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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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State Media on One Country, Two Systems

China’s two state media, Xinhua and People’s Daily, both published editorials on the white paper titled, “The Practice of the ‘One Country, Two Systems’ Policy in the Hong Kong Special Administrative Region.” China’s State Council issued the white paper on June 10, 2014. 

Xinhua’s editorial stated that, unfortunately, some people in Hong Kong do not understand "one country, two systems" and the Basic Law. “Some incorrect views on economic, social, and political issues are affecting social security, economic development, democracy, and progress in Hong Kong, and are causing problems …” Xinhua further stated that one should always be alert to external forces using Hong Kong to interfere with China’s domestic affairs and should prevent and contain the handful of Hong Kong people who disrupt the implementation of "one country, two systems" in collusion with those external forces. 
People’s Daily emphasized that being patriotic to Mainland China is a basic political requirement for Hong Kong’s self-rule and that Hong Kong must be ruled by those Hong Kong people who are patriotic toward Mainland China. 
Sources: 
Xinhua, June 10, 2014 
http://news.xinhuanet.com/gangao/2014-06/10/c_1111077352.htm 
People’s Daily reprinted by Xinhua, June 11, 2014 
http://news.xinhuanet.com/gangao/2014-06/11/c_126605318.htm
Briefings | | |   Government/Politics

Study Finds China’s Homeownership Rates and Housing Vacancy Rates Are High

On June 10, China’s Southwestern University of Finance and Economics (西南财经大学) released a report showing the results of a study on the country’s housing market. The report showed that, in 2013, the rate for home ownership in China was as high as 90.8 percent. The rate was 95.8 percent for rural homes and 87.0 percent for urban homes. The rate measures the percentage of homes that were owner occupied. The statistics showed the rate was 65 percent in the U.S., 60 percent in Japan, and 63 percent for the entire world. The urban ownership rate for multiple homes, which gauges the percentage of urban families that own multiple homes, was 18.6 percent in 2013, an increase of 2.7 percent over the figure for 2011. In March of 2014, the urban multi-home ownership rate jumped to 21.0 percent.
In 2013, China’s urban housing vacancy rate, the proportion of the homeowner inventory that was vacant for sale, was 18.6 percent, 1.8 percent higher than the rate in 2011. The report estimated that there were 48.98 million vacant homes in urban China. Outside of China, the housing vacancy rate was between 1 percent and 3 percent in the U.S., below 5 percent in Hong Kong, around 9.5 percent in the EU countries, 13.1 percent in Japan, and 17.6 percent in Taiwan.
Interestingly, the vacancy rate for low-end housing, that is, government subsidized low price housing sold to low-income earners, was as high as 23.3 percent. The study also showed that the proportion of ownership of low-end housing is the highest among the top 25 percent of households in terms of income level, while 27.5 percent of the low-end housing owned by the top 25 percent of households is empty. The report concluded that "a serious waste of resources exists and there is a ‘mismatch’ in the allocation of low-end housing."
Source: Beijing Youth Daily, June 11, 2014
http://epaper.ynet.com/html/2014-06/11/content_64516.htm
Briefings | | |   Economy/Resources

Chinese Military Experts Say U.S. reports on China’s Military Developments Show U.S. Anxiety

On June 6, the U.S. Department of Defense released the "2014 Annual Report on Military and Security Developments Involving China." Chinese military experts commented that the report continued the "China threat theory" platitudes and the "Cold War" mentality from previous years. It reflected the United States’ two-pronged strategy of both "contacting" and "guarding against" China; it was filled with "anxiety" about China’s development of its military defenses. 

Zhao Weibin, Colonel from the Research Center of Sino-U.S. Defense Relations at the Academy of Military Sciences, said that the report reflected the United States’ suspicions about China’s strengthening of its defense forces. The U.S. will also use that as an excuse for its own development of information warfare, cyber warfare, and space warfare. 
Zhao said, "As the development of China’s armed forces becomes more diversified, the United States will go from ‘concern’ and ‘worry’ to a state of ‘anxiety’ about China’s military modernization. Through the publication of the report on Chinese military power, the United States aims to damage China’s international image and even demonize China so as to enhance the international community’s concerns and fears about China. The intention to suppress and contain China as part of its global strategy is very clear.” 
Major General Peng Guangqian, Deputy Secretary of the National Security Policy Committee of the China Association of Policy Science, said that the more irresponsible the remarks the United States makes about China’s national defense, the more China should stay calm, quietly pursue peaceful development, and adhere to a defensive national defense policy. "After all, the U.S. provocations will never have a significant effect." 

Source: People’s Daily, June 9, 2014 
http://military.people.com.cn/n/2014/0609/c1011-25120199.html

Briefings | | |   US-China Relations

State Council Explains One Country, Two systems Policy in Hong Kong

On June 10, 2014, the Information Office of the State Council issued a white paper giving China’s explanation of the "one country, two systems" policy in Hong Kong, titled “The Practice of the ‘One Country, Two Systems’ Policy in the Hong Kong Special Administrative Region.”

