Chinascope – Page 760

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

Briefings | | July 2, 2014 | Economy/Resources

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

Briefings | | July 2, 2014 | Government/Politics

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

Briefings | | July 2, 2014 | Government/Politics

Central Bank: Q2 Employment Expectations Hit Three-Year Low

China’s central bank, the People’s Bank of China, recently released a report that showed the results of a survey on customer expectations on employment. According to the report, 12.5 percent of the Chinese residents responding to the survey held an optimistic view of the current job market. 43.8 percent of the sampled population either felt uncertain or found the current employment situation to be “very challenging.” This is the lowest number since the second quarter of 2011. 63 percent of the people surveyed agreed that the current prices for housing are still too high, while 34.2 percent thought they were “acceptable.” The survey also covered bankers, 72 percent of whom said the current currency policies are “appropriate.” Entrepreneurs sampled by the survey mostly (62.2 percent) suggested the economy is performing “normally.” However 36.1 percent of them thought the economy was “cooling down.” The Bank’s Entrepreneur Confidence Index dropped 2.1 percent from the first quarter of this year.

Source: Sina Finance, June 25, 2014

http://finance.sina.com.cn/money/forex/20140625/173919520651.shtml

Briefings | | July 1, 2014 | Economy/Resources

Xi Jinping: The Party and the Government Take Border Security Seriously

The official Chinese Central Government Website recently published a Xinhua report on a speech delivered by President Xi Jinping regarding the importance of land and maritime border security. The audience mmbers listening to the speech were the attendees at the Fifth National Border Security Conference. Chinese Premier Li Keqiang was also present at the conference. In his speech, Xi emphasized that the “top priority” is defending the country’s sovereignty and security. He called for “very carefully planned and organized administration and control over both land and maritime borders.” Xi also required well-organized action to defend China’s rights at sea. He suggested that, given the “new situation,” it is very important for the State Border and Coastal Defense Committee to coordinate the joint efforts performed by the armed forces, the police system, and civilians smoothly.

Source: Chinese Central Government Website, June 27, 2014

http://www.gov.cn/xinwen/2014-06/27/content_2709132.htm

Briefings | | July 1, 2014 | Geo-Strategic Trend

The Minimum Wage Went Up an Average of 14 Percent

Xinhua carried an article that was originally published in Economic Information Daily. According to the article, in the first half of 2014, the minimum wage in 12 provinces and cities went up an average of 14 percent. The Ministry of Human Resources and Social Security will soon be releasing more information. This increase is the lowest in recent years. The article stated that it was 22 percent in 2011; it was 20.2 percent in 2012; and it was 17 percent in 2013. The article also stated that, even though the “Minimum Wage Guideline” declared that the minimum wage increase was supposed to take place once every two years, from 2010 to 2014 the actual wage increases occurred once every 1.2 years.

Source: Xinhua, June 30, 2014
http://news.xinhuanet.com/fortune/2014-06/30/c_1111370014.htm

Briefings | | June 30, 2014 | Economy/Resources

Study Times: Government Should Gain the Discourse Right Quickly in Dealing with Public Emergencies

Study Times published an article written by two members of the Chinese Communist Party Guangxi Committee. The article stated that the Internet presents new challenges for the media to be able to guide public opinion when facing public emergencies. In a number of incidents, the media failed to guide the public correctly, which had a negative impact on economic and social development, as well as on the government’s credibility. The article emphasized that, following an incident, the municipal departments should pay attention to gaining control of the discourse right quickly in order to gain the public’s trust. They should work with credible media to ensure that the public can receive the “official news release” before foreign media and the rumor mill can catch up. The article also mentioned that the municipal departments at all levels should develop a contingency plan in dealing with emergencies and that managers from public relations or related departments should take training classes.

Source: Study Times, June 23, 2014
http://www.studytimes.cn/shtml/xxsb/20140623/5369.shtml

Briefings | | June 30, 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.”