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Party Organization Department’s Report on the Process for Selecting Candidates for Party Cadres

The Party Construction Research Center, which is part of the Organization Department, recently published a research report showing the results of a survey that was conducted in 2013. It was based on 3,045 questionnaires collected from 16 provinces and districts. The topic was improving the credibility of the process for selecting candidates for Party cadres. Those surveyed expressed the following concerns regarding the selection process: the leader has the final say; the election process is simply a formality; illegitimate practices are often serious; and the evaluation criteria lack accuracy.

Source: People’s Daily, July 6, 2014
http://opinion.people.com.cn/n/2014/0706/c1003-25243492.html

Global Times: Radio Free Asia Collaborates with East Turkestan to Promote Anti-China Ideology

Xinhua carried an article which was originally published in Global Times. The article named a few western media and stated that they assisted the East Turkestan Islamic Movement, spread rumors, and ultimately promoted violent ideology in China. The article also mentioned that the social media in the West such as YouTube, iTunes, Facebook, Google, and Twitter also contain programs that circulate separatist ideology. The majority of the article’s contents listed evidence proving how Radio Free Asia used its coverage of the history, culture, and current situation in East Turkestan to demonstrate its true intention of promoting “anti-China and separatist ideology.” The article said that Radio Free Asia receives funding from the U.S. government. Its voice has become the outlet for East Turkestan separatism. In addition to Radio Free Asia, the article also named Voice of America and BBC Chinese, claiming they use their Uyghur language programs to instigate violence. As for Radio France International and Deutsche Welle, the article said that, due to a shortage of funding and out of concern for upsetting China, the media in European countries are unlikely to have Uyghur language programs. However, Deutsche Welle’s Chinese language program is obviously biased when it covers the violent crimes that East Turkestan commits in China.

Source: Xinhua, July 5, 2014
http://news.xinhuanet.com/politics/2014-07/05/c_1111468669.htm

China’s Growing Dependence on Foreign Energy

A Chinese Academy of Social Science report, "World Energy and the Outlook for China, 2013 – 2014" made an assessment that China’s dependence on foreign energy will go up from the current 9 percent to 11 percent in 2015 and 26 percent in 2020. 
Oil. At present, the three largest countries from which China imports oil are Saudi Arabia, Angola, and Iran. Several years ago, in 2010, imports from these three countries accounted for 40 percent of the total oil imports. Geographically, the Middle East accounted for 50.1 percent of total Chinese oil imports, Africa 30.2 percent, followed by Latin America, the Commonwealth of Independent States, and Southeast Asia. Dependence on foreign oil is expected to grow from 55 percent in 2011 to 60 percent in 2015.
Iron ore. China is the world’s largest importer of iron ore. Its total imports of up to 440 million tons in 2008 accounted for 52 percent of the world’s seaborne iron ore. The sources are concentrated in a few countries: Australia, Brazil, and India.
Natural gas. More than 80 percent of China’s natural gas imports are from Australia. The dependence on foreign natural gas will increase from 19 percent today to 35 percent by 2015, and 40 percent by 2020.
Copper ore. China currently accounts for 17 percent of global copper consumption. It is the world’s largest consumer of copper and importer of copper concentrate.
Bauxite. Chinese bauxite resources are not scarce, but in recent years the country launched a large number of electrolytic aluminum projects, resulting in a surge in consumption. China is becoming a net exporter of bauxite.
Coal. Since 2002, Chinese coal imports have increased rapidly. In 2011, China surpassed Japan to become the world’s largest coal importer. The major coal exporters to China include South Africa, the USA, Canada, Colombia, Australia, Indonesia, Mongolia, Vietnam, and Russia.
Source: Guangming Daily, July 3, 2014
http://theory.gmw.cn/2014-07/03/content_11821154.htm

Chinese Military Expresses Loyalty to Xi Jinping Following Xu Caihou’s Dismissal

PLA Daily published a front page article reporting that the officials and soldiers from all four key PLA departments: the general staff, the general political department, general logistics, and general armaments; as well as all seven military regions, expressed absolute allegiance to Chairman Xi [Jinping] and pledged firm support of the decision to dismiss retired general Xu Caihou from the Party. The article was also published on the People’s Daily website. 