The white paper explained that the "two systems" means that, within the "one country" the main body of the country practices socialism, Hong Kong and some other regions practice capitalism. “The ‘one country’ is the premise and basis for the ‘two systems,’ and the ‘two systems’ is subordinate to and derived from ‘one country.’ … The main body of the country must practice socialism and that will not change.” 
The white paper further stated that for Hong Kong to retain its capitalist system and enjoy a high degree of autonomy with the "Hong Kong people governing Hong Kong," “Hong Kong must fully respect the socialist system practiced on the mainland in keeping with the ‘one country’ principle and, in particular, the political system and other systems and principles in practice.” The white paper also warned that it is necessary “to stay alert to the attempts of outside forces to use Hong Kong to interfere in China’s domestic affairs and to prevent and deter attempts by a very small group of people who act in collusion with outside forces to interfere with the implementation of ‘one country, two systems’ in Hong Kong.” 

Source: Xinhua, June 10, 2014 
http://news.xinhuanet.com/gangao/2014-06/10/c_1111067166.htm

Briefings | | |   Government/Politics

Global Times: China Can Use the Gun to Solve Territorial Disputes

Global Times, or Huanqiu Shibao, a state newspaper under People’s Daily with a focus on international news, published an article stating that it is perfectly fine for China to "fire a gunshot" when dealing with territory disputes with its neighbors.

The article argued that peaceful development and regional war coexist in the world. "A country should have the right to development, the right to peace, and the right to have a war." "During China’s peaceful rise, to safeguard the sovereignty of its national territory and its ocean rights," China can "selectively choose to use force or peaceful negotiations." There is no need to tie its hand with the notion of "peaceful development."

"China’s renaissance includes economic development, as well as safeguarding its ocean territory and recapturing its lost islands." When the opportunity for recovering its lost territory comes, China should not hesitate to grab it.

Source: Global Times Online, June 10, 2014
http://mil.huanqiu.com/observation/2014-06/5015795.html

Briefings | | |   Government/Politics

White Paper Expresses Beijing’s Determination for Unquestioned Authority over Hong Kong

According to the South China Morning Post, on June 10, 2014, the State Council of the People’s Republic of China issued an unprecedented white paper on the “one country, two systems” issue in Hong Kong. "The white paper on Hong Kong shows Beijing’s determination to maintain control amid the debate over political reform.” “By issuing the paper, Beijing has sought to establish its unquestioned authority over Hong Kong as residents debate the meaning and the flexibility of the ‘one country, two systems’ concept.” It stated, "The high degree of autonomy that Hong Kong has enjoyed is subject to the central government’s authorization. There is no such thing called ‘residual power’ for the special administrative region." It also "warned against ‘outside forces’ using the city to interfere in China’s domestic affairs.”

The paper came 10 days before the “Occupy Central” activities, the activists of which are calling for greater democracy, i.e., calling for an unofficial referendum for the 2017 election of the chief executive.

Sources: South China Morning Post, June 10, 2014
http://www.scmp.com/news/hong-kong/article/1529300/beijing-reasserts-its-total-control-over-hong-kong-white-paper
http://www.scmp.com/news/hong-kong/article/1529528/beijing-issues-white-paper-prove-its-control-amid-reform-debate-hong

Briefings | | |   Government/Politics

Study Times: Hide Our Capabilities and Bide Our Time. No Need to Challenge U.S. Leadership.

On June 9, 2014, Study Times, a journal of the Party School of the Central Committee of the Chinese Communist Party, published an article commenting on President Barack Obama’s recent speech at the U.S. West Point Military Academy in which he discussed the U.S. global leadership role. The article proposed some “soft” strategies in dealing with the U.S. as the world’s leader. Though “China’s national power is increasing rapidly,” “China must remain clear-headed” when facing “flattery.” In the late 1980s and early 1990s, Deng Xiaoping, the former top head of the Chinese Communist Party, said that China should “hide its capabilities and bide its time” and “never take the lead” because it would be too expensive to take the responsibility for the whole world. Today, it is still unnecessary for China to challenge the U.S.’s global leadership position. The United States already has difficulties paying for the huge cost of its international moral responsibilities.

“In this new period of time, China must keep ‘hiding its capabilities and biding its time.’” “When dealing with the United States, China may step back on issues not dealing with principle and use gentleness (or softness) to overcome its power while resolutely defending China’s core interests.”  “For China’s fundamental national interests, China must oppose America’s containment, democratic evolution, and the isolation of China.” China and the U.S. can gain “mutual benefits” economically. In terms of security issues, China can fight against the U.S. without breaking the Sino-US relationship.

Source: Study Times, June 9, 2014

http://www.studytimes.cn/shtml/xxsb/20140609/5194.shtml


 

Briefings | | |   US-China Relations

People’s Daily: Ministry of Commerce Ruled against EU and U.S. Exporters

People’s Daily recently reported that the Chinese Ministry of Commerce announced the results of an anti-dumping investigation it had conducted. The Ministry of Commerce announced that the sale of tetrachloroethene exported to China and originally produced in the European Union and the United States is considered illegal dumping. The ruling was considered final. China’s domestic vendors suffered substantial damage as a result of the dumping. The EU and the U.S. companies named in the Ministry’s ruling will be charged anti-dumping duties based on the scale of their dumping activities. According to the announcement, the case was established on May 31, 2013. And it took a year to reach its conclusion. Tetrachloroethene is a colorless chlorocarbon liquid widely used for dry cleaning of fabrics.
Source: People’s Daily, June 30, 2014
http://finance.people.com.cn/n/2014/0603/c1004-25097799.html
Briefings | | |   Economy/Resources