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Hu Jintao Visited Hu Yaobang’s Former Residence

On April 11, days before the 25th anniversary of the death of the late Chinese Communist leader Hu Yaobang, retired Chinese Communist Party General Secretary Hu Jintao paid a visit of the former residence of Hu Yaobang in the town of Liuyang in Hunan Province.

In the 1980s Hu Yaobang was one of the main leaders of the Chinese Communist Party. When Mao Zedong was the paramount leader of China, Hu was viewed as open minded and rectified many miscarriages of justice. In 1987, Hu was accused of being ineffective in opposing capitalist liberalization and senior Party heavy weights forced him to resign. Hu died on April 15, 1989. His death inspired tens of thousands of students in Tiananmen Square to give their condolences, which then evolved into the 1989 student movement, followed by the June 4th massacre.

Hu Yaobang once promoted Hu Jintao, the retired Party secretary at the 18th Congress, to the top position at the Chinese Communist Youth League, a communist organization for young people.

On Friday morning, accompanied by officials in Hunan province, Hu Jintao visited the former residence of Hu Yaobang and his museum, staying there for an hour. It is reported that President Hu Jintao visited the statue of Hu Yaobang and bowed to Hu Yaobang to pay tribute. Hunan authorities have kept the news from the public.

Source: Voice of America, April 12, 2014
http://www.voachinese.com/content/hujintao-huyaobang-20140412/1891916.html

Huanqiu: Former First Lady vs a Brother of a Former President; a Tragedy for US Democracy

On April 12, Huanqiu Published an article discussing U.S. democracy, with quotes from the Washington Post, Financial Times, and the Los Angeles Times.

"Although it is two and a half years away, American media, already tired of Obama, are more keen on predicting the 2016 Presidential election. According to the Washington Post, Hillary Clinton and Jeb Bush, the former Governor of Florida and younger brother of former President George W. Bush, both showed up at an education conference. This was a stage appearance in preparation for their 2016 presidential campaign. So far, neither has announced their candidacy and there won’t be any conclusion drawn before the end of the year. In accordance with the usual tactics of Republicans and Democrats, however, the 2016 election is likely to be a battle between a former President’s son and another President’s brother, and a former President’s wife."

"Since Hillary wants to warm up for the next general election, why would she appear in the city of Las Vegas which does not have a good reputation. Few American media offered an explanation. According to the Financial Times article on March 30, ‘Last week several Republican presidential hopefuls trekked to Las Vegas to pay their respects to Sheldon Adelson, the gaming billionaire.’ The article said that the U.S. may remove the ceiling on what individuals can give to candidates and parties, [thereby rescinding] ‘what remains of post-Watergate limits on campaign finance.’ ‘But in an economy where the top 1 per cent of the population owns more than a third of the nation’s wealth, it corrodes the republic from which such riches sprang. People fret about America’s 1 per cent economy. They should worry more about its 1 per cent democracy.’"

"There has never been a time when America’s political families were so deep-rooted. According to statistics, of the most recent nine presidential campaigns, there were seven in which candidates came from either the Bush or the Clinton family. In his Los Angeles Times article, New York University history professor Jonathan Zimmerman stated, ‘A few years ago, I found myself sitting on an airplane next to a gentleman from Egypt. Talk quickly turned to the upheaval in his country, where the so-called Arab Spring was in full bloom.’ ‘"We want a real democracy," he told me, "not like yours." When I pressed him to elaborate, he shot back with a question of his own. "How many times have you voted," he asked, "when someone named ‘Bush’ or ‘Clinton’ wasn’t running?"’ This history scholar then lamented that ‘We tell the world that we’re a land of opportunity, where anyone can grow up to be the president. Then we limit ourselves to a handful of political dynasties.’ ‘That’s not good for our image overseas, or for our democracy at home.’"

Source: Huanqiu, April 12, 2014
http://world.huanqiu.com/exclusive/2014-04/4969327.html
LA Times, March 27, 2014
http://www.latimes.com/opinion/commentary/la-oe-zimmerman-political-dynasties-20140327,0,4599058.story#axzz2x9oFfqj1

Head of State Oceanic Administration: Marine Resources Plundered; Multiple Conflicts

In a recent talk, Liu Cigui, the Administrator of China’s State Oceanic Administration, discussed the severe situation of safeguarding maritime rights and interests in China’s surrounding waters: marine resources have been plundered; waters have been divided up; reefs have been occupied; the security of strategic passages has been threatened; and conflict has broken out in multiple locations.

Liu said that the ocean is an important platform for international political, economic, military, and diplomatic cooperation and competition. The ocean is in an even more important position for the national strategy of coastal countries. "The State Oceanic Administration, confronted by various maritime conflicts such as Japan’s so-called ‘nationalization’ of the Diaoyu Islands and the Philippines Ayungin Reef incident, has taken a series of counter-measures and achieved initial results."

Liu added that, in accordance with the "United Nations Convention on the Law of the Sea," China has extensive strategic interests and legitimate rights in the open seas, the ocean, the international seabed, and the North and South Poles.

