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

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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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Jin Canrong: A Weak U.S. President Is Not Good for Sino-U.S. Relations

While talking to a reporter from the Global Times about the U.S. political situation and its impact on Sino-U.S. relations, Jin Canrong, Associate Dean of the School of International Studies, Renmin University of China, analyzed the poor economic situation in the United States. In his analysis, Jin said that this situation is a very important reason for the escalation of the American political struggle, as it has led the voters of each party to become more extreme. In addition, psychologically, the Republicans do not accept a minority president. As for the national decline of the U.S, as reflected in the worries that appear in the media, it is mostly due to objective reasons. China’s rise places the U.S. influence in a position of relative decline. However, it is also undeniable that Obama is personally to blame for the situation. Some of his policies often sound good but are unenforceable. This places the U.S. on a sliding trajectory. For [the interest of] China, it is better that the United States has a relatively strong president. In such a condition, it is more likely for cooperation between the two countries to be carried out and for agreements to be executed. Otherwise negotiations might not make sense. Republicans may not really sue Obama, but it would embarrass Obama and make him more vulnerable and weaker. This is not a good thing in terms of Sino-U.S. relations. 

Source: Global Times, August 1, 2014 
 http://world.huanqiu.com/exclusive/2014-08/5092779.html
Briefings | | |   US-China Relations

In the Economic Downturn, Local Governments Increase Tax and Fines

According to Xinhua, the Ministry of Finance recently released statistics showing that China’s national revenue increased by 8.8 percent in the first 6 months of 2014, as compared to the same period in 2013. Of the national revenue increase, tax revenue grew by 8.5 percent and non-tax revenue by 11.1 percent. The national GDP increased by 7.4 percent. 

According to Zhou Tianyong, an official from the Chinese Communist Party Central Party School, the tax rate was 36 percent in 2013, but was increased to 44 percent in the first 6 months of 2014, an increase of 8 percentage points. This increase occurred in spite of slower GDP growth, slower consumption and investment growth, and a negative growth in exports. 
Zhou asked, “What does this tell us? Local governments are increasing taxes and fees right in the middle of the economic downturn. It is, in fact, a fiscal mechanism of local governments based on fines and tax increases.” 
 Source: Xinhua, July 30, 2014 
http://www.js.xinhuanet.com/2014-07/30/c_1111858664.htm
Briefings | | |   Economy/Resources

Zeng Qinghong’s Niece Said to Be Involved in Zhou’s Case

Zeng Qinghong is a retired member of the Politburo Standing Committee of the Communist Party of China, China’s highest leadership council. Between 2002 and 2007, he was a top-ranking member of the Secretariat of the Central Committee. From 2003 to 2008, he also served as the Vice-President of the People’s Republic of China. He is a close ally of then-general secretary Jiang Zemin. Since the fall of security tsar Zhou Yongkang, rumors about Zeng have been surfacing.

On Aug. 1, 2013, a wealthy Sichuan businessman Wu Bing (吴兵), who had close business ties with Zhou Yongkang’s son Zhou Bin, was put in official custody. Wu Bing owned Zhongxu Holding Co., Ltd. (中旭投资公司), which holds shares of stock in Fantasia Chengdu (花样年成都), a corporate subsidiary of Fantasia Holding Group Co., Ltd. (花样年控股), which was founded by Zeng Baobao, Zeng Qinghong’s niece. According to its website, "Founded in 1998, Fantasia was successfully listed on the main board of the Hong Kong Stock Exchange in November 2009 under the stock code ‘1777.’ Its assets amounted to over RMB30 billion (US$4.86 billion)." In the early years, Fantasia Chengdu also worked with Zhongxu to create a Sichuan based joint venture. Sources in mainland China told Apple Daily that the authorities took Zeng Baobao away months ago to assist in the investigation of Zhou.

Because of the close relationship between Zeng and Zhou’s family, as early as May this year, there was speculation that Zeng Qinghong will be the next tiger that Xi Jinping will take down. Zeng Qinghong’s latest public appearance was on May 14 of this year. He visited an art museum in Shanghai, accompanied by Shanghai’s head of the Chinese Communist Party’s Central Committee, Han Zheng.

Source: Apple Daily, July 31, 2014
http://hk.apple.nextmedia.com/news/first/20140731/18817574

Briefings | | |   Government/Politics

People’s Daily: Profoundly Comprehend and Grasp The Great Struggles in the New Era

People’s Daily published an article that explained “The Great Struggles in the New Era.” The author, Han Qingxiang, is Deputy Superintendent of Education and Professor of the Central Party School. The article stated, “Our [Communist] Party’s task is that ‘[we] must prepare for great struggles with many new historical features.’ This is based on the scientific judgment of a series of major challenges, trials, and dangers that our Party faces at this stage.” 

