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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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Local Governments Are Increasing Their Investments

China Enterprise News reported that, in spite of the central government’s efforts, local governments are increasing their expenditures and banks are funding the local governments through financial management products. 

According to the National Bureau of Statistics, none of the provinces, except Anhui, reached their GDP goals in the first quarter of 2014. Heilongjiang Province had the lowest GDP growth rate. At 4.1 percent the rate was less than half of the estimate. As of the present, the provinces of Guangdong, Hainan, Hebei, Heilongjiang, and Guizhou, as well as Tianjin City, have announced grand investment plans. When added together, local government investments total more than 10 trillion yuan. 
With few local projects eligible for central government funding, the sources of funds for these grand investment plans remains to be resolved. Tight bank credit and a sluggish land market do not offer any hope. Even the recent pilot program that allows local governments to issue and service their own bonds cannot cover the gap. The 14 billion yuan in bonds that Guangdong plans to issue is miniscule compared to the investment plan of 3.67 trillion yuan it announced on April 9, 2014. 
However, according to sources from banks, the banks have been funneling funds to local governments through financial management products such as loan trusts. For the local governments, the cost of these funds is higher than regular bank loans. However, the approval process is not subject to policy changes and, once approved, the proceeds are transferred promptly to the local governments. 
Source: China Enterprise News reprinted by Xinhua, July 15, 2014 
http://jjckb.xinhuanet.com/invest/2014-07/15/content_512790.htm
Briefings | | |   Economy/Resources

State Internet Information Office Crack Down on Cyber Rumors

The State Internet Information Office (SIIO), the government agency overseeing China’s Internet activities, is investigating a number of websites for spreading rumors. Thirty-one websites have been shut down.
According to SIIO, "Recently some unruly individuals have used the Internet to maliciously fabricate and spread rumors of an evil nature. The stories were serious misrepresentations of the facts. Such behavior constitutes a serious breach of public morality and a disruption of cyberspace and the social order. Some mismanaged websites allowed such rumors to spread, resulting in adverse effects."
It is reported that SIIO is launching a nationwide crackdown on Internet rumors and rumormongering behavior. It will rely on reports from Internet users and its own leads to investigate websites and Internet user accounts, in conjunction with the pursuit by the public security authorities.
Source: Xinhua, July 17, 2014
http://news.xinhuanet.com/politics/2014-07/17/c_1111673632.htm
Briefings | | |   Information/Technology

PBoC Dedicates Effort to Cleaning Up Renminbi Bills Having Falun Gong Information

A source inside China revealed a document to Chinascope. The document shows that People’s Bank of China (PBoC) has gotten a new task these days, a task that has nothing to do with its banking functions. To break the government’s prohibition and ban on the practice of Falun Gong, Falun Gong members in China have been printing their information on renminbi bills, which makes that information much harder to monitor and remove. In a document (No.75 [2014]) labeled as classified and extremely urgent, PBoC will allocate dedicated efforts to accomplish the task of dealing with what it calls "reactionary propaganda bills." Below is the translation of a summary of the document: 

To crack down on activities of Falun Gong members’ producing and circulating reactionary propaganda bills and to check the growth and spread of Falun Gong reactionary propaganda bills, based on arrangements of the relevant departments of the central [government or the central Chinese Communist Party Committee], the People’s Bank of China (PBoC) has decided to launch a task across the entire country, dedicated to rectifying Falun Gong reactionary propaganda bills (henceforth referred to as the Dedicated Task). 
Goal: Through this Dedicated Task, the PBoC and financial institutions in the banking industry will play their full functionary roles, further enhance prevention and strengthen the crackdown, increase mobilization, clear up recycle and exchange channels, effectively cut off the chains of circulation of reactionary propaganda bills, gradually establish a long-term mechanism, and squeeze the space of reactionary propaganda activities that Falun Gong engages in via the use of renminbi bills. 
Major Measures: (1) Through joint human and equipment prevention, prevent financial institutions in the banking industry from circulating reactionary propaganda bills in society. (2) Improve relevant business training and become more sensitive politically. Make good use of the depository and exchange windows for recycling damaged renminbi. Have a presence at farmers’ markets, stores and supermarkets, and key public transportation terminals where people and cash flows are intense to conduct deposit and exchange services dedicated to this task. (3) Establish normal and thorough exchange and information sharing mechanisms with financial institutions and cooperate with relevant law enforcement agencies. (4) Launch broad propaganda to enhance public awareness of caring for renminbi and proactive prevention. Remind clients that if they have renminbi bills that have printed words or written words on them, or are damaged or smeared, they can exchange these bills at the banks retail outlets free of charge.

[According to Wikidedia and other sources, Falun Gong writings on such bills include: "Falun Dafa is good;" and "Heaven will destroy the Chinese Coummunist Party. Those who resign will be saved"]

 
Source: Chinascope.
Briefings | | |   Government/Politics

Government Think Tank: China Faces Extended Slow Growth

Cai Fang, Director of the Institute of Population and Labor Economics under the Chinese Academy of Social Sciences, published to rebuttal to the prediction that the bubble of the Chinese economy may burst. He also admitted that China’s economy is in for a period of slow growth. 

