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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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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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Corrupt Officials Are behind the Housing Market Downturn

New regulations have been proposed, to be implemented by the end of 2014, requiring the registration of real estate. Corrupt officials are trying to sell their real estate before the regulations take effect. According to Zhongyuan, a leading real estate brokerage firm in China, the effort to sell quickly has played a large role in the downturn of the housing market. Zhongyuan, one of the largest brokerage firms in China, has tens of thousands employees in over 30 major cities throughout China. Shi Yongqing, Zhongyuan’s founder, is pessimistic about the prospects for the housing market. “There are three indicators of a real estate bubble: over-building, excess credit, and prices that are too high. China’s housing market has all three. None of these problems can be solved easily.” 

According to Zhongyuan’s real estate brokers, “Officials are selling, and not just a few of them. The purchasing power of these officials is evaporating. They have become a driving force pushing the market downward." One observation is that the upcoming implementation of real estate registration has prompted these officials to get rid of houses they obtained using questionable means. On May 14, 2014, the Ministry of Land and Resources announced that real estate registration will be a priority for its rulemaking in 2014. The objective is to release a final draft by the end of June. 
Sources: 
First Financial Daily reprinted by China Economy, May 29, 2014 http://www.ce.cn/macro/more/201405/29/t20140529_2891382.shtml 
People’s Daily, May 27, 2014 
http://house.people.com.cn/n/2014/0527/c164220-25068014.html
Briefings | | |   Economy/Resources

Study Times Article on Sino-African Relations

Study Times, a weekly newspaper under the Party School of the Central Committee of the Chinese Communist Party, published an article discussing China’s policies in Africa. The following excerpts contain a few recommendations mentioned in the article.
“What also needs to be incorporated into China’s Africa policies is the enhancement of the voices and the representation of the African countries in international organizations so they can play their roles in the international community. For example, China should make its position clear in supporting African countries to join the permanent members of the United Nations and to be represented in the IMF and the World Bank. This is not only a crucial means of balancing the global power structure, but an important manifestation of China’s responsibility to Africa.”
“China has a clear roadmap for Sino-Africa relations. The development of the relationships needs not only a long-term and systematic overall planning and strategic design, but also specific policy measures. The new government has laid out detailed initiatives in this regard. China will continue to expand its investment and financing cooperation with Africa, fulfilling the promise of providing a US$20 billion line of credit to Africa within three years (now increased to US$30 billion), and implementing the ‘partnership with Africa on transnational and trans-regional infrastructure development.’ China will actively implement the ‘African Talent Program’ to train 30,000 professionals from African countries within three years and offer 18,000 government scholarships for African students in China. Through investment, financing, and cooperation, China will encourage Chinese enterprises and financial institutions to be involved in cross-border and trans-regional infrastructure construction and operation management in Africa. China has promised zero tariffs for ninety-seven percent of imports from Least Developed Countries that have established diplomatic relations with China. These measures will be in place by 2015. These concrete initiatives have provided notably favorable conditions for Africa’s infrastructure construction, personnel training, capital accumulation, and trade with China, contributing to closer Sino-Africa relations.”
Source: Study Times, May 26, 2014
http://www.studytimes.cn/shtml/xxsb/20140526/5072.shtml
Briefings | | |   Geo-Strategic Trend

Military Expert: U.S. Military Takes China As Its Combat Opponent in the Asia-Pacific Region

While China and Russia were having the "joint maritime – 2014" military exercise in the East China Sea, the U.S. deployed the RC-135 strategic reconnaissance aircraft to monitor the exercise closely. In an interview with a People’s Daily reporter, military expert Yin Zhuo, Rear Admiral in the PRC Navy, and a committee member of the eleventh Chinese People’s Political Consultative Conference, said that the U.S. military reconnaissance of China is directly related to preparations for a military fight in the Asia-Pacific rebalancing. 

Yin Zhuo observed that the United States is currently implementing the Asia-Pacific rebalancing strategy. Therefore, the U.S. military is tracking many of China’s main battle weapons and battle platforms closely, from the initial development to the final design. The U.S. is also tracking China’s major military test site and test base, placing them under 24-hour surveillance. The purpose is to obtain relevant data as an element of future combat preparations. 

He also said that the United States is conducting close surveillance while applying military pressure on China. This clearly shows that, in the Asia-Pacific region, the United States is taking China as its combat opponent. 
Yin said that the U.S. reconnaissance of the military exercise is both a challenge and also an important training element for China and Russia. 

Yin pointed out that U.S. electronic surveillance of the Sino-Russian military exercise "presents a good opportunity for us to have a complex electronic environment. We will consider it in the electronic warfare exercise, so that the training environment will be more real and closer to actual combat." 

Source: People’s Daily, May 22, 2014 
http://military.people.com.cn/n/2014/0522/c1011-25051226.html http://military.people.com.cn/n/2014/0522/c1011-25050574.html

Briefings | | |   US-China Relations

Pessimism in China’s Housing Market Continues

Since January, the housing market has been experiencing a sharp downturn due to the facts that, in addition to other factors, banks have been tightening credit and inventory has increased. Commodity housing sales in large and medium sized cities slid by 20 to 30 percent with some down as much as 40 to 50 percent. 

In Shanghai, for example, new housing transactions were down 25.56 percent for the first 21 days in May, compared to the same period in April, and down by 34.86 percent compared to same period last year. 
Market analysts believe that, were the banks to loosen credit, the pessimism in the housing market would not change. In fact, it is almost impossible for banks to loosen credit to stimulate the housing market. A reduction in housing prices seems to be the only option to deplete the existing inventory. 

Source: 21st Century Business Herald, May 29, 2014
http://fangchan.21cbh.com/2014/5-29/5MMDA1NzFfMTE4MjM5MA.html

Briefings | | |   Economy/Resources

DWNews: Xi Jinping Uses the CICA to Counter the U.S.

DWNews.com, an New York based Chinese news portal, published an article on the recent Summit of the  Conference on Interaction and Confidence-Building Measures in Asia (CICA) which was held in Shanghai on May 20 to 21. The article stated that Xi Jinping took the CICA as a platform to implement his strategy to reduce the U.S.’ influence in Asia. Xi stated at the summit that Asia’s affairs need to be taken care of by Asians; Asia’s problems need to be taken care of by Asians; and Asia’s security needs to be taken care of by Asians.

The article further explained that the reason Xi picked the CICA instead of the Shanghai Cooperation Organization (SCO) to send this message is because the SCO, which is led by China and Russia, already has a strong anti-U.S. flavor. It would be too sensitive to use the SCO as the platform to send such a message. CICA, which Kazakhstan initiated, has a much wider participation (26 countries, including all six of the SCO member countries).

Source: Dwnews.com, May 24, 2014
http://china.dwnews.com/news/2014-05-24/59473636.html

Briefings | | |   US-China Relations

China Review News: The US’s Foreign Policy Acts As an Arsonist

On May 25, 2014, China Review News published a commentary titled “‘The United States’ Crooked Mouth Has Not Been Able to Sing a Harmonious Tune in Asia.”

According to the article, the US foreign policy acts as an “arsonist” in that it directs the United States to set fires everywhere.” The US government’s “Return to Asia-Pacific” policy is a “selfish policy covered with a noble slogan.” The real purpose of the “Return to the Asia-Pacific” is for the U.S. to “consolidate its own hegemony in the increasingly prosperous Asia-Pacific region.” What the U.S. has been doing is “forming cliques and stirring up disagreements,” such as cooperating with Japan and the Philippines to curb a 3rd country (China).

Source: China Review News, May 25, 2014
http://hk.crntt.com/doc/1032/0/4/3/103204300.html?coluid=148&kindid=7550&docid=103204300&mdate=0525093040  

Briefings | | |   US-China Relations

Huanqiu: American Hegemony’s Biggest Threat to China is the Americanization of China

On May 26, 2014, Huanqiu published a commentary titled “Issues of China’s ‘De-Americanization.’” According to the article, American hegemony’s biggest threat to China is the Americanization of China. The purpose of “‘De-Americanization’ is to get rid of American centrism.” The trilogy of "De-Americanization" is to “let China be China, let Asia be Asia, and let the world be the world.”

"Let China be China" refers to the point that the "China Dream could be a nightmare for Americans," if China cannot handle well the environmental challenges posed by economic development. However, "if China can successfully achieve that, China will create a new civilization of sustainable development for human beings. China will then become a country that can lead the world." "This is what Obama failed to realize."

"Let Asia be Asia" is in response the dilemma that "Asian countries rely on China economically and rely on the U.S. for security issues." "This is why the U.S. is ‘returning to Asia.’ Under the banner of the TPP, the U.S. expects that Asian countries will rely on the U.S. for both economic and security matters." As a solution, "China’s Communist Party Chair, Xi Jinping, proposed at the 4th CICA Summit in Shanghai that ‘Asian people should, ultimately, handle Asian issues and the Asian people should ultimately safeguard Asia’s security.’"

"Let the world be the world" is the effort of China to "make the West the West and reduce universal values back to Western values." To achieve this, China has been working with Russia, the SCO, ASEAN, and the BRIC countries (Brazil, Russia, India and China) to promote a "diversified world development model and democratic international relations." Specific efforts include "condemning Japan for challenging and undermining the post WWII international order," "internationalization of the Chinese currency," "the twenty-first Century Maritime Silk Road," and "the Silk Road Economic Belt."

Source: Huanqiu, May 26, 2014
http://opinion.huanqiu.com/opinion_world/2014-05/5005164.html

Briefings | | |   US-China Relations

China Daily: China To Allow Ten Provinces and Cities to Issue Bonds

China Daily recently reported that China is planning that, later this year, the first group of ten provinces and cities will be allowed to issue their own bonds. The bonds will be modeled after the “Western municipal bonds.” The plan includes Zhejiang, Jiangsu, Shandong, Guangdong and two other less-developed provinces. It also includes the cities of Beijing, Shanghai, Shenzhen, and another coastal city. The report estimated that the announcement would be made near the end of May and that the bond issuance might happen in July. Currently, China’s local governments are not allowed to issue bonds directly, at least not officially. The new plan will also include a rating system for the local bonds. However all these are still pending approval of the National People’s Congress (NPC). The scale of this first wave of local bonds is still unclear.
 
Source: China Daily, May 19, 2014
http://caijing.chinadaily.com.cn/2014-05/19/content_17518160.htm
Briefings | | |   Economy/Resources