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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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Qiushi: The Chinese Economy Faces Three Major Risks

According to the periodical Qiushi, China’s economy faces three major risks. Therefore, it is important for China to “guard against deflation, the flight of venture capital, and debt default. It must prevent them from resonating together which would amplify their negative impact on the economy.” 

Regarding the risk of deflation, there is pressure on the Consumer Price Index and the Producer Price Index to decline. The growth of the money supply is slowing down. Economic growth is also lower due to a lack of demand, with GDP growth at 7.4 percent in the first quarter of this year. 
The risk of capital flight is increasing as evident from RMB depreciation. The trade deficit and the funds outstanding for foreign exchange are growing. If economic growth continues to slow down, capital flight will accelerate, thus putting more pressure on the RMB to depreciate, which in turn will adversely impact the real estate market, the foreign exchange market, and the financial market. 
Debt default may continue in the construction, real estate, and mining industries. As more caution is exercised in providing loans and credit, market interest rates will move up, leading to a further contraction of the economy. 
Source: Qiushi, April 23, 2014 
http://www.qstheory.cn/jj/xrsd/201404/t20140423_342974.htm
Briefings | | |   Economy/Resources

Qiushi Warns that Information and Ideological Warfare May Disintegrate the State

Qiushi, a journal of the Central Committee of the Communist Party of China, published an article on information and ideological warfare becoming an urgent issue in national defense. 

The article stated that, for a long time, United States has used culture penetration as a highly militant, subversive, and destructive element of its national strategy. Its dominance on the Internet is much more overwhelming than its nuclear and conventional military advantages. Of the 13 root servers in the world, 10 are located in the United States. Also located in the United States are the largest search engine (Google), the largest portal (Yahoo), the largest online video site (YouTube), the largest SMS platform (Twitter) and the largest social media (Facebook). 
The article further stated that in China, some web portals have become anti-Party and anti-government “independent kingdoms,” while others use weibo to voice different opinions and comments and established negative “forums” to oppose the State’s media. For example, in a heated online debate launched by a few patriotic figures against online VIPs who have complex backgrounds and engage in rumor mongering, “almost none of the traditional main stream media and their websites or weibo even echoed any support [for the patriotic side].” 
The article warned that “the all-time information and ideological warfare using the pen, the keyboard, and coins can deflate the morale of the entire nation, leading to the disintegration of the State.” 
Source: Qiushi, April 23, 2014 http://www.qstheory.cn/gf/jsll/201404/t20140423_343027.htm
Briefings | | |   Government/Politics

“Ukraine Crisis May Bring China a Decade of Strategic Opportunities”

At a recent forum discussion, Major-general Wang Haiyun, a senior advisor at the China International Institute for Strategic Society, spoke on the Ukraine crisis. The following are excerpts from his comments.
"After the disintegration of the Warsaw Pact and the Soviet Union, Europe transitioned from a region related to the U.S.-Soviet confrontation to one of peaceful coexistence. In recent years, with the implementation of the United States’ ‘re-balance to the Asia-Pacific’ strategy, the confrontation seems to have shifted to Asia. However, the Ukraine crisis once again made Europe the frontier of the confrontation between Russia and the West."
"Since the Cold War, the Ukraine crisis has become a turning point for East-West relations. Russia and the U.S. are switching from strategic tolerance to strategic confrontation. The U.S. will have to strengthen its military and political presence in Europe."
"Given this circumstance, NATO’s ambitious global intervention may have to shrink to Europe. Its capacity to be involved in Central Asia and East Asian affairs will have to decline. In other words, the U.S.’s ability of strategic encirclement of China may be weakened; the hegemonic pressure that China is facing may be reduced."
"Because of the defamation, isolation, coercion, and suppression emanating from the Western powers, with its deterioration of the international environment, and especially its West border security environment, Russia has to rely on China, a booming power with similar strategic interests and strategic ideals to counterbalance the Western pressure."
"Not being a party of the dispute, China is relatively detached. As a result, many parties are looking at the reactions from China and hope that China is on their side. This places a high requirement on China’s diplomacy. If China handles it well, China can improve its international status and enhance its voice in the international community."
Source: People’s Daily Online, April 23, 2014
http://military.people.com.cn/n/2014/0423/c1011-24932194.html
Briefings | | |   Geo-Strategic Trend

People’s Daily: China Has Become the Major Target and Victim of U.S. Section 337 Investigations

While talking about the issue of the intellectual property rights of Chinese enterprises overseas, the Director of the State Intellectual Property Office, Shen Changyu, said that the number intellectual property disputes between China and the U.S. is growing. China has become the main target country and the biggest victim of the U.S.’s Section 337 investigations [Section 337 investigations are conducted by the U.S. International Trade Commission. They usually involve claims concerning intellectual property rights, including patent and trademark infringement allegations on imported goods.] Chinese enterprises are also actively studying how to deal with the investigations. 

Shen used ZTE Corporation [a Chinese company specializing in telecommunications equipment and network solutions] as an example to illustrate his point, “I recently went to ZTE and learned that, in recent years, the United States has subjected ZTE to six section 337 investigations. ZTE has fought very actively against the investigations. In the final rulings from last December to March of this year, ZTE won three in a row. This shows that, on the one hand, our enterprises should plan the intellectual property layout ahead of time and actively apply for patents abroad. On the other hand, our enterprises should learn how to and have the courage to apply the rules of intellectual property to safeguard their legitimate rights and interests and to deal with different intellectual property disputes." 

Source: People’s Daily, April 22, 2014 
http://world.people.com.cn/n/2014/0422/c1002-24927963.html

Briefings | | |   US-China Relations

Qiushi on the Chinese Economy: Have Confidence, Patience and Determination

Qiushi published a commentary on the Chinese economy titled, “Have Confidence, Patience and Determination.” 

“First, [we should] establish confidence and let the public know that the current economy is still running in the normal range, that the trend is still smooth, and that they should not be too worried. This will stabilize everyone’s expectations. Second, [we should have] patience. It takes time to resolve excess capacity, to introduce, implement, and achieve the results of the policy of reform and to cultivate new economic growth. Therefore [we should] not be in a hurry. Being in a hurry can easily lead us to re-taking the old road. Third, [we must] have the determination to  push reform forward unswervingly, to strengthen the propaganda about the effective reforms already made, and to sum up and promote successful reform experience, boost reform morale, and stand in solidarity to make breakthroughs, all in a timely manner.” 
The commentary compares the Chinese economy to "a person who is basically healthy, but with ying and yang out of balance, and with some bad habits and illnesses. The person is now right in the critical period of the treatment and reactions may be severe, but one must bite his teeth and tough it out. After the “treatment” in this stage, the Chinese economy will see healthy growth.” 
Source: Qiushi, April 21, 2014 
http://www.qstheory.cn/wz/shp/201404/t20140421_342012.htm
Briefings | | |   Economy/Resources

Cyberspace in China to Have Automatic Screening and Erasing Function

On April 21, 2014, wenhui.news365.com.cn published an article on automatic Internet control. According to the article, it is necessary to establish an automatic Internet screening system so as to erase any “one-sided, unhealthy, and illegal” information from the Internet immediately. To achieve this goal, it is necessary to have a government level management system, more comprehensive Internet laws and regulations, and public opinion guidance on the Internet so as to stop any Western ideological trends and promote socialism with Chinese characteristics as well as the China dream. 

Source: wenhui.news365.com.cn, April 21, 2014
http://whb.news365.com.cn/sp/201404/t20140421_1832159.html

Briefings | | |   Information/Technology

Qiushi: China Uses Move to the West Strategy to Break through U.S. Containment of China

On April 22, 2014, Qiushi, a journal of the Central Committee of the Chinese Communist Party, published an article on China’s “Move to the West.” It discussed a “balancing strategy” of how China is to deal with the U.S. return to the Asia-Pacific and to “break through America’s containment of China.”

According to the article, China has good trade and economic relationships with European countries, Central Asia (the former Soviet Union Countries), Pakistan, and Iran. However, China’s “Move to the West” plan involves seeking Russia’s understanding and support. Currently, the conflict between Ukraine and Russia is escalating and both sides want China’s support. China must implement projects involving cooperation with Ukraine and also stand with the Russia together against NATO’s eastward expansion. China will continue its involvement in the China-ASEAN Free Trade Area, the Shanghai Cooperation Organization, and the China-Russia strategic cooperation. Meanwhile, China will seek development in the Oceans as well. However, the United States always creates conflict so as to contain us. We must resolve the problems in the neighboring countries in terms of economic dependence on China, moving outward politically from China, and pressure from marine power.

Source: Qiushi, April 22, 2014
http://www.qstheory.cn/gj/gjsspl/201404/t20140422_342588.htm

Briefings | | |   Geo-Strategic Trend

Outlook on National Security Commission’s First Meeting

Outlook Weekly published an article commenting on the first meeting of the National Security Commission which took place on April 15, 2014. Xi Jinping chaired the committee meeting, with Li Keqiang and Zhang Dejiang as deputies. The Commission was established in November 2013, with the responsibility to oversee all security matters that China faces.

The article stated that, in his speech at the meeting, Xi Jinping presented two new ideas:
1. He raised the “overall national security concept” and the “national security path with Chinese characteristics” for the first time. The “overall national security concept” is bigger than the previous security concepts. It encompasses the people’s safety, political security, economic security, as well as military, cultural, and social security.

2. He emphasized the concept of five “both’s": both external security issues and internal security issues, both the land security issue and the people’s safety issue, both traditional security issues and non-traditional security issues, both the (economic) development issue and the security issue, and both China’s own security issues and common security issues (with other countries).

Source: Outlook Online, April 21, 2014
http://www.lwgcw.com/NewsShow.aspx?newsId=35078

Briefings | | |   Government/Politics