Chinascope – Page 737

Exponential Growth in Cloud Computing Expected in Chinese IT Market

Well-known Chinese site Sina recently reported that Chinese IT experts have the strong expectation of major growth in the Chinese cloud computing market. The Ministry of Industry and Information Technology just released its 2014 Cloud Computing Whitepaper, which revealed that the Chinese cloud computing market size was RMB 4.76 billion (around US$777 million) in 2013, representing a 36 percent year-over-year growth rate that was above the global average. Senior government officials at the Ministry indicated that China’s key strategy is to build large scale leading companies in the field and to establish a full-cycle industrial chain (from suppliers to retailers). Financial market analysts expressed the belief that China is ready for a major boost in the cloud computing market segment, since the business models and customers are becoming much more mature.

Source: Sina, September 23, 2014

http://finance.sina.com/bg/tech/sinacn/20140923/19581132928.html

Briefings | | September 30, 2014 | Information/Technology

People’s Daily Article on the Average Income of College Graduates Born in the 1990s

People’s Daily carried an article on a report that the Market and Media Research Center of Beijing University recently published on the average income of college graduates in China. One area of the report focused on the job market for the college graduates who were born in the 1990’s. The research results showed that, even though GDP grew four times in the past ten years and the minimum wage grew from 380 (US$62) a month to 1400 (UD$229) a month, the average salary for college graduates was 2,443 (US$399) a month in 2014 compared to 1,550.7 (US$253) a month in 2003 [an increase of just over 1.5 times for that period]. The report showed that the starting salary varies in different geographic locations, with those in Shanghai, Beijing, and Shenzhen earning 3,241 (US$529), 3,109 (US$507), and 2,905 (US$474) respectively versus those in the Midwestern regions who make as little as 2,000. Moreover, even for those who graduate from elite colleges or with a Masters’ degree, the income gap is getting smaller. In addition, the major that has the highest income has shifted from computer science, business management, and industrial technology in 2003 to hotel management, telecommunications, and e-business in 2013.

Source: People’s Daily, September 28, 2014
http://finance.people.com.cn/n/2014/0928/c1004-25749008.html

Briefings | | September 29, 2014 | Government/Politics

Guangming Daily: PLA Intensive Military Exercises Showcase China’s Military Power

Guangming Daily carried an article that China News Service had originally published on the PLA’s recent intensive military exercises. The article reported that, in September, the PLA conducted no less than six military exercises, including one in the South China Sea. It indicated that some military experts view the exercises as a move to strengthen China’s military power while demonstrating that China is not threatened by any external military power. Even though the article mentioned that the exercises were planned at the beginning of the year, it also quoted a statement by an anonymous foreign media saying that “when the U.S. military conducts military exercises, it takes China as its opponent. Now China is using its military exercises in the South China Sea as a response to demonstrate that China is not afraid of the US and can fight against it.”

Source: Guangming Daily, September 28, 2014
http://mil.gmw.cn/2014-09/28/content_13397655.htm

Briefings | | September 29, 2014 | Defense/Military

Huanqiu: China and Japan Should Be Rational in Bilateral Relations and Not Let the U.S. Benefit

In an opinion article, Lian Degui, deputy director of the Asian Pacific Research Center at the Shanghai Institute of International Affairs, said that the U.S. has always been dividing China and Japan and that dividing China and Japan is a geopolitical need for the Unites States. Lian observed that the United States is now using the "China threat" theory and the TPP (Trans-Pacific Partnership) to block Sino-Japanese cooperation. It asks Japan to cooperate militarily and politically with the U.S. in its Asia-Pacific rebalancing strategy, acting as a pawn of the United States.

As for how China should understand Sino-Japanese relations, Lian expressed the belief that Japan has three important attributes in relation to China. Japan is one of China’s most important neighboring countries; it is one of China’s most important regional powers; and it is one of China’s most important trade partners. [China] should recognize the fact that, although the Sino-Japanese relations are currently at an impasse, the reality of the China and the "Abe" relationship is not equivalent to the entire Sino-Japanese relationship.

Lian concluded that China and Japan should make a rational assessment of their own interests. They should avoid pushing the other side in the opposite direction so they do not become chess pieces of an extraterritorial nation on the [U.S.’s] strategic chessboard and let the third party [the U.S.] benefit.

