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China’s Agricultural Population May Decline to 10 Percent

According to Ministry of Housing and Urban-Rural Development, China‘s agricultural population may decline to about 10 percent.  Currently, about 40 percent of China’s population is engaged in agriculture.

Zhao Hui, an official from the Ministry of Housing and Urban-Rural Development, stated in an interview that as urbanization continues, fewer and fewer people will engage in farming. It is likely that the agricultural population will drop to about 10 percent of the total population. The land used for rural development, however, is about 3.5 times the land used for urban development. That is, it is 70 percent of the total land for development is used for rural development. To avoid having 10 percent of the population use 70 percent of the land, Zhao urged that China should have breakthrough in the institutional mechanisms to allow a rational allocation and flow of population and resources.  
Source: Beijing Business Today reprinted by Xinhua, June 6, 2014 
http://news.xinhuanet.com/2014-06/06/c_126584660.htm

China’s 2013 Gold Production Topped the World for the Seventh Year

People’s Daily reported that China has been the world’s largest gold producer for seven years in a row. In 2013, its gold output reached 428.16 tons. According to the president of China’s Gold Association, "China’s 2013 gold production increased by 6.23% over last year, a new historic record."

As of the end of 2012, China’s gold reserves of 8,196.24 tons ranked second in the world. In addition, for the first time, China’s gold consumption, which was 1176.40 tons in 2013, jumped to world’s top spot. According to an official from the Ministry of Industry and Information Technology, "For the first time, China’s gold consumption has surpassed India. With an increase of 41.3 percent over last year, China has become the world’s largest gold consumer." In 2013, China’s gold consumption was about 27 percent of the global consumption of physical gold.

Source: People’s Daily Online, June 5, 2014
http://finance.people.com.cn/n/2014/0605/c1004-25105841.html

Tsinghua Professor: Maximally Increase Nuclear Deterrence to Deal with the Threat of U.S. and Japan

Chu Shulong, director of the International Strategy and Development Institute at Tsinghua University, wrote an article for Global Times, a division of People’s Daily, calling for China to maximally increase its nuclear deterrence against the U.S. and Japan. 

The article said, “Recently, leaders and senior officials from Japan and the U.S. have continued to distort the facts, stir up trouble, brazenly criticize, accuse, attack, and abusively smear China. The manner and rhetoric lack the very basic politeness. They look like they are a bit hysterical and have the ultimate madness.” 
“Since they have common interests in restraining, balancing, and containing China, Japan and the U.S. mutually cooperate and echo each other [in attacking China]. China has no choice but to resolutely fight back.” 
“Now that Japan and the U.S. choose provocation and confrontation, China can only undo them as they did unto us. The whole country should act like our military, strongly fighting back against the Japan-U.S.’s attacks, slander, confrontation and provocation; we should stop using those channels that have no real contents and results, such as visits, dialogues, ‘consultation,’ and ‘mechanisms.’ On issues such as North Korea, Iran, Syria, climate change, UN affairs, and other regional and international issues, we must make our decisions based on the merits, instead of the wishes and ‘requirements’ of the U.S. In the shortest possible time, we must make up for the insufficiency in our sea and air forces and enhance our readiness to respond to Japan and the U.S., who may provoke a conflict in the western Pacific sea and air. At the same time, [we] should also maximally increase the strategic deterrent capability of our missiles and nuclear weapons, in order to defend against the U.S.’ threats and blackmail on a larger scale.” 

Source: People’s Daily, June 4, 2014 
http://military.people.com.cn/n/2014/0604/c1011-25100384.html

Qiushi: Xi Jinping’s Diplomacy Strategy for the Communist Party

On June 3, 2014, Qiushi published a commentary by Wang Jiarui, director of the International Department of the Central Committee of the Communist Party of China. The commentary explained Xi Jinping’s strategy of diplomacy for the Party. 

Wang wrote that the Party’s relationship with political parties is an important part of the overall diplomacy of the State. At present, the Communist Party has established a relationship with over 600 political parties and organizations in over 180 countries and regions. Communications with the leaders of these political parties, who are considered the sources of government policy and representatives of public opinion in these countries, show characteristics of high-level exchanges, preventive diplomacy, strategic exchanges, and far-reaching impact. 

Wang asserted that, as long as they are friendly to China, the Communist Party should pursue a relationship with them, whether it is the ruling party or an opposition party, a political organization or a think tank, media or a well-known private figure, in a country where China has no diplomatic relations or where there is no political party. Such a pursuit should be carried out with perseverance in order to cultivate friends who truly know China. 
Source: Qiushi, June 3, 2014 
http://www.qstheory.cn/zhuanqu/zywz/2014-06/03/c_1110958638.htm

China’s Local Governments Are Deep in Debt

China Review News reported that the level of debt that China’s local governments have reached is unsustainably high. According to the China’s National Audit Office, by June 2013, local governments had 10.88 trillion yuan (US$1.78 trillion) in debt obligations, 2.66 trillion yuan (US$429 billion) in debt for which they have provided guarantees, and 4.34 trillion yuan (US$711 billion) in debt for which they bear certain bailout responsibilities. The total is close to 18 trillion yuan (US$3 trillion).

The peak period of the debt payback, which is from 2014 to 2017, is close at hand. However, so far, local governments have put up a total of 320 billion yuan (US$52 billion) as the reserve to pay off the debt.

