Chinascope – Page 774

Academician Ni Guangnan: There Will Be No National Security without Network Security

People’s Daily interviewed Ni Guangnan, an academician at the Chinese Academy of Engineering, and professor at the Institute of Computing Technology, Chinese Academy of Sciences, about network security issues. Ni pointed out that without network security there would be no national security. This is the Chinese government’s point of view today. Ni stated that network security is by no means a purely technical issue and China must raise it to the national strategic level.

Ni said, "Apple, Google, and Microsoft have monopolized the operating system running on intelligent terminals including desktop PCs, notebooks, and smart phones. If China does not have the core technology of the smart terminal operating system, it is impossible to safeguard network security."

Ni also said, "All of the Internet’s root servers are in the hands of the United States and several of its allies. The United States has the actual control. Over the years, a number of countries, including China, have repeatedly asked for ‘international co-administration’ of the Internet, but the United States does not agree. … Therefore, to truly safeguard China’s network security, we cannot have any illusions. We should earnestly take action through the development of future networks; ultimately we must solve the problem that the Chinese public network is dependent on other [countries]."

Source: People’s Daily, April 29, 2014
http://it.people.com.cn/n/2014/0429/c1009-24953592.html

Briefings | | May 9, 2014 | Government/Politics

Xinhua: Investment Funds Are Selling off Their Real Estate Holdings

Xinhua reported that, according to statistics, in the first quarter of 2014, 41.28 percent of stock funds and blend funds sold off their real estate holdings.

Out of 625 stock funds and blend funds, 258 cleared out their holdings in the real estate sector and now have zero investment in that sector.

In those three months, the market value of the real estate stocks that the funds held dropped from 39 billion yuan to 31 billion yuan, a decrease of 7.8 billion.

According to the 2014 first quarter reports of the investment funds, after the financial sector, the real estate sector was the hardest hit. A downward price adjustment and a market cooling have been confirmed for the housing market. The changes in the housing market will put significant pressure on the stock market.

Source: China Securities, May 8, 2014

http://news.cnstock.com/news/sns_yw/201405/3014364.htm

Briefings | | May 9, 2014 | Economy/Resources

About Twenty Thousand Ducks Died in Beijing; Bird Flu Suspected

Beijing News reported that about 20,000 ducks died within a week in six farms. The number is increasing daily. Wang Haijun started raising ducks last year. Since April 29, 2014, many of his 7,200 ducks have suddenly died. Less than 600 have survived. His neighbor Pan Meibing found that his ducks started to die on May 4. As of May 7, 2014, of 4,800 grown-up ducks, over 3,000 had died. Of 4,800 younger ducks, over 500 had died. Every day, large numbers of duck are dying.

Reports indicate that these farms have purchased feed from different sources. People have applied dozens of types of medicine, but to no avail. The farmers said that, before they died, the ducks showed symptoms consistent with bird flu.

Source: Beijing News, May 8, 2014

http://www.bjnews.com.cn/news/2014/05/08/316022.html

Briefings | | May 9, 2014 | Economy/Resources

China to Modify Radio Regulations; Maximum Penalty up to 500,000 Yuan

On May 6, China’s State Council Legislative Affairs Office started to solicit public opinion on the "People’s Republic of China Radio Regulations (Revised Draft)." The draft made it clear that unapproved use of radio frequencies and satellite orbit resources that cause serious consequences will be subject to a fine up to 500,000 yuan (US$80,300).

The draft stated that the use of radio frequencies shall not exceed 10 years. The operator should promptly deregister the frequencies if it plans to terminate the use of the radio frequencies before the expiration date. The allocation of radio frequencies should fully consider the needs of national security, economic, social and scientific and technological development, and the efficient use of resources.

The draft also demanded that radio regulatory agencies conduct regular inspections and testing on radio (stations), and investigate unlawful interferences in a timely manner in order to ensure the public safety of persons and property.

Source: Xinhua, May 6, 2014

http://news.xinhuanet.com/legal/2014-05/06/c_1110560161.htm

Briefings | | May 8, 2014 | Information/Technology

National Security Blue Book Proposes: China “Unite with Russia, Win over Europe, Harness the U.S.”

On May 6, the "National Security Blue Book: Chinese National Security Research Report (2014)," prepared by the International Center for Strategic and Security Studies of the Institute of International Relations, was released in Beijing. This is China’s first National Security Blue Book. The book reviewed and analyzed China’s national security situation over the past year and proposed measures on how China should handle the security challenges it faces.

At a news conference announcing the release, a number of experts made recommendations for China’s national security strategy. Feng Zhongping, Deputy Director of the Institute of Contemporary China’s International Relations, stated that a number of issues have developed into China’s biggest security threats. These include the strategic competition between international powers, the U.S. and Russia and the EU’s attitudes and policies towards China, as well as China’s territory and maritime interests.

From a strategic level, China should “unite Russia, win over Europe, and harness the U.S." "Unite Russia" means to consider Putin’s proposal to establish a Sino-Russian political alliance. "Win over Europe" means to increase the strategic content of China-EU relations beyond the trading relationship so as to deter and balance the United States’ strategy. "Harness the U.S." refers to establishing a "new type of great power relations" between China and the United States.

Source: sina.com, May 7, 2014 http://dailynews.sina.com/bg/chn/chnpolitics/phoenixtv/20140506/14305696805.html

Briefings | | May 8, 2014 | Government/Politics

China Released the First National Security Blue Book

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.

The report found that China’s terrorist activities showed a pattern of geographic expansion, with government agencies and police as the main targets of attacks and the use of rudimentary tools as weapons. There were 10 terrorist attacks in 2013.

The report stressed that relying on only some of the traditional government bodies cannot effectively curb the terrorist attacks due to their profound international background. The newly established State Security Committee (SSC) is “a strategic move to safeguard national security effectively.”

The report stated that, based on the Party’s documents, "The SSC is the highest decision making body on national security. It is also the executive and coordinating body of the highest authority.”

According to the report, the SSC will coordinate both domestic and overseas security. It has four functions: the development and implementation of a national security strategy, the promotion of the rule of law in national security, the development of national security policies, and the conduct of studies to solve major national security issues.

Source: Nanfang Dushi Bao (Southern Metropolis Daily), May 7, 2014

http://epaper.oeeee.com/A/html/2014-05/07/content_2067051.htm

Briefings | | May 8, 2014 | Government/Politics

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

Briefings | | May 7, 2014 | Grapevine

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.”