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:
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.
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:
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.
Two Constraints to Investment in Foreign Countries: Money and Insurance
On April 4, 2014, www.cnstock.com published an article on China’s overseas investments. According to the article, the amount of China’s overseas investments accounted for only 6.3 percent of global cross-border investment, while China’s principal assets accounted for only 2.3 percent of the world’s investments. Although both state-owned or private enterprises all have a strong desire to invest in foreign countries, two major constraints prevent these Chinese enterprises from increasing their investments: the difficulty in obtaining financing and in obtaining insurance to cover their overseas investments.
Source: www.cnstock.com, April 4, 2014
http://news.cnstock.com/news/sns_jd/201404/2974836.htm
People’s Daily Overseas Edition: Xi Jinping Explained Why Western-Style Democracy Is Wrong for China
On April 3, 2014, People’s Daily Overseas Edition published an article acclaiming Xi Jinping’s "Socialism Is the Only Way’ speech given in Belgium on April 1, 2014. In his speech, Xi explained that the Chinese people had “experimented with constitutional monarchy, imperial restoration, parliamentarianism, a multi-party system, and presidential government, yet nothing really worked.” “Finally, China took the path of socialism.”
The article further elaborated on Xi’s statement and explained why the Chinese Communist Party must be the only state power in China. According to the article, there is no democracy that is not class bound. Multi-party competition and free elections are games for wealthy people. The article concluded, “We should cherish our existing political system. We cannot irresponsibly conduct "political reform through trial and error."
Source: People’s Daily Overseas Edition, April 3, 2014
http://opinion.haiwainet.cn/n/2014/0403/c353596-20489564.html