Chinascope – Page 739

21 CN: Profitability of the Large Companies in China is Worrisome

The TenCent website carried an article that was originally published by China Telecom on 21CN. The article stated that Chinese companies have been unable to make it to the list of the top brands in the world. They lag behind in their profitability and in their investment in research and development. According to the article, among the Forbes’ top 100 world’s most valuable brands list and the Interbrand’s Best Global Brands 2013, no Chinese brand made it to the list. Meanwhile the net profit that Chinese companies make lags far behind compared to those large companies in the U.S. and England. According to the China Enterprise Confederation, the profitability of the large companies in China is worrisome. Among the world’s top 500 companies, the average net profit for U.S. companies was 9.33 percent while Chinese companies were at 5.1 percent. Among the world’s top 500, of the 49 companies that had financial losses in 2014, one-third were Chinese companies. The article said that large companies in China lack the capacity for innovation and rely heavily on imports for their core technology. In 2014, among China’s top 500 companies, the average ratio of research and development spending to income from sales was 1.25 percent. This figure had declined over the last three consecutive years. At the same time, the technology commercialization ratio in China is only at 10 percent which is far below the 40 percent ratio in developed countries.

Source: TenCent, September 5, 2014
http://finance.qq.com/a/20140905/058701.htm

Briefings | | September 8, 2014 | Economy/Resources

Huanqiu: China Built the First G20 World Think Tank Summit System

On September 3, Huanqiu reported that the China Chongyang Institute for Financial Studies of Renmin University organized a G20 world think tank summit in Beijing, a step towards reinstating the world’s first G20 think tank system. The article said that the summit will help to lay out the plans for the upcoming G20 Leaders Summit in Australia. According to the article, the theme of the summit is “Great Finance and Global Comprehensive Growth.” The summit participants include think tanks from China, Russia, the U.S., India, Japan, and the EU, as well as representatives from the World Bank, the IMF, and the United Nations. The article claimed that hosting the summit shows the rise of China’s think tanks in their competitive position of the world knowledge. It also demonstrates the ability of China’s think tanks to attract, appeal to, and influence the think tanks in the world. In an interview with Huanqiu, the deputy director of the Chongyang Institute said that the reason that the Chongyang Institute took the lead to reinstate the G20 thank tank system is that China wishes to inject its wisdom and its ability into global management, especially in the reform of the international financial system. He said that China is the country that has made the fewest number of mistakes in financial management in the past 20 years and that the world’s future development needs the Chinese people’s governance experience.

Source: Huanqiu, September 5, 2014
http://world.huanqiu.com/exclusive/2014-09/5127787.html

Briefings | | September 8, 2014 | Government/Politics

People’s Daily: Party Leadership Provides the Fundamental Assurance to the People’s Congress System

Following Xi Jinping’s recent talk during the 60th anniversary of the People’s Congress, People’s Daily published a commentary in which it reported on the statement that Xi made. Xi stated, “In order to uphold and improve the People’s Congress’s system, the Party must maintain the core leadership power in China.” The article commented that China has no prosperity without the Party and the Party’s leadership must be increased not diminished. The article concluded that the People’s Congress is important and irreplaceable in managing the country but only when it is under the Party’s leadership can it maximize its role.

Source: Guangming Daily, September 7, 2014
http://politics.gmw.cn/2014-09/07/content_13087923.htm

Briefings | | September 8, 2014 | Government/Politics

People’s Daily: Radical Opposition Groups are the Major Roadblock to Democracy in Hong Kong

On September 5, an opinion article appeared on People’s Daily called, "Radical Opposition Groups are the Major Roadblock to Democracy in Hong Kong."

The article stated, "One can draw three conclusions. First, British colonial rule is not compatible with democracy. Basically, the development of democracy in Hong Kong got off the ground after the transfer of sovereignty. Second, the central government is an important driving force for the development of democracy in Hong Kong. The basic political framework of ‘one country, two systems; Hong Kong being governed by the people of Hong Kong’; and the Basic Law are the cornerstone of Hong Kong’s democratic governance. Third, democracy in Hong Kong is developing steadily and swiftly. If the Legislative Council of the SAR Government approves the reform package, Hong Kong will achieve universal suffrage in 2017."

"However, while speaking highly of the development of democracy in Hong Kong, we should also see that the development of democracy in Hong Kong still faces considerable difficulties and obstacles. One obstacle is that Hong Kong’s few political forces are resisting the central government’s governance rights."

"After reunification, the vast majority of people in Hong Kong have had a high degree of recognition that they are Chinese. However, since British colonial rule lasted a hundred years, there are still a small number of political forces holding a mentality of exclusion and confrontation against the central government. A handful of politicians even still regard the United Kingdom as their mother country, with a hope that the United Kingdom and other Western countries will interfere with Hong Kong’s politics. Although these political forces are few in number, with overseas support, they still have considerable political energy."

"The issue facing our society today is not whether to develop democracy, because democracy in Hong Kong has embarked on a road of rapid development. Anyone who blocks the development of democracy will be unpopular. The problem is that some political forces expect to mislead the quest for democracy in Hong Kong society by confronting the central authorities. If Hong Kong cannot achieve a high degree of consensus on the issue of national identity, the election of Chief Executive by universal suffrage in 2017 is likely to abort and the development of democracy in Hong Kong will be undermined. In order to achieve universal suffrage in 2017, we must prevent the radical opposition from creating social divisions on the issue of national identity, so that Hong Kong’s democratic politics can move forward within the framework of the Chinese Constitution and the Basic Law."

