Chinascope – Page 733

China Suspended Applications for the Issuance of Corporate Bonds

The China National Development and Reform Commission (NDRC) has suspended the acceptance of corporate applications for the issuance of new bonds. The official reason for the suspension is that the authorities are developing new rules but there is no set date to resume accepting applications.

The suspension is closely related to the anti-corruption campaign in the bond market which started early last year. Analysts believe that the NDRC approval system for the issuance of corporate bonds has been a major cause of corruption in the bond market. It is expected that the NDRC will make comprehensive changes in the rules.

Source: Caixin.com, October 14, 2014

http://finance.caixin.com/2014-10-14/100738442.html

Briefings | | October 16, 2014 | Government/Politics

Beijing Suffers Intense Haze

From Oct 7 to Oct 11, Beijing suffered five days of intense haze. A large portion of Northern China was also the victim of haze. In many places, the visibility was below 1 km (0.6 mile). Sometimes it was even below 500 meters (0.3 mile).

The Hong Kong based South China Morning Post reported that, in order to create a clean sky during the upcoming APEC Economic Leaders’ Meeting in Beijing, "employees of government departments, quasi-government institutions, and organizations in Beijing will be granted a six-day holiday starting on November 7 and continuing through November 12." "The meeting will be held on November 10 and 11. The ministers of 21 Pacific-rim governments will meet from November 7."

People’s Daily published an article stating that China’s current smog treatment is ineffective. There have been many theories on the cause of the smog, but no one knows exactly which one is the real culprit. On the simpler pollution treatment issue, local governments are not synchronized. The central government has established a coordination mechanism with six provinces/autonomous regions/cities to treat the air pollution. It includes Beijing, Tianjin, Hebei, Shandong, Shanxi, and Inner Mongolia. However, different local government have different regulations. For example, Hebei’s fine for pollution discharge is only 20 or 30 percent of the amount of fines in Beijing. Some companies would rather move to Hebei to pay the penalty than spend money to treat the pollution.

The local environmental protection agencies do not have enough power to enforce pollution treatment regulations. Many big pollution offenders also contribute a substantial amount of taxes to local governments. As a result, the local governments protect them.

Source:
1. South China Morning Post Online, October 10, 2014
http://www.scmp.com/news/china/article/1613232/beijing-marks-apec-summit-extra-public-holiday-moves-cut-pollution
2. People’s Daily Online, October 10, 2014
http://politics.people.com.cn/n/2014/1010/c1001-25801921.html

Briefings | | October 15, 2014 | Economy/Resources

People’s Daily on North Korea’s Unification Proposal

When South Korean President Park Geun-hye spoke at the Dresden University of Technology in Germany on March 18, she made several proposals on the steps to take toward the peaceful unification of the Korean Peninsula. On October 10, North Korea countered with the idea of establishing the "Democratic Confederate Republic of Koryo (Korea)."

People’s Daily interviewed some think tankers about North Korea’s proposal. Their analysis was that North Korea was afraid that Park’s "Dresden Proposal" would unify the country on an economic basis, which would mean the "peaceful revolution" of North Korea. Therefore North Korea countered with the proposal of a federation system. The think tankers felt that both sides realize that war will not resolve the problem of the peninsula. The two sides should reach an "independent and peaceful unification." However the issue of "independence" remains as the key.

Source: People’s Daily, October 14, 2014
http://paper.people.com.cn/rmrbhwb/html/2014-10/14/content_1487567.htm

Briefings | | October 15, 2014 | Geo-Strategic Trend

Xinhua: Obama Is in Trouble, but the China Card Can Save Him

Xinhua published an article stating that, in the upcoming mid-term election in the U.S., Obama is in trouble. The article suggested that playing the China card can help him get out of trouble. It reported that recent polls, conducted one month before the mid-term election, showed that Obama’s public support was 43 percent, far below the 75-year average of 53 percent. "According to a New York Times report, Obama’s low public support makes him a ‘negative asset’ for the Democrats. Many Democratic candidates in swing states have clearly rejected his help in their campaigns, including Iowa, where Obama started his political life."

The article predicted that Republicans will continue to hold the majority of the House but Democrats may lose the Senate. If that happens, "President Obama will become a complete ‘lame duck.’" Then Obama will not be able to achieve much in the next two years, which is likely to burst the Democrats’ dream of keeping the White House in 2016.

Obama’s domestic challenges include the fact that the living standard for the average American has gone down and he has only done a lot of talking about the immigration reform issue. In international affairs, such as the Ukraine crisis, the wars in the Islamic world, and the outbreak of Ebola, Obama’s reaction has been "slow, weak, and ineffective." "His actions have also given the international community a reason to talk about the ‘Decline of the U.S.’"

The article claimed that Sino-U.S. relations are something that Obama can use to improve his international performance.

Source: Xinhua, October 14, 2014
http://news.xinhuanet.com/world/2014-10/14/c_1112809159.htm

Briefings | | October 15, 2014 | US-China Relations

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 | | October 14, 2014 | 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 | | October 14, 2014 | 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 | | October 14, 2014 | 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.

Continue reading →

Perspectives | | October 10, 2014 | Opinion

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.