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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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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

Briefings | | |   Geo-Strategic Trend

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

Briefings | | |   US-China Relations

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
Briefings | | |   Economy/Resources

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

Briefings | | |   Economy/Resources

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

Briefings | | |   Government/Politics

Global Times: Chinese Bank Loan Write-Downs Increased Significantly

Global Times recently reported that the five largest banks in China had a 127 percent increase in loan write-downs last year. This demonstrated a clear slow-down in growth with high pressure in the financial sector. These five banks own more than half of all of the loans in China. They wrote down a total of RMB 59 billion (around US$9.5 billion) worth of loans that would never be paid back. This level of write-downs is also the highest in ten years. In addition to the dramatic number of loan write-downs, in March, the Chinese financial market also suffered the first default in the corporate bond segment, two instances of near-default “shadow bank” investment products, as well as a run on the bank in Jiangsu Province. Data also showed that the first quarter economic slow-down turned out to be more severe than expected, which may indicate the slowest year of growth for the Chinese economy since 1990.
Source: Global Times, March 31, 2014
http://finance.huanqiu.com/view/2014-03/4942861.html
Briefings | | |   Economy/Resources

Xinhua: Peruvian Government Called Temporary Halt to CHINALCO Copper Project

On March 31, Xinhua reported that the government of Peru has recently shut down a China Aluminum Corporation (CHINALCO) copper mine development project temporarily, citing environmental violations. CHINALCO controls the Toromocho Copper Mine located in central Peru. The development is to construct one of the largest copper mines in the world, with the level of its capacity at 10-million tons. The Toromocho project is also China’s largest copper project overseas. The Peruvian environmental protection agency OEFA ordered the temporary shut-down due to the fact that the copper waste being discharged into the nearby lakes violated environmental protection codes. This was discovered around mid-March. The CHINALCO spokesperson refