Chinascope – Page 754

China News: Qualcomm Faces Antitrust Investigation in China

China News recently reported that China is conducting an antitrust investigation into the U.S.-based Qualcomm, which is the world’s largest cellphone chip maker. The investigation is focusing on high patent licensing fees and the “handset-based patent pricing model.” Experts in the Chinese cellphone industry have expressed the belief that Qualcomm abused its power of control over its intellectual property by establishing unfair prices and denying competition. Qualcomm holds critical patents that dominate the cellphone chip market and define the wireless communications standard. Based on publicly available data, some lawyers have estimated that, if Qualcomm is found guilty, its total Chinese income, which is half of its global revenue (half of US$20 billion), will be the basis for the fine. There is a good chance that the fine will set a record in Chinese antitrust history.

Source: China News, July 24, 2014

http://finance.chinanews.com/it/2014/07-24/6421681.shtml

Briefings | | July 29, 2014 | Information/Technology

Chinahr.com Published Research Report on College Students’ Top Employment Choices

Xinhua recently published an article about a report that Chinahr.com, the talent search and human resources website, had published titled, “Research Report on College Students’ Top Employment Choices.” The report contained the results of a survey conducted among college students and people who had graduated from college asking about their preferences of employment and pay choices. The results showed that, as of May 2014, 38.9 percent of the seniors graduating from college had not signed an offer yet. The results also showed that, even though 35.9 percent of college students chose State Owned Enterprise as their top employment choice because of the pay benefits and job stability, more of those who had three or more years of work experience expressed a preference for privately owned companies. In the meantime, 18.9 percent of the people who had graduated expressed an interest in owning their own business. That number had gone up from 2.21 percent in 2013.

Source: Xinhua, July 27, 2014
http://news.xinhuanet.com/edu/2014-07/27/c_126800954_2.htm

Briefings | | July 28, 2014 | Information/Technology

Ministry of National Defense: Military Exercises Are Not the Major Cause of Flight Delays

People’s Daily reported that a notice that the the Ministry of National Defense issued stated that the PLA will conduct its annual military exercises along the Southeast coast starting on July 29. According to the Information Office of National Defense, the impact of the military exercises on the commercial flight schedule has been limited and has not been a major cause of the recent flight delays; it was mainly weather conditions that caused these flight delays. [Editor’s note: Signs posted at Shanghai’s two main airports indicated that recent flights had been delayed or cancelled because of an unspecified “other user” of the airspace conducting exercises in the area.]

Source: People’s Daily, July 27, 2014
http://military.people.com.cn/n/2014/0727/c1011-25349596.html

Briefings | | July 28, 2014 | Government/Politics

People’s Daily: Commentary on Intensive Visits That Members of the Standing Committee Made in July

People’s Daily published an article that reported the comments from experts on the intensive visits that members of the Standing Committee of the Political Bureau made to a number of different regions during July. The article said that those visits were an indication that the political bureau is gathering firsthand information to prepare for the upcoming fourth plenary session of the Party’s 18th Central Committee. According to the article, the fact that all the visits they made to these sites included stops at the local manufacturing companies indicated that the members were evaluating the effectiveness of the economic stimulus plan that the central administration had initiated. Meanwhile, the article suggested that the visits to the Ningxia autonomous region and Gansu and Fujian Provinces could indicate that the central administration might speed up of the development of the “Silk Road economic belt and the 21st-century maritime Silk Road” strategy. Lastly the article said the fact that more visits were made to the regions that had minority nationalities was a sign that the central administration intends to improve the living standard in these areas in order to minimize ethnic conflicts.

Source: People’s Daily, July 25, 2014
http://politics.people.com.cn/n/2014/0725/c1026-25344645.html

Briefings | | July 28, 2014 | Government/Politics

Chinese Think Tank: It’s Obvious that U.S. Air-Sea Battle Strategy Is Targeting China

On July 23, the Association of China Strategic Culture Promotion [a “civil” Chinese think tank] issued a "2013 U.S. Military Assessment Report" in Beijing. The report said that the United States plans to develop an "Air-Sea Battle" strategy to meet the challenges of "anti-access and area denial." The report pointed out that "Air-Sea Battle: a military collaboration dealing with the challenge of ‘anti-access and area denial,’" as the first official U.S. document to explain "Air Sea Battle," will have a significant and far-reaching impact in four areas.

First, it will have an impact on the transformation of the U.S. Army.

Second, it will damage the Sino-U.S. strategic relationship of mutual trust. According to the analysis in the report, the U. S. “defense strategy guide" clearly stated that China’s rise broke the balance of power in the Asia-Pacific region and the Chinese military’s "anti-access and area denial" capabilities posed a serious threat to the U.S. military. The intention of the American "Air-Sea Battle" against China is very clear. China cannot help but suspect the sincerity of the U.S.’s cooperation and its true strategic intentions.

Third, it will, under the influence of the overall U.S. military strategy, force its allies to undergo military expansion.

Fourth, it will eventually have a negative impact on the peace and stability in the Asia-Pacific region. This impact will manifest mainly in the following areas: an increase in the U.S. military deployment in the Asia-Pacific region; the expansion of naval and air bases in Guam, Hawaii, and other places; as well as the conduct of several large-scale multinational military exercises.

Source: People’s Daily, July 24, 2014

http://military.people.com.cn/n/2014/0724/c1011-25337744.html

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

Tough Issues for Balance Sheets of Local Governments

In a recent article in China Finance, which Xinhua then reprinted, Ma Jun, the chief economist for China’s central bank, the Bank of China, wrote about the balance sheets of local governments and related issues.

In their preliminary work, most of the local governments completed the balance sheets in accordance with generally accepted international principles. Yet, the process also presented problems unique to China in terms of the scope, valuation methods, and accounting standards. Ma stated that in dealing with these issues, one should first consider the major objective for compiling the balance sheets, which is to help evaluate the debt risks that the local governments face and their future ability to repay these debts.

Specifically, there are three major questions. First, should State-own enterprises be included in the balance sheets and how? Second, should special assets be included in the balance sheets? Special assets include debt-free public infrastructure (such as roads, bridges, and parks), minerals and other natural resources, and cultural assets. Third, should the balance sheets include pension liabilities?

Source: China Finance reprinted by Xinhua, July 18, 2014

http://news.xinhuanet.com/fortune/2014-07/18/c_126768371.htm

Briefings | | July 25, 2014 | Economy/Resources

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.”