Source: Huanqiu (Global Times), September 23, 2014

http://news.xinhuanet.com/mil/2014-09/23/c_127020412.htm

http://mil.huanqiu.com/observation/2014-09/5146600.html

Briefings | | September 26, 2014 | Geo-Strategic Trend

China Uncovered $10 billion in Fraudulent Entrepot Trade

At a press conference on September 25, 2014, the State Administration of Foreign Exchange (SAFE) discussed its investigations into entrepot trade, a trading post where merchandise can be imported and exported without paying import duties. SAFE stated that its investigations confirmed that the amount of China’s entrepot trade using false documents had reached $10 billion.

Wu Ruilin, Deputy Director of the Management Inspection Division of SAFE, stated that, since April of last year, SAFE has conducted special investigations of entrepot trade in 13 provinces and cities. In 2014, the effort has expanded to include 24 provinces and cities.

Wu further explained that these investigations found that entrepot trade has become a speculative arbitrage tool because many companies use forged or altered commercial documents, re-use property documents, or use the import declaration documents for general cargo trade.

Source: State Administration of Foreign Exchange, September 25, 2014
http://www.safe.gov.cn/resources/wcmpages//wps/wcm/connect/safe_web_store/safe_web/whxw/ywfb/node_news_ywfb_store/d258558045990e0ba668aed2d1baac76/

Briefings | | September 26, 2014 | Economy/Resources

Sinosteel’s Revenue Decline May Result in a Default

Beijing News published an article in which it reported that Sinosteel may not be able to meet its obligation to pay an amount due that totals tens of billions of yuan. According to the article, the liabilities to asset ratio for Sinosteel has remained between 90 and 95 percent since 2009. Prior to 2009, the business model for the State-owned steel companies involved importing ore and doubling or tripling the price when re-selling the ore to domestic downstream steel mills. In late 2009, these downstream steel mills were allowed to import ore, thus eliminating the high profit margin for large State-owned companies. Sinosteel’s revenue dropped from 180 billion yuan in 2010 to 140 billion yuan in 2013. Another reason for the financial loss is that it has failed in a series of investments overseas.

Sinosteel is under the China’s State-Owned Assets Supervision and Administration Commission. It has 86 subsidiaries, of which 63 are in China and 23 overseas. Their functions include developing and processing metallurgical mineral resources, trading and logistics of metallurgical raw materials and products, related engineering technical services, and equipment manufacture.

Source: The Beijing News, September 24, 2014

http://www.bjnews.com.cn/finance/2014/09/24/334968.html

Briefings | | September 26, 2014 | Economy/Resources

Huanqiu: U.S. Accuses Chinese Military of Hacking U.S. Military Contractors

Huanqiu (Global Times), a publication under the auspices of People’s Daily, published an article refuting a U.S. Senate report released on September 17. The report alleged that, 20 times within a period of one year, hackers associated with the Chinese military infiltrated the computer systems of the U.S. military’s private contractors for transportation services. Chinese Foreign Ministry spokesman Hong Lei said that Chinese law prohibits hackers from conducting any destructive attacks. China urges the United States to stop its irresponsible attacks and accusations against China, stop its acts of large-scale, systematic network attacks against other countries, and do things that are helpful to maintaining peace and security in cyberspace.

Chinese military expert Li Jie told the reporter from Huanqiu that, in the current situation, the United States’ pace of returning to Asia is very slow. There is nothing much it can do right now. The reason that it frequently accuses China of hacking is to find an excuse to promote its agenda of advancing to the Asia-Pacific, to generate public opinion within the United States and the world to enable it to improve its defense capabilities, and to deploy a large number of weapons in China’s frontier regions. Li Jie believes that this is even a smoking gun of the United States to prepare for the next step, which is to attack China’s network. Emphasizing that Chinese military hackers are conducting such an invasion further revealed the U.S. intention of guarding against China’s military.

Source: Huanqiu, September 19, 2014

http://news.xinhuanet.com/mil/2014-09/19/c_127005057.htm

http://world.huanqiu.com/exclusive/2014-09/5142810.html

Briefings | | September 25, 2014 | US-China Relations

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.