Facing the mounting pressure of a local debt crisis, in an attempt to resolve this problem, the State Council approved ten local governments to issue local bonds. The ten governments include Shanghai, Zhejiang Province, Ningxia Hui Autonomous Region, and Qingdao City in Shandong Province.

Source: China Review News, May 26, 2014
http://hk.crntt.com/doc/1032/0/4/8/103204872.html?coluid=53&kindid=0&docid=103204872&mdate=0526070321

Study Times: Recent Trends in News Release Reform

Study Times published an article summarizing recent trends in the Chinese government’s efforts to manage public opinion and magnify the voice of the authorities, especially in the implementation of regularly issued official news releases. The Third Plenary Session of the 18th Central Committee of the Chinese Communist Party demanded this "move forward in the institutionalization of news releases."

First, the institution of issuing official news releases, which started in 2003 at the level of central and provincial governments, is expanding to lower level and grass roots governments.

Second, the media and the public do not fully grasp the official news releases. The article suggested that the official news should be connected to social issues that garner public attention.

Third, the official news releases now take multiple formats and adapt to different situations. In addition to regular press conferences, there are also web releases, exclusive interviews, news briefings, news conferences at the event location, and increases in the Q&A portion.

Finally, according to Xi Jinping’s speech given to provincial level officials in the Central Party School in 2009, leading officials at different levels are now required to interact with the media and leading cadres should "improve their ability to deal with the media."
      
Source: Study Times, June 2, 2014
http://www.studytimes.cn/shtml/xxsb/20140602/5140.shtml

Study Times: CICA’s Geopolitical and Geo-economic Opportunities for China

Study Times published an article on the significance of the recent Conference on Interaction and Confidence Building Measures in Asia (CICA). The article mentioned several points.

"In 2013, China’s contribution to the world’s economic growth came close to 30 percent. Its trade with neighboring countries reached US$1.3 trillion, more than the total of the Sino-EU and the Sino-U.S. trade. For example, Sino-Russian trade amounted to nearly US$90 billion. China has become the largest trading partner for and an important investor in most CICA member states."

"China’s desire to ‘go out’ has become increasingly stronger. In recent years it has also needed to seek more international cooperation in areas such as energy and security. As Russia’s excessive dependence on energy and raw material has not fundamentally changed, and as international political factors constrain its own economic development, Russia is moving to strengthen economic and trade cooperation with China and other Asia-Pacific countries. On May 22, the US$400 billion gas deal between China and Russia highlighted the desire and sincerity for bilateral cooperation."

"Due to the impact of the South China Sea territorial disputes and the Diaoyu Islands issue, the U.S.’s military and political ‘return to Asia,’ the TPP (Trans-Pacific Partnership), the TTIP (Transatlantic Trade and Investment Partnership), and the PSA (Plurilateral Services Agreement) that have altered global trade patterns, China’s eastward ‘opening-up’ situation faces a serious challenge, with its strategic space being threatened. At the same time, Russia and Central Asian countries’ willingness to look toward the East and other Asian countries’ willingness to ‘hook’ up with China’s economic engine continue to grow. In addition, China has no territorial disputes with Russia or with Central Asian countries. The common strategic interests in the economy and security allow an easier consensus and a mutually beneficial cooperation. Therefore the ‘open-up to the West’ strategy is likely to stand side by side with the original ‘open-up to the East’ strategy."

"Geopolitical wise, there are two routes in the open-up to the west strategy. The first route, also known as the "Maritime Silk Road," is from inland China, via southwest border provinces and southern coastal province, then Southeast Asia and South Asia countries, to West Asia and even Africa. This route is essential to our energy security and expansion in emerging markets. Another route, or "Silk Road," starts from China’s economic hubs such as the Yangtze River Delta, Beijing, Tianjin and the Hebei area, via the vast central and western regions, and via the Central Asian countries to Russia. If the international political circumstances permit, the route can extend to EU countries, forming a "Silk Road" economic corridor across Europe and Asia. Among them, Russia and Central Asian countries are energy and resource powers; China is the world’s second largest economy, the country with the largest foreign exchange reserves and the largest country in trade in goods; the EU is the world’s traditional economic and technological center. Along this route, these countries have common interests and mutual needs. The EU has so far failed to get rid of its debt crisis amid its weak recovery. EU countries are obviously willing to seek cooperation from China in the East, while they also have a considerable degree of reliance on Russian energy and resources."

Source: Study Times, June 2, 2014
http://www.studytimes.cn/shtml/xxsb/20140602/5128.shtml

Fu Ying: Provocative Neighbors Caused the Recent Troubles at Sea

People’s Daily recently reported that Fu Ying, the Chairperson of the National People’s Congress Foreign Affairs Committee, appeared on a TV program where she commented on a number of regional issues. Fu suggested that all issues in the seas around China were caused by the provocative behavior demonstrated by China’s neighboring countries. She especially mentioned that Japan faces the question of whether it will continue on the path of being a peaceful nation or not. Fu suggested that China will not give up on peaceful resolutions. However, “strong responses” are necessary when facing challenges. This position is also needed to maintain the peaceful and stable order in the entire region. She said the position the United States takes on these regional issues will ultimately dictate how the Chinese people view the U.S. and its allies. 
Source: People’s Daily, May 30, 2014
http://world.people.com.cn/n/2014/0531/c1002-25088543.html