Chinascope – Page 748

Survey: Most Chinese Private Entrepreneurs Choose Not to Participate in Mixed Ownership Reforms

On August 13, China Review News reported that Central government owned enterprises, such as PetroChina, Sinopec, and the National Grid proposed launching a reform that will include a mixed form of ownership: state-owned and privately-owned mixed ownership. Following their lead, financial service companies such as the China Everbright Group and the Bank of Communications are also lining up to develop their own mixed ownership reforms. Moreover, regional governments are gearing up to join in the mixed ownership process as well. Chongqing City is going to transform two-thirds of state-owned enterprises into mixed-ownership enterprises. Guangdong Province has announced that, by 2017, more than 60 percent of enterprises will be mixed-ownership enterprises. Hebei Province has stated that more than 70 percent of the second level state owned enterprises will complete their task of ownership diversification within the next two to three years. However, a survey showed that over 60 percent of the private entrepreneurs have chosen not to join the state-owned enterprises; over 90 percent of the private entrepreneurs would rather “wait and see.”

Source: China Review News, August 13, 2014
http://hk.crntt.com/doc/1033/3/5/6/103335605.html?coluid=53&kindid=0&docid=103335605&mdate=0813081616

Briefings | | August 20, 2014 | Economy/Resources

Xi Jinping: Truly Push forward Reform with Real Guns and Knives.

On August 18, 2014, China Review News reported on the fourth meeting of the Chinese Communist Party Central Leading Group for Comprehensively Deepening Reforms, which had been held that same day. Xi Jinping, the paramount political and military leader of China, delivered a speech in which he discussed “pushing the reforms forward with real guns and knives.” Those present at the meeting included the deputy heads of the central reform leading group, Li Keqiang, Liu Yunshan, Zhang Gaoli and a number of others. The participants examined specific issues such as salary system reform targeting top officials of the central-government-owned enterprises; and the benefits and “job-related” expenses regulation that focused on executives of the central-government-owned enterprises. They observed that the current salary structure and management are neither healthy nor reasonable. They also discussed the higher education entrance exam and enrollment reforms and approved a media guide, a 2014-2020 reform implementation plan, and a current on-going reform report.

Source: China Review News, August 18, 2014
http://hk.crntt.com/doc/1033/4/4/4/103344462.html?coluid=151&kindid=11510&docid=103344462&mdate=0818181237

Briefings | | August 20, 2014 | Government/Politics

People’s Daily: American Media Call for Tit for Tat against Chinese Antitrust Investigations

People’s Daily recently published a commentary dismissing the points that angry American media have been making about a series of antitrust investigations against American companies in China. In the past several months, high profile American companies (among other foreign companies) have been subject to Chinese antitrust investigations. Examples are Microsoft, Qualcomm, Accenture, General Motors and General Electric. Many Western media companies, especially some of the American media companies such as Fortune, have called for “Tit for Tat” retaliatory actions. The commentary said these “suggestions” are “very ignorant” and that they “put the spirit of the free market to shame.” The author expressed the belief that the voices aired by companies like Fortune are “too stupid to realize” that Western companies have been enjoying special treatment in China for too long.

Source: People’s Daily, August 15, 2014

http://finance.people.com.cn/n/2014/0815/c1004-25474576.html

Briefings | | August 19, 2014 | US-China Relations

Provisional Regulations on Real Estate Registration Released

The well-known Chinese news site Sina recently published a series of reports on the newly released Provisional Regulations on Real Estate Registration. The State Council Legislative Affairs Office is currently seeking public comments on the Provisional Regulations, which created a massive social discussion across China. Experts expressed the belief that the new Regulations will have four significant consequences. First, they will set the stage for a new property tax. Second, they will empower anti-corruption operations. Third, they will trigger a significant housing price drop as government officials engage in panic-selling. Fourth, they will result in an insistence on better government financial transparency. Most of the nationwide discussions have focused on the possibility of immediate panic-selling in the second-hand real-estate market. However the new Regulations in their current form only allow the government and real-estate owners (and “stakeholders”) to search the Registration database and the search results cannot be revealed to the public.

