Chinascope – Page 775

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

Briefings | | May 7, 2014 | Government/Politics

CASS: China Exaggerated 2012-2013 Export Numbers

The well-known Chinese news website Sina Finance recently reported that the CASS (Chinese Academy of Social Sciences) Institute of World Economy and Politics released a research report in which it examined China’s export statistics. The CASS research revealed that the actual export growth in 2012-2013 was 4 percent instead of the “official” 7.9 percent. The research found that China’s actual export scale was often miscalculated because of the impact of two main factors: (1) The Export-then-Import factor: After cargo was "exported," it immediately got “imported,” so that there was no real export; (2) The Fake Export factor: The exporter incorrectly reported a higher number. The Export-then-Import approach was often used to “cook” export statistics to those preferred by government officials; the 2012-2013 numbers reached US$157.3 billion. The purpose of the Fake Export approach was typically to collect more export tax rebates or to claim higher foreign investments. The number for 2012-2013 was estimated to fall between US$163.9 billion and US$244.6 billion. In the year 2013, China’s total cargo imports and exports surpassed the United States enabling it to become the number one cargo trader in the world.

Source: Sina Finance, April 28, 2014

http://finance.sina.com.cn/china/20140428/170918949225.shtml

Briefings | | May 6, 2014 | Government/Politics

BBC Chinese: Iran Cancelled US$2.5 Billion Contract with China

BBC Chinese recently reported that the Iranian government just announced a decision to discontinue a US$2.5 billion oilfield development contract with PetroChina. The contract required PetroChina to deliver 185 oil wells in the South Azadegan oil field, which is located near the Iran-Iraqi border. However, according to the Iranian government’s official website, PetroChina only delivered seven. The Chinese vendor won the contract when the Western countries jointly sanctioned Iran. Iran claimed that a warning notification was sent to PetroChina 90 days before the contract termination. However, the Chinese company did not take any action. The Iranian government had another contract with PetroChina for developing the North Azadegan oil field. There has been no report on that contract. The Azadegan oil field is one of the largest oil fields in the world, with a crude oil reserve of 420 billion barrels.

Source: BBC Chinese, April 30, 2014

http://www.bbc.co.uk/zhongwen/simp/world/2014/04/140430_iran_china_oil.shtml

Briefings | | May 6, 2014 | Economy/Resources

Xinhua: China Imposes Taxes on EU Polysilicon as Punishment

Xinhua recently reported that China’s Ministry of Commerce announced, at the end of April, that China reached a final decision on taxing solar grade polysilicon imported from the European Union for anti-dumping and anti-subsidy reasons. The decision took effect on May 1 and will remain in effect for two years. The announcement suggested that the EU’s unfair dumping and subsidy behavior seriously damaged China’s polysilicon industry. However the Ministry accepted the pricing adjustment promise that a German company made, as an exception. At the same time, electronic grade polysilicon based semiconductor products such as integrated circuits and discrete devices were excluded from the scope of the investigation and the resulting taxes. Based on the decision that the Ministry of Commerce made, the Customs Tariff Commission of the State Council issued an order to implement the new policy.

Source: Xinhua, April 30, 2014

http://news.xinhuanet.com/world/2014-04/30/c_1110494176.htm

Briefings | | May 6, 2014 | Geo-Strategic Trend

Xinhua: Singapore Has Become the Second Largest Offshore RMB Center

According to data released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), on April 28, Singapore surpassed London and became the second largest offshore RMB center next to Hong Kong. The statistics showed that the March RMB settlement amount in Singapore accounted for 6.8 percent of the total. It thus surpassed London, which had 5.9 percent. However Hong Kong, which accounts for 72 percent of the world’s total, still remains the largest.

Source: Xinhua, April 29, 2014
http://news.xinhuanet.com/2014-04/29/c_126444131.htm

Briefings | | May 5, 2014 | Economy/Resources

China Review News Commentary on the Challenges that the Chinese Communist Party Faces

China Review News carried a commentary on the challenges that the Chinese Communist Party faces. According to the commentary, the most important issue that the Party faces is how the Party can develop as the ruling Party guided by Marxist ideology and how the Party can sustain its long term power and governing capability. The commentary listed a number of crises that the Party faces. One is the test of the Party’s ability to govern, as well as the challenge to the Party’s legitimacy to rule. Other issues include that the public lacks channels for participating in politics. The mechanism of the current market economy cannot effectively constrain the alliance between power and money. This has caused the central economic policy to be blocked when carried down to the district. A number of social ideologies collide with each other. The process of educating people on the core value system needs to be further developed and strengthened. Some Party cadres ideals and beliefs are shaky. The Party is facing a crisis in managing social crises, while social uprisings continue to increase. Finally, social distrust is emerging more and more frequently.

Source: China Review News, April 27, 2014
http://hk.crntt.com/doc/1031/4/7/9/103147969.html?coluid=151&kindid=11513&docid=103147969&mdate=0427001232

Briefings | | May 5, 2014 | Government/Politics

Global Times: The United States Jumped to the Front in the Sino-Philippine Dispute

Huanqiu (Global Times) published a commentary discussing the intention of Obama’s Asian trip. A brief summary of the commentary follows:

Obama arranged for the first stop in his four-country trip to Asia to be in Japan and the final stop in the Philippines. He had special motives for this trip: Both countries have conflicts with China on maritime issues. In recent years they have increasingly taken a hardline stance against China in their China policy, frequently creating trouble and provoking China. This has in large part catered to the needs of U.S. strategy. Obama’s trip seems to fulfill the purpose of both of them. It acts as a reward for their actions as well as an encouragement.

In the East China Sea and on the Diaoyu Islands issue, the United States is obviously partial to Japan. On the South China Sea issue, the United States’ involvement is getting deeper by the day, although it claims not to hold any position. Especially in the Sino-Philippine controversy, if there was only America’s "shadow" in the past, then clearly the United States’ "Black Hand" is intervening right now. The Philippines dares to challenge the Chinese brazenly; the United States factor behind [their action] cannot be "denied."

On the "war front" of geopolitical gaming and rule-making between China and the Philippines surrounding the South China Sea, the United States stance coincides with that of the Philippines. Both countries rely on each other, seeking to win over other countries to form "the South China Sea united front" to contain China. Especially this time when the United States and the Philippines have signed a 10-year agreement to strengthen defense cooperation, the fact that both countries share a common "imaginary" enemy has become self-evident.

Source: Huanqiu (Global Times), April 29, 2014

http://opinion.huanqiu.com/opinion_world/2014-04/4982762.html http://world.people.com.cn/n/2014/0429/c1002-24956646.html

Briefings | | May 2, 2014 | US-China Relations

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.”