Skip to content

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Read More ...

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

Read More ...

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

Read More ...

The CCP’s Performing Arts Troupes in the U.S.

Read More ...

China Securities Journal: Three Major Challenges for China’s Economic Reform

A China Securities Journal article listed three major challenges that severely hinder China’s economic reform:

1. The lack of protection for legitimate property rights. Local governments expropriate farmer’s land, even when the farmers have the proper contracts for using the land. When there is a need to boost the economy, local governments invite companies to invest. Later, when they try to cool down some overheated sectors, the local governments force them to exit the market.

2. The lack of a formal government budget spending process. The top official can, individually, make a decision on spending. At end of the budget year, government agencies rush to spend funds.

3. The lack of measurements for correct performance and of a reward system for government officials and the heads of state-owned enterprises. Their evaluation is linked to short-term economic achievements instead of long-term performance. This induces officials to pursue temporary results while leaving the major burdens for the public to handle in the long run.

Source: China Securities Journal Online, May 13, 2014
http://www.cs.com.cn/sylm/zjyl_1/201405/t20140513_4388241.html

Briefings | | |   Economy/Resources

China Review News: New Countermeasures to Guard Against and Defuse China’s Financial Risks

On May 18, 2014, China Review News published an article discussing China’s rising financial risks. The article suggested “new countermeasures to guard against and defuse these financial risks.” Below are the new countermeasures recommended in the article:

  1. Carry out thorough investigations into China’s financial risks to enable easier management. However, the results of these investigations should not be released to the public so as to prevent any substantial volatility in financial markets.
  2. Develop contingency plans for financial emergencies.
  3. Set up a bank deposit insurance system as soon as possible to stop people from withdrawing all of their money from banks.
  4. Further strengthen supervision over financial businesses.

Source: China Review News, May 18, 2014
http://hk.crntt.com/doc/1031/9/2/4/103192492.html?coluid=53&kindid=0&docid=103192492&mdate=0518071527

Briefings | | |   Economy/Resources

Non-Performing Loans Hit New High

Sina Finance, a popular Chinese financial news site under Sina.com recently reported that the amount of non-performing loans reached RMB 646 billion yuan (US$104 billion) in the first quarter of 2014. That figure represents a record high for the past six years. The scale of defaults has continued to rise for ten quarters in a row. The report expressed the worry that, with the slow-down in the Chinese economy, more and more credit defaults are surfacing. The China Banking Regulatory Commission (CBRC) also stated that the nationwide overall bank credit risk level has been increasing. Bloomberg analyst Rainy Yuan pointed to the quality of assets as the biggest issue that Chinese banks face and to the government’s unwillingness to provide a monetary stimulus policy as a contributor to the worsening situatiion. CBRC is calling on banks to have tighter risk management while preparing for new pressure tests for the sector.
Source: Sina Finance, May 16, 2014
http://finance.sina.com.cn/money/forex/20140516/121419132270.shtml
Briefings | | |   Economy/Resources

People’s Daily: President Xi and President Putin to Meet for Seventh Time in a Year

People’s Daily recently announced that, per the invitation from Chinese President Xi Jinping, Russian President Vladimir Putin will visit China on May 20. This will be the seventh time these two presidents have met since last March. During the visit, the Chinese Navy and the Russian Navy will conduct a joint exercise. Due to the situation in Ukraine, China and Russia will speed up the negotiations on energy deals, while “trade cooperation” will be a primary highlight of the event. It is widely expected that a Russian natural gas supply contract will be signed during Putin’s visit as well as more investment and military deals, although some of them are still being negotiated out of the public’s view. The report expressed the belief that China-Russia cooperation is “deepening.” 
Source: People’s Daily, May 16, 2014
http://world.people.com.cn/n/2014/0516/c1002-25025902.html
Briefings | | |   Geo-Strategic Trend

People’s Daily: Over Ten Thousand People Charged with Corruption

People’s Daily recently reported that the Supreme People’s Procuratorate announced the numbers for corruption-related cases. In the first quarter of 2014, over ten thousand people were charged in over eight thousand criminal cases of corruption. Among these cases, over eighty percent are considered cases that involve major damages. In addition to the corruption cases, over three thousand people were charged in over two thousand cases of malfeasance, more than half of which were cases involving major damages. The number of people charged with corruption increased by nearly twenty percent compared to last year. The number of people charged with malfeasance increased by more than ten percent. The announcement also indicated that a large number of corrupt officials had been planning their final exit strategy to flee to a foreign country. They had been preparing for this exit for many years by transferring money to foreign banks and sending their family members overseas. The Supreme People’s Procuratorate plans to strengthen the efforts involved in overseas investigations. 
Source: People’s Daily, May 5, 2014
http://legal.people.com.cn/n/2014/0515/c42510-25020279.html
Briefings | | |   Social Stability

300 out of 657 of China’s Cities Face a Severe Water Shortage

According to the Ministry of Housing and Urban-Rural Development, based on the standard set by United Nations Human Settlements Program, out of 657 cities in China, over 300 cities can be categorized as facing a “severe water shortage.” The Ministry also disclosed that the consumption structure of China shows that agricultural use is at 61 percent, industrial use is at 24 percent, and residential use in the urban regions is at 13 percent. 

Source: Xinhua, May 17, 2014
http://news.xinhuanet.com/politics/2014-05/17/c_1110734884.htm

Briefings | | |   Economy/Resources

Qiushi Theory on the Challenges China Faces in Growing into an Internet Superpower

Qiushi Theory published an article on the strategy for China to grow into an Internet superpower. The article also listed three challenges that China faces. The first is that, even though China is the largest manufacturer of mobile devices in the world, accounting for 70 percent of the world’s production, it is lagging behind because it does not own the core technology rights as compared to developed countries. The second challenge is how to maintain Internet security. The article stated that the Internet is a double edged sword. While the Internet is a platform to spread mainstream ideology, “those criminals or those who have the ulterior motive of spreading rumors can use it to stir up affairs or conduct illegal activities.” The third challenge is how government can maximize its role in the allocation of resources in the market, such as by creating a market for domestic made products. The article used the example of how the EU set up GSM (the Global System for Mobile Communications) and WCDMA (Wideband Code Division Multiple Access) as the European communication standard before certain products were even developed.

Source: Qiushi Theory, May 13, 2014
http://www.qstheory.cn/zxdk/2014/201410/201405/t20140513_348197.htm

Briefings | | |   Government/Politics

Guangming Daily on the China (Shenzhen) International Culture Industries Fair

In a recent article, Guangming Daily featured the China (Shenzhen) International Culture Industries Fair (ICIF) for its role in "stimulating the development of China’s culture industry and promoting Chinese culture in the world."

According to its website, the Ministry of Culture of the People’s Republic of China; the Ministry of Commerce of the People’s Republic of China; the State Administration of the Press, Publications, Radio, Film and Television; the China Council for the Promotion of International Trade; the Guangdong Provincial People’s Government; and the Shenzhen Municipal Government hosted the ICIF. The ICIF serves as a platform for Beijing to promote its own culture products to the world.

The 10th ICIF, taking place between May 15 and 19, 2014, has over 2,000 exhibitors with 17,000 overseas buyers in attendance. It is said to be the largest such fair to be presented in the last 10 years. The total trade value of the previous nine fairs amounted to US$85 billion.

Wang Jingsheng, the Chinese Communist Party’s propaganda chief in Shenzhen, said, "Chinese Culture’s ‘going global’ is the symbol of our national rejuvenation."

Ye Jianqiang, CEO of the Fair, expressed the belief that "the key is to have the products which carry the cultural ideology and values that meet the demand of the international market."

According to the article, the Shenzhen culture industry has become an important import and export base. The annual volume of culture products exported is 20 percent of the national total and the import volume is 18 percent. The products include original animated movies and 3-D movies that have penetrated the market in 40 countries, including the U.S. and Canada.

Source: Guangming Daily, May 18, 2014
http://news.gmw.cn/2014-05/18/content_11346311_2.htm

Briefings | | |   Government/Politics