Cai wrote that, over the years, there have been significant changes in the demographic structure of China’s population. After the growth rate of the population between 15 and 59 peaked in 2010, it then slowed down and has since fallen. On the other hand, the dependency ratio is increasing. This fundamental demographic change has led to a general shortage of workers, persistent wage increases, a substantial surge in manufacturing costs, and the disappearance of China’s traditional competitive advantage. More importantly, because there is no unlimited supply of labor, the returns on capital have been decreasing. The returns on investment have fallen considerably. The gradual reduction of surplus agricultural labor will also slow the labor reallocation of resources, thereby reducing any improvement in productivity. Therefore, China is expected to experience a period of slow growth in its economy. 
Source: Qiushi, July 15, 2014 
http://www.qstheory.cn/dukan/qs/2014-07/15/c_1111595037.htm
Briefings | | |   Economy/Resources

Study Times: Developing the Party in the Non-Public Sector

Study Times published an article on further developing the Chinese Communist Party (CCP) in non-public economic entities. The article highlighted a few areas on which to focus. The first area it discussed was the leadership structure. The article pointed out that nearly one third of the provinces in China have used the Provincial Industry and Commerce Association as a vehicle to establish Party committees. They can be set up and given the responsibility to oversee the Party’s development in the non-public sector. The second area was the enterprise’s role as a provider of capital. Business owners have, to a large extent, influenced the progress of the CCP’s development in their enterprises. The CCP should absorb personnel into the Party, strengthen people’s belief in the socialist path with Chinese characteristics, and arrange political positions for them as a reward. Finally, the article emphasized the role of the Chamber of Commerce. The Chamber of Commerce has become more and more important in acting as the CCP’s base for CCP members in small businesses and in educating investors to support the Party’s development in their private businesses.

Source: Study Times, July 7, 2014
http://www.studytimes.cn/shtml/xxsb/20140707/5703.shtml

Briefings | | |   Government/Politics

China’s New Think Tank Model Different from the Models from the Former Soviet Union and the U.S.

On July 14, Study Times, a journal of the Party School of the Central Committee of the Chinese Communist Party, published an article on developing China’s new think tanks with Chinese characteristics. The 3rd Plenary Session of the 18th Central Committee of the Chinese Communist Party (Nov. 9 – 12, 2013, in Beijing) stressed the need to “strengthen the Chinese characteristics of new think tanks and build a sound decision-making advisory system.” According to the article, the model for China’s new think tanks with Chinese characteristics is different from the "Soviet Union model," which had a close relationship to the government and gave advice to the former Soviet Union government directly, using its research results; it is also different from the "American model," which is independent from the U.S. government.

According to the article, China’s think tanks are diversified and complementary. “Providing service to the decision makers is fundamental and giving moderately advanced predictions is the key.” Think tanks help to improve the quality of how public policy performs in China and they enhance China’s international influence. To ensure a think tanks’ high quality service, the article suggests building up four mechanisms: “the Incentive mechanism, the competitive mechanism, the cooperation mechanism, and the oversight/supervision mechanism.”

Source: Study Times, July 14, 2014
http://www.studytimes.cn/shtml/xxsb/20140714/5762.shtml
http://www.qstheory.cn/politics/2014-07/14/c_1111601002.htm

Briefings | | |   Government/Politics

Huanqiu Editorial: Any Country That Is Hostile to China Will Have to Pay a Huge Price”

On July 14, 2014, Huanqiu (the Chinese edition of Global Times) published an editorial asserting that the U.S. has sided with Vietnam and the Philippines against China in the South China Sea disputes. The editorial was in response to the U.S. proposal on July 11 that Asian nations should freeze building new outposts or expanding existing ones in the South China Sea to prevent more tensions and conflicts.

The Huanqiu editorial asked the United States to stay away from the South China Sea disputes. “After all, the South China Sea is not the Caribbean. China has the capability to ensure there is a difference between these two seas.” The editorial suggested that China give the United States some unexpected lessons so as to “let the U.S. swallow its grievances like a dummy, without being able to speak out for himself.” The editorial continued, “China must be self-confident!”  “Any country that is hostile to China will have to pay a huge price; it must be very clear on this point.” 

Source: Huanqiu, July 14, 2014
http://opinion.huanqiu.com/editorial/2014-07/5061932.html

Briefings | | |   US-China Relations

Tianhe One Supercomputer Has Been Collecting Dust for a Year

The well-known Chinese news site Sina recently reported that the award-winning Chinese supercomputer Tianhe One has been sitting in the building of its home site for a year without even being powered on. In 2010, with its speed of 2,750 trillion basic calculations per second, the Tianhe One won the title of the fastest supercomputer in the world. However, in its permanent new home in Changsha City, Hunan Province, different parties have been engaging in major disputes on land ownership, operating costs,  and political fights. After one year of delay, the government of Hunan Province finally pushed through the completion of the construction of the hosting site and powered on the machine for a test run. The current top-speed supercomputer in the world, the Tianhe Two (located elsewhere) is seeing a 34 percent utilization of its computing power.
Source: Sina, July 11, 2014
http://finance.sina.com/bg/tech/sinacn/20140711/01501075483.html
Briefings | | |   Information/Technology