Xu Caihou was formally vice chairman of the Chinese military commission and in now under investigation for corruption and “severe violation of discipline.” 

Source: PLA Daily, July 2, 2014 
http://youth.chinamil.com.cn/view/2014-07/02/content_6029468.htm http://military.people.com.cn/n/2014/0702/c1011-25227852.html

Local Government Debts Lack Transparency

China Economic Weekly, which is under the State’s People’s Daily, published an article on the fiscal transparency of China’s municipal governments titled, “Where Do Municipal Governments Spend Their Money?” 

According to the article, the Tsinghua Economic, Financial, and Governance Research Center released its “2014 Chinese Municipal Government Research Report on Fiscal Transparency.” The report rated the 2014 fiscal transparency of 289 cities. 
Across-the-board, these cities received low ratings on the release of their government debt statistics. Of the 289 cities, only 14, or 4.84 percent of the total cities, released relevant statistics on their government’ debts. The report noted that two reasons contributed to the low ratings. First, the vast majority of government debts are handled by local governments’ investment and financing platform companies. Local governments do not include these companies’ financials in the operating statement on the State’s capital, nor do they disclose the financials of local State-owned enterprises. Second, a large number of cities have a huge number of outstanding government debts. Consequently, they are not willing to disclose the relevant information. 
Source: People’s Daily, July 1, 2014 
http://finance.people.com.cn/n/2014/0701/c1004-25221526.html 

China Stock: Growing the RMB’s Global Presence

After the global financial crisis, a new trend developed in the world: the establishment of a "currency swap network." The U.S., in particular, established a Dollar Liquidity Swap Line among the U.S. Federal Reserve and the central banks in Europe, Canada, the United Kingdom, Switzerland, and Japan. The U.S. dollar still plays a dominant role.

China Stock published an article suggesting the steps China should take to grow the RMB’s global presence. First, China should participate in the U.S.-dominated “network of bilateral swap lines.” This would allow China to obtain dollars easily when money flows out of China. Second, China should advance the "The Chiang Mai Initiative Multilateralization" mechanism, turning this loose network of bilateral support into a tight multilateral capital rescue mechanism. Third, China should establish an RMB swap funding pool, to support the clearing of the RMB’s swap with other currencies.

Source: China Stock Online, June 26, 2014
http://news.cnstock.com/news/sns_jd/201406/3075560.htm

People’s Daily Commentary: People Who Rule Hong Kong Must Be Chinese Loyalists

People’s Daily published a commentary on the current situation in Hong Kong. The commentary claimed, "From the formation of the idea of ‘one country two systems’ to its implementation, there has been a clear line and standard for ‘Hongkongese to rule Hong Kong.’ That is that the majority of the Hongkongese who rule Hong Kong must be patriots [of China]."

The commentary further stated that "[China’s] re-iterating that patriots are to be the main body of the Hongkongese who rule Hong Kong does not interfere with Hong Kong’s autonomy. Rather, it clarifies the rights and responsibilities, as defined by Hong Kong’s Basic Law, for those who rule Hong Kong. … It is to let all of Hong Kong’s people have a measurement standard in their mind. Only those Hongkongese who are elected [based on this requirement] can accept the supervision by the Central government [of China] and Hong Kong society. … This is in the fundamental interest of the nation [of China] and it is in the fundamental interest of Hong Kong."

Source: People’s Daily, July 2, 2014
http://opinion.people.com.cn/n/2014/0702/c1003-25226140.html

Qiushi on Three Major Conflicts in China

Fang Ning, Dean of the Institute of Political Science of the Chinese Academy of Social Science, wrote an article for Qiushi on the three major conflicts that the Chinese people currently face. One is the conflict between the rich and poor; the second is between employees and employers; and the third is between the general public and government officials. Of these, the greatest concentration is on the conflict between the general public and government officials. The article suggested that the possibility of conflicts evolving into confrontation has been increasing.

Source: Qiushi Theory Online, June 22, 2014
http://www.qstheory.cn/freely/2014-06/22/c_1111254367.htm