Source: Sina, August 15, 2014

http://finance.sina.com.cn/focus/bdcdj/

Briefings | | August 19, 2014 | Government/Politics

Central Bank: Significant Issues Related to July’s Loans and Nonperforming Loans

People’s Daily recently reported on some key financial data newly released by China’s central bank. In the month of July, RMB loans totaled 385.2 billion yuan (around US$62.7 billion), which represents a year-over-year decline of 45 percent, or month-over-month decline of 64 percent. This was the lowest level of RMB loans since 2010. Experts cited the lack of demand as the key cause of the sharp decline in loans. In the meantime, the balance of the nonperforming loans in all commercial banks reached RMB 694.4 billion yuan (around US$113 billion), which accounted for an increase of RMB 102.4 billion yuan (around US$16.7 billion) since the beginning of the year. This number has been on the rise for the past eleven consecutive quarters. Most of the nonperforming loans were seen in the eastern coastal region. Such industries as wholesaling, retailing, manufacturing, and credit cards suffered most.

Source: People’s Daily, August 13, 2014

http://finance.people.com.cn/money/n/2014/0813/c218900-25460474.html

Briefings | | August 19, 2014 | Economy/Resources

World Gold Council: Second Quarter Gold Consumption in China Down 52 Percent

People’s Daily recently published an article on gold consumption. The World Gold Council released its gold consumption and demand report, indicating that gold consumption in China, including gold jewelry, gold bars, and coins, for the second quarter of 2014 was 192.5 tons. This represented a 52 percent decrease from the same period in 2013. Second quarter gold jewelry consumption was 144 tons, down 45 percent from the same period in 2013. The Council adjusted the second half of the gold demand in China downward by 10 percent. The article reported that in 2013, international gold prices had dropped 28 percent, the largest drop since 1981. China’s gold consumption soared in 2013. The article said that China had surpassed India and become the largest gold consumption country in the world.

Source: People’s Daily, August 15, 2014
http://finance.people.com.cn/money/n/2014/0815/c218900-25470245.html

Briefings | | August 18, 2014 | Economy/Resources

Guangming Daily: The General Public Is Losing Trust in the Current System

Guangming Daily published an article written by a scholar from the Chinese Academy of Social Sciences. The article stated that the general public is losing trust in the current system and many people may resort to political action or violence when there is conflict. This is having a serious impact on the stability of today’s society. According to the article, some Party officials have become detached and have stepped over to the opposite side of the people; they seek political gain, while depriving the people of the right to speak up and defend their own interests. The article concluded that in order for the government to operate in a healthy manner, it should make a priority of regaining the people’s trust. The article also quoted a survey result which showed that over 40 percent of the public does not trust the work that local governments perform. The top three areas with which people are most dissatisfied include clean government and the anti-corruption effort; the subsidized housing policy for middle to low income groups, and the transparency of government information and work.

Source: Guangming Daily, August 15, 2014
http://theory.gmw.cn/2014-08/15/content_12557030.htm

Briefings | | August 18, 2014 | Government/Politics

Beijing Times: Many Positions for Deputy Provincial Level Officials Yet to Be Filled

China News Service carried an article that Beijing Times had originally published. According to the article, since the 18th National Congress was held in November 2012, over 40 deputy provincial level officials were removed from their posts due to corruption charges. Even though 17 of those positions have since been filled, many still remain vacant. The article said that media reports with announcements about the candidates who filled the positions are also lacking. A scholar told Beijing Times that the central administration is extremely cautious when selecting candidates. The article also suggested that the fact that these positions have not been filled does not appear to have had a major impact on the daily workload as the officials at the next level have picked up some of the work. The article said that the Central Administration would rather leave the positions empty than fill them with someone who is not appropriate. It can thus minimize any additional negative consequences.

Source: China News Service, August 18, 2014
http://www.chinanews.com/gn/2014/08-18/6500839.shtml

Briefings | | August 18, 2014 | Government/Politics

Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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.”