According to Nanfang Dushi Bao (Southern Metropolis Daily), the first China national security blue book, the China National Security Research Report 2014, was released on May 6, 2014. It was prepared by the Strategic and Security Research Center under China’s Institute of International Relations. The Report reviewed, evaluated, and analyzed the national security issues of the past year and proposed countermeasures to the security challenges that China faces.
Cheng Ming Monthly: Wang Qishan Targeting Zeng Qinghong’s “Independent Kingdom”
The Central Commission for Discipline Inspection (CCDI) of the Chinese Communist Party (CCP) has targeted the five largest Chinese enterprises in Hong Kong for corruption. The five enterprise groups are: China Resources (华润集团), the Bank of China (中银集团), China International Trust and Investment Corporation (CITIC, 中信集团), the China Everbright Group (光大集团), and the China Merchants Group (招商局集团). At a CCDI meeting, Wang Qishan, the Commission’s Secretary, stated that their problems have long existed and are very severe. They have created independent kingdoms and their own cliques.
According to the May Edition (439th Edition) of Cheng Ming Monthly, a Hong Kong-based Magazine, of the top executives of these five largest Chinese enterprises and 35 enterprises owned by Provinces or Ministries in China, 75 to 80 percent are the children, grandchildren, or relatives, of government officials. 63 to 75 percent hold a foreign passport or residence card.
On April 11, 2014, the CCDI held a meeting of the “Anti-Corruption and Rectification Campaign” to target those five largest Chinese enterprises in Hong Kong. Wang Qishan stated at the meeting, “The combined work of auditing, checking, rectifying, and anti-corruption for the five enterprise groups have a clear, well-defined, and firm purpose. This work is to maintain responsibility to our people, our country, and our undertaking. For this work, we should never stop in the middle, retreat, or leave something unresolved for the future.”
Wang further listed the major problems that these enterprise groups face:
1. They have been establishing independent kingdoms and cliques in the areas of appointing executives, operations, and auditing.
2. There are powers at certain Central CCP department and local governments protecting these groups, which means that the central government’s over-twenty attempts to rectify and investigate these companies was done in vain.
3. They have changed or abandoned the CCP Central Committee’s regulations on institutions stationed outside China.
4. They have ignored the central government’s fiscal system, financial system, and accounting system, and created multiple versions of accounting books to cheat the government.
5. Top executives of these enterprises, along with their relatives, have conducted individual illegal economic and financial activities in the name of the enterprise.
6. They spend lavishly on salaries, benefits, and bonuses.
[Editor’s Note: Zeng Qinghong (曾庆红), the number two person in Jiang Zemin’s clique, has a strong influence over Hong Kong and Macao affairs. From 2003 to 2007, he was the Chair of the Central Hong Kong and Macao Work Coordination Committee and has continued to maintain a powerful influence. China Resources Chairman Song Lin, who was recently taken down on corruption charges, is considered Zeng’s man. Some media have mentioned that Wang’s targeting of these enterprises is a step aimed at Zeng.
Source: Wenxuncity.com, May 3, 2014
http://www.wenxuecity.com/news/2014/05/03/3236647.html
China Review News on Social Problems in China
On May 6, 2014, China Reviews News published an article on the major social problems that cause social instability in China. A discussion of the issues follows:
1) Livelihood Issues: Ordinary Chinese people do not have enough money to buy an apartment, see a doctor, or send their children to a good school. In addition, the Chinese people worry about unemployment, retirement, social security, food safety, traffic congestion, public safety, property disputes and other basic livelihood issues.
2) Land Acquisition: Local governments’ major financial source is the sale of land. Chinese farmers are losing their farmland, but do not receive any reasonable compensation.
3) Resettlement: Residential properties have been demolished for urbanization, large-scale water conservancy, and construction, but without any reasonable resettlement.
4) Environmental Pollution
5) Social Injustice
6) Judicial Injustice
7) Corruption, as well as Government Officials’ Privileges
8) Nationalism
Source: China Review News, May 6, 2014
http://hk.crntt.com/doc/1031/6/8/9/103168971.html?coluid=151&kindid=11513&docid=103168971&mdate=0506002536
China’s National Security Commission in Charge of both Domestic and Foreign Security Issues
According to China’s National Security Research Report (2014) released on May 6, 2014, China’s new National Security Commission is the highest decision making body on national security. It is also a chamber and a coordinating agency in charge of both domestic and foreign security issues. It takes responsibility for all of the following:
1) The development and implementation of China’s national security strategy: As the scope of national security is no longer confined to military issues, the national security strategy will be developed in macro and overall perspectives
2) The development of New National Security Law: China’s existing national security law includes counter-espionage laws, but that is too narrow. China’s new national security legislation should encompass military, political, diplomatic, economic, cultural, science and technology, information, ecology, intelligence, and other areas.
3) The development of National Security Policies: It should develop policies on how to deal with major domestic and foreign security crises and emergencies, how to solve social conflicts, how to combat the “three forces” (terrorists, ethnic separatists, and religious extremists) and more.
4) The study and resolution of Major National Security Problems: The National Security Commission is an inter-departmental coordination mechanism at the highest decision-making power. It involves public security, national security, military armies, police; diplomatic, transportation, economic, and intelligence departments, as well as the Foreign Affairs Office, the State Council Information Office and Hong Kong, Macao, Taiwan’s related offices.
Source: China News, May 6, 2014
http://www.chinanews.com/gn/2014/05-06/6137496.shtml
CASS: China Exaggerated 2012-2013 Export Numbers
BBC Chinese: Iran Cancelled US$2.5 Billion Contract with China
Xinhua: China Imposes Taxes on EU Polysilicon as Punishment
Xinhua: Chinese Youth Feel Pressured and Insecure When Pursuing Their Dreams in Life
On May 4th, which has been established as China’s Youth Day, Xinhua carried an article on Chinese youth and their mental state as they pursue their dreams in life. The article observed that the youth in China are under tremendous social pressure. Many of them are puzzled and lost as they face a reality that turned out to be different from their expectations. They face the issues of skyrocketing housing prices and a valid urban residential status. Those who came from the rural areas seeking opportunities in the urban regions feel especially unsettled. The article also quoted Lian Xi, director of the youth development research center of the University of International Business and Economics. Lian stated that, currently, Chinese youth often develop their understanding of society while they are in school. Then, when they enter society, because of the reality they face, many of them encounter insecurity about their futures.
Source: Xinhua, May 4, 2014
http://news.xinhuanet.com/politics/2014-05/04/c_126456893.htm