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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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Xi Jinping Mentioned “Anti-terrorism” Six Times within Two Months

On the afternoon of the April 25, the Chinese Communist Party’s Politburo held its fourteenth study session, with a focus on national security and social stability. Xi Jinping emphasized the importance of safeguarding national security and social stability in the face of the new situation and new challenges. China News Service estimated that this was the sixth time within two months that Xi Jinping mentioned anti-terrorism.

Xi pointed out, "We must soberly pay attention to the increasing threats and challenges to national security and social stability under the new situation, especially the resonance between a number of different threats and challenges." "The fight against terrorism matters for national security, for the vital interests of the masses, and for the overall situation of reform, development and stability. It is a battle to defend our national unity, social stability, and people’s happiness. We must take decisive measures, keep up the high pressure and firmly crack down on the terrorists’ blatancy."

These are the other five situations in which Xi mentioned "anti-terrorism."

On March 2, after the incident at Kunming’s railway station, Xi Jinping gave an instruction to understand deeply the seriousness and complexity of the anti-terrorism situation and to take effective measures to crack down resolutely on violent and terrorist criminal activities.

On March 4, at a meeting with minority ethnic groups, Xi Jinping said, "We must resolutely oppose all behavior that harms the great unity of all ethnic groups. We must resolutely punish and battle violent terrorist activities according to the law, and we must build an impregnable fortress of ethnic solidarity, social stability, and national unity."

On March 4, in his phone conversation with Russian president Putin, Xi Jinping expressed a willingness to maintain and strengthen anti-terrorist cooperation with Russia.

On March 10, in his phone communications with Obama, Xi Jinping emphasized his willingness to strengthen cooperation with the international community, including the U.S., in battling terrorism.

On April 9, Xi Jinping presented the flag to the "Falcon Commando" special forces of the People’s Armed Police. He asked the PAP, as an important national counter-terrorism force, to be conscientious in implementing the decisions and deployment of the Chinese Communist Party’s Central Committee, to be resolute in cracking down on violent terrorist crimes, and to safeguard national security and social stability.

Source: China News Service, April 27, 2014
http://www.chinanews.com/gn/2014/04-27/6110089.shtml

Briefings | | |   Social Stability

China Completed and Handed Over $30 Million Road Project as a Gift to Sierra Leone

On April 26, in Regent, a suburb of Sierra Leone’s capital city Freetown, Chinese Ambassador to Sierra Leone Zhao Yanbo officially handed over the newly constructed Regent-Grafton Road to the Sierra Leone government.

China Railway Seventh Group (CRSG), a subsidiary of the construction conglomerate the China Railway Group, undertook the construction of the 11.26km road, including several bridges and 34 pipe culverts. The project started in April of 2012 and was completed on April 25, 2014. It connects Regent and Kossor Town and helped ease the burden of traffic in Freetown.

The Chinese government provided the funds for the construction, costing US$30 million, through their bilateral development funds. Other major projects of CRSG in this West African country include the 35 km Makeni-Matotoka highway, the 65 km Bo-Kenema Highway, the 62 km Port Loko-Lungi axis, and major urban thoroughfares, including the Wilkinson Road and the Spur Road.

At the ceremony, Sierra Leone President Ernest Bai Koroma praised the Chinese government and the Chinese companies for their active participation in these infrastructure projects.

Source: Xinhua, April 27, 2014
http://news.xinhuanet.com/2014-04/27/c_1110430819.htm

Briefings | | |   Geo-Strategic Trend

Xi and Zuma Exchange Letters on Reciprocal China-South Africa National Theme Years

On April 27, 2014, Chinese President Xi Jinping and South African President Jacob Zuma sent letters to each other celebrating the launch of reciprocal China-South Africa national theme years.

In his congratulatory letter, Xi said that, in 2014 and 2015, China and South Africa will each launch the national theme year of the other nation. "This is a major event for the humanities for both countries and an important event in their friendly bilateral relationship. It will promote understanding and friendship between the two peoples and enrich the substance of the comprehensive bilateral strategic partnership. The Chinese side is willing to use the national theme year as an opportunity to work together with South Africa, elevating the bilateral comprehensive strategic partnership to a new level."

Zuma’s letter stated that, in recent years, the relationship between South Africa and China has advanced by leaps and bounds and that exchanges between the two peoples should be raised to a higher level.

Source: Xinhua, April 27, 2014
http://news.xinhuanet.com/world/2014-04/27/c_1110428929.htm

Briefings | | |   Geo-Strategic Trend

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