Source: China News, April 11, 2014
http://www.chinanews.com/gn/2014/04-11/6055889.shtml

China’s State Media Praise the Military’s Strong Showing to the U.S. Defense Secretary

In the meeting with U.S. Defense Secretary Chuck Hagel, Chinese Military Committee Vice Chairman Fan Changlong directly expressed how upset China was with the unfriendly remarks Hagel made ahead of his visit. China’s state media Global Times published an editorial praising the military for showing strength to the U.S. Defense Secretary. The article stated: 

“China’s military was very frank in showing its differences with the U.S. Previously this was quite rare. This change is a manifestation of the Chinese military’s confidence. It is to showcase the real China in an internationally popular manner.” 
“When having a conflict with someone, China does not resort to war, but Japan often takes out the treaty of the U.S.-Japan alliance [as a weapon]. It constantly preaches that it will use force against the Chinese aircraft ‘invading’ the Diaoyu Islands. The Philippines also shows off its U.S. military protection. From time to time, the U.S. hints that it might have military involvement in the Island conflicts that Japan and the Philippines are having with China. In such instances, the Chinese People’s Liberation Army reaffirms the will and ability to defend China’s territorial sovereignty. It is not quite normal.” 
“Facing such a large country as China, the Philippines dares to play the hooligan by setting up an old warship on the beach at Second Thomas Shoal. This is by no means normal. Manila misjudged China’s tolerance. If such misjudgment spreads out to some extent, it will become a baseline for an understanding of China from the outside. China must clear up this false impression and try to achieve its goal by using language. If language is not enough, it must be coupled with action.” 

“If China’s effort to dispel such outsider’s false judgments of China implies risk, then the United States, Japan and the Philippines will need to take the risk together with China.” 

Source: Global Times, April 9, 2014 
http://military.people.com.cn/n/2014/0409/c1011-24855505.html http://opinion.huanqiu.com/editorial/2014-04/4960368.html

Financial Trouble Looming as Demand for Coal Continues to Decline

According to Securities Daily, as a result of China’s economic downturn and the severe drop in the demand for coal, coal prices have continued to fall. This factor, along with an increase in coal imports, has resulted in a decline in the price of domestic coal and a serious excessive capacity. In Erdos, Inner Mongolia which is highly dependent on the development of coal resources, the daily sales of coal from some coal mines is less than one-tenth of the normal amount of sales. The slump in the coal industry is seriously affecting the revenue from real estate and hotels, as well as tax revenue. The tax revenue from one coal district declined from 200 million yuan per month to 20 million per month. 

The demand for coal has fallen drastically. With a few exceptions for several major steel mills, all the steel mills in Tangshang, Hebei Province are shutting down their production. All cement plants within 100 miles of Beijing are also closing down. 

Source: Securities Daily, April 10, 2014 
http://zqrb.ccstock.cn/html/2014-04/10/content_412087.htm

Chinese Investment in Australia

In March of 2014, KPMG and the University of Sydney’s China Study Center jointly published the report, "Demystifying Chinese Investment in Australia." The report explores the recent direction of Chinese investment in Australia.

In 2013, Australia lost to the United States as the top destination for Chinese outbound direct investment. The total value of Chinese investments in Australia from 2005 to 2013 was $57,250 million, second to the U.S., which was $59,900 million.

Although Chinese investments in Australia registered a 10 percent decrease in 2013 as compared to 2012, there was a clear shift toward larger numbers of small to medium sized deals having larger shares of private Chinese investors, particularly in the commercial real estate sector.

For the first time, Chinese investments in Australia were not concentrated in the mining sector. Instead the power transmission industry dominated with the State Grid deal accounting for 40 percent of the total investment value in 2013, followed by mining (24 percent), gas (21 percent), commercial real estate (14 percent) and agribusiness (1 percent).

Source: "Demystifying Chinese Investment in Australia," March 2014 Update.
http://www.kpmg.com/au/en/issuesandinsights/articlespublications/china-insights/pages/demystifying-chinese-investment-in-australia-march-2014.aspx

Fan Changlong to Chuck Hagel: Your Remarks in Japan Really Upset the Chinese People

While meeting U.S. Secretary of Defense Chuck Hagel, China Central Military Committee Vice Chairman Fan Changlong shared his response to Secretary Hagel’s recent remarks made in Japan:

Secretary Hagel recently made some remarks. We, the Chinese people, are upset [with those remarks]. On the Diaoyu Islands issue, the U.S. has repeatedly said that the U.S. does not choose sides. It is puzzling that Mr. Secretary has publicly welcomed Japan to lift the ban on collective self-defense and has encouraged and supported Japan. It is the Philippines that invaded the South China Sea islands and reefs, but Mr. Secretary defends the Philippines and accuses China. 
Now there are people provoking us in the areas surroundings us. … The Chinese army is prepared to face all kinds of threats and challenges at any time. We will be ready at the first call to fight and [we will] win any battle. 

Source: People’s Daily, April 9, 2014 
http://world.people.com.cn/n/2014/0409/c1002-24855428.html

Sporting Goods Store Closures Continue with High Inventories

During the economic downturn in China, stores for sporting goods with brand names faced their second round of closures in two years. In 2013, six well-known brand name sporting goods closed over 3,000 of their stores; inventories reached 3.1 billion yuan in 2013. 

In 2013, Lining, Anta, Peak, 361 Degrees, China Dongxiang, and Xtep closed over 3,000 stores. 361 Degrees was hit the hardest with 783 closures. Xtep shut down 150 stores and was the least affected brand. Back in 2012, during the first round of closures, Lining and Peak alone closed over 1,000 stores.
The inventory for all six brands remained high, hitting 3.1 billion yuan in 2013: Lining (942 million), Anta (689 million), Peak (366 million), 361 Degrees (409 million), China Dongxiang (183 million) and Xtep (537 million). 
Sources: 
Sina.com, April 8, 2014 
http://finance.sina.com.cn/stock/hkstock/marketalerts/20140408/145518734884.shtml 
Tencent, April 8, 2014 
 http://finance.qq.com/a/20140408/014472.htm