Sino-German relations have not only developed steadily; they have reached the highest level in history in terms of depth and breadth. The leaders of the two countries have maintained a close and trusting relationship."
"Founded on solid bilateral political mutual trust, Sino-German relations continue to carry a rich strategic content. Entering into the new century, Sino-German relations embarked on a ‘fast track’ and ‘acceleration period’ of comprehensive development; they have successfully achieved a ‘triple jump.’ In 2004, the two sides announced a partnership in global responsibility within the framework of the China-EU comprehensive strategic partnership; 2010 saw a comprehensive advancement of that bilateral strategic partnership and the establishment of a consultation mechanism. In 2014, the bilateral relationship will elevate further to an all-around comprehensive strategic partnership relationship. This not only points out the direction for the continued expansion and deepening of Sino-German relations, but also bears far-reaching significance for creating a new type of mutually beneficial relationship between a developing nation and a developed nation."
"Pragmatic cooperation between the two countries has become a long lasting force of propulsion for the relationship. This year, against the backdrop of a more uncertain and unstable world economy, January – August Sino-German trade reached US$117.35 billion, a year-over-year increase of 12.2 percent. The bi-directional investment has also seen a substantial increase and is expected to reach a record high year end. Bilateral cooperation in politics, economics, the humanities and international affairs are comprehensive, pragmatic, extensive, and deep. The China-Germany inter-governmental consultation is the highest-level consultation mechanism between China and any Western country. Nearly 30 minister level senior officials are expected to participate in this round of the ‘Sino-German joint meeting of the Cabinets.’ Almost all members of the German Cabinet will participate to discuss plans for future cooperation between China and Germany. The two countries decided to upgrade diplomatic and security strategic dialogue, start a high-level financial dialogue, promote high-end manufacturing and ‘Industry 4.0’ cooperation, and implement Visa Facilitation Services. The ‘four-wheel drive’ pragmatic cooperation between China and Germany will provide a lasting momentum to promote China and Germany as the top partner in each their respective regions."
Source: People’s Daily, October 9, 2014
http://paper.people.com.cn/rmrb/html/2014-10/09/nw.D110000renmrb_20141009_4-03.htm
Briefings | | |   Geo-Strategic Trend