Source: People’s Daily, September 5, 2014

http://paper.people.com.cn/rmrb/html/2014-09/05/nw.D110000renmrb_20140905_8-05.htm

Briefings | | September 5, 2014 | Geo-Strategic Trend

Yellow Book: India and Pakistan Top Picks for the Expansion of the Shanghai Cooperation Organization

On September 5, the Chinese Academy of Social Sciences issued the Shanghai Cooperation Organization (SCO) Yellow Book (2014), a book which analyses the current international and regional situations that the SCO faces. The Yellow Book pointed out that, when various conditions are close to mature, China can consider discussing the expansion of the SCO with Member States and that a consensus with the member states is still needed for a number of important issues.

"First, the SCO’s legal basis should be reinforced. The rules of the game should be designed without compromising the fundamental interests of member states. The more member states, the more difficult it will be to achieve a consensus and change the rules of the game. The SCO should perfect its legal system as soon as possible so as to lay a solid legal foundation for the organization’s sustainable development."

"Second, the number of members should be expanded in stages, with a good grasp of the conditions and timing. As mentioned earlier, as the conditions mature for India and Pakistan to become SCO member states, they should be the first choices for SCO expansion. In the past, the SCO did not consider Iran. It was correct from a strategic perspective, but the SCO should maintain close cooperation with Iran, push Iran out of its ‘nuclear trap,’ and create conditions for its formal participation in the SCO."

"The SCO can also consider expanding its members to include the level of observer members, with Turkey as a candidate to be an observer member state. Turkey is a NATO member, but not an EU member. Culturally it is different from the West and is in an embarrassing situation because the West does not fully recognize it. Although it is a country with Muslims as the majority, Turkey is a secular state. Despite Turkey’s close ties with the West, It has shown quite good independence, aggressiveness, and flexibility in diplomatic affairs. Geographically, Turkey is in both Europe and Asia. It is an important gateway for China to reach Europe through Central Asia and West Asia. To include Turkey as an observer member (when conditions are mature, the SCO can absorb it as a full member) is conducive to regional stability and economic development."

"Through SCO negotiations, countries that are willing to join the SCO should accept SCO Charters and all of its founding legal documents and accept the ‘Shanghai Spirit’ advocated by the SCO. This helps the SCO maintain consistent positions on major international issues and improve operational efficiency.

The Yellow Book believes that, after gradually expanding member states, the SCO will gradually become an important platform for China to engage in regional security and economic cooperation and multi-cultural exchanges with relevant countries. The "Silk Road economic zone," stability and development in Afghanistan, energy and financial cooperation, the strike on "three forces" and other major issues will become the focus of SCO.

Source: People’s Daily, September 5, 2014

http://world.people.com.cn/n/2014/0905/c1002-25611065.html

Briefings | | September 5, 2014 | Geo-Strategic Trend

Chinese General Criticizes U.S. Containment of China

In an article in China’s People’s Daily, Qiao Liang (乔良), a professor at China’s National Defense University, a Major General in the People’s Liberation Army, and also the co-author of the book Unrestricted Warfare, criticized the U.S. for containing China via proxies.

Qiao stated, "Today, the U.S. strategists, through the hands of Japanese right-wingers and via the Diaoyu Islands dispute, have successfully blocked the process of the China–Japan–South Korea Free Trade Agreement negotiations and the process of the China-Japan currency swap. China’s periphery geopolitical environment is becoming complicated and grim."

"Now, we must understand the increasingly fierce global competition for resources, the U.S. eastward shift of its strategic center of gravity, and its strategy of ‘re-balancing to Asia’. Against such a backdrop, the Sino-Japanese dispute over the Diaoyu Islands, the Sino-Philippines dispute over Huangyan Island (Scarborough Shoal) and Renai Shoal (Second Thomas Shoal), and the Sino-Vietnamese dispute over China’s maritime rights and interests are not only bilateral competition over territories and maritime rights, but part of the greater game in the U.S.’ attempt to ‘contain China by proxy,’ to block China’s development, and to defend American hegemony."

"What is the real purpose of launching the strategy of ‘rebalancing to Asia’? There is only one answer: to disarm China’s potential challenge and threat to American hegemony."

"So, how will the U.S. achieve this? Ever since the financial crisis, we have seen that the U.S. has resorted to every conceivable means. Its methods include the following: pressure on RMB appreciation, anti-dumping investigations of Chinese products, higher tariff barriers, road blocks to Chinese acquisitions of foreign access to resources and buying of overseas companies, and excluding China from the TPP."

Source: People’s Daily, September 4, 2014

http://theory.people.com.cn/n/2014/0904/c40531-25601000.html

Briefings | | September 4, 2014 | US-China Relations

Beijing Warns External Forces not to Mess with Hong Kong’s Election Reform

After saying no to having an open election for Hong Kong’s chief executive, Beijing issued a strong warning to democratic countries. China’s Foreign Ministry spokesman Qin Gang said that Hong Kong is a Special Administrative Region of the People’s Republic of China. The relevant affairs regarding its political (electoral) reform are the internal affairs of the Hong Kong SAR. These are China’s internal affairs. No external forces are allowed to intervene. [1]

Beijing also issued a warning to Taiwan. Through the Taiwan Affairs Office of the State Council, it asked Taiwan to respect the [new] developments in Hong Kong’s political system. Taiwan Affairs Office spokesperson MA Xiaoguang stated that a few Taiwanese people have used the issue [of the Hong Kong election controversy] to discredit the "one country two systems" policy, damage Hong Kong’s prosperity and stability, and hinder the development of cross-strait relations. Such behavior is not welcomed. [2]

Source: People’s Daily, September 3, 2014

[1] http://hm.people.com.cn/n/2014/0903/c42272-25592777.html

[2] http://tw.people.com.cn/n/2014/0903/c14657-25592774.html

Briefings | | September 4, 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.