The article listed the following forms of “the great struggles” that the Chinese Communist Party currently faces:　　 
The first is the competition for resources. The second is the currency war. On the issue of the statehood that is being established, the United States and other Western powers pay special attention to financial strength; they strongly defend their world dominance with their own countries’ or regional currencies. It is an indisputable fact that, after the 2008 international financial crisis, some Western countries tried to suppress the renminbi. Research shows that currently some Western countries continuously stir up trouble in our neighboring countries. One of the main purposes in doing so is to stimulate money flowing to the hegemonic countries. The third great struggle is to grab the market. The fourth is the ideological struggle. The countries involved in power politics and hegemony intend to fight a "war of no smoke" with our country. They use "freedom, democracy and human rights" as their banner to penetrate our country ideologically. Fifth is the conflict over territories. Sixth is the anti-corruption struggle. Seventh is the struggle over cyberspace. The competition for users between “angels" and "devils" in the cyber world has become increasingly prominent. The struggle in the real world is also reflected in the cyber world. Eighth is the fight against ethnic separatism. Our country is a multi-ethnic country. Western hostile forces never give up the thought of sabotaging our country. They often stir up all kinds of trouble in the country, create ethnic rifts, and engage in ethnic separatism. 
Source: People’s Daily, July 23, 2014 
http://theory.people.com.cn/n/2014/0723/c40531-25323333.html
http://www.qstheory.cn/zhuanqu/zywz/2014-07/23/c_1111748748.htm
Briefings | | |   Government/Politics

Security for Public Transportation in Beijing Is at Its Highest Level

Hours after the announcement that Zhou Yongkang was arrested, Xinhua reported that Beijing elevated the security level of its public transportation to the highest level. Anyone who refused to accept a security inspection would face penalties. 

According to Xinhua, each security checkpoint at an underground subway and at suburban railways is manned with four or five security personnel. Each station has security personnel providing on-site inspections. Security inspections are conducted every 15 to 20 minutes for the key parts of the subway such as trash bins. Around the clock, every bag is subject to a security check and whenever there is any suspicion, there will be a thorough security check. Security officers are conducting security checks on passengers at the bus stations and in the bus compartments. At the long distance bus stations, the recording of incoming passengers and the searches of incoming cargos has been tightened. 
Source: Xinhua, July 29, 2014 
http://news.xinhuanet.com/local/2014-07/29/c_1111852903.htm
Briefings | | |   Government/Politics

China Conducted Its Third Anti-Ballistic Missile Test

A China Review News article reported that, on July 23, 2014, China conducted an Anti-Ballistic Missile (ABM) test. This is the third time that China has conducted such a test. The test showed that China has made advancements in a number areas of ABM technology, including information processing, detection and warning, weapon interception, weapon transfer, accuracy of guidance, and speed of response.

China conducted two previous ground-based mid-course missile interception tests, one in January 2010 and one in January 2013. According to military expert Shao Yongling, this new test was, most likely, a ground-based terminal phase missile interception test. China is moving towards deploying this weaponry in the military.

Source: China Review News, July 26, 2014
http://hk.crntt.com/doc/1033/0/7/6/103307619.html?coluid=4&kindid=16&docid=103307619&mdate=0726182948

Briefings | | |   Defense/Military

People’s Daily: Zhou Yongkang Is Down; More to Go

Xinhua published a short announcement that Zhou Yongkang, former member of the Chinese Communist Party (CCP) Politburo Standing Committee and former head of the Political and Legal Affairs Committee, was taken down by the Central Commission for Discipline Inspection (CCDI). This is the first time in the past 25 years that a Politburo Standing Committee member has been taken down publically.

After Xinhua’s announcement, People’s Daily Online published an article titled “People’s Daily Online Commentary: Hunting Down the ‘Big Tiger’ Zhou Yongkang Is Not the End of the Anti-Corruption Work.” The article stated, “There is no end point for tightening the Party’s discipline. Nor will the anti-corruption campaign stop. Hunting down Zhou Yongkang is definitely not the end of the anti-corruption [work]. It is a phase [of the work]. Whoever is corrupt will be punished next, in the same way.”

This article was later removed from the People’s Daily website. However, the link is still available in Google search results. A copy of the article is available on NetEase.

Sources:
1. Xinhua, July 29, 2014
http://news.xinhuanet.com/politics/2014-07/29/c_1111853756.htm
2. NetEast, July 29, 2014
http://news.163.com/14/0729/19/A2BGVE0C00014JB6.html

Briefings | | |   Government/Politics

Boxun: Flight Cancellations and Military Drills Related to Zhou Yongkang Takedown

According to Boxun on July 30, 2014, the recent unusual cancellation of the majority of flights between Beijing and Shanghai without advance warning, the military drills over the East China Sea, and the Air Traffic Control’s announcement about a large number of civil aviation flight cancellations on July 30 are all related to Zhou Yongkang’s takedown. Zhou Yongkang was a former Politburo Standing Committee member of the Chinese Communist Party and the former domestic security chief. On July 30, the Central Commission for Discipline Inspection of the CCP announced that Zhou was under investigation for "serious disciplinary violations."

Boxun said that military drills were preparation for deterring the possible bounce back of Zhou Yongkang and his supporters and the large number of civil aircraft cancelations was done in order to prevent officials from fleeing. 

Source: Boxun, July 30, 2014
http://boxun.com/news/gb/china/2014/07/201407300558.shtml#.U9kjF86TKSp

Briefings | | |   Government/Politics