Chinascope – Page 771

China Review News: Internal Security in China Is More Crucial Than External Security

On May 20, 2014, China Review News published an article further explains “the Overall National Security View“ proposed by the Chinese Communist Party Chairman Xi Jinping at the first meeting of the National Security Commission on Tuesday, April 15, 2014. According to Xi’s speech, China must “implement and put into practice an overall national security view, paying attention to external as well as internal security.” While internal security aims at stable development, external security aims at win-win cooperation. China Review News article points out that

Xi has corrected the one-sidedness of China’s security policies in the past, which only emphasized on external security;
Xi implies that internal security in China is more crucial than external security as he put the aims of “internal security” before “external security”.

Source: China Review News, May 20, 2014
http://hk.crntt.com/doc/1031/9/3/4/103193475.html?coluid=151&kindid=11513&docid=103193475&mdate=0520001410

Briefings | | May 21, 2014 | Government/Politics

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 | | May 21, 2014 | 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:

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.
Develop contingency plans for financial emergencies.
Set up a bank deposit insurance system as soon as possible to stop people from withdrawing all of their money from banks.
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 | | May 21, 2014 | 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 | | May 20, 2014 | 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 | | May 20, 2014 | Geo-Strategic Trend

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 | | May 19, 2014 | 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 | | May 19, 2014 | Government/Politics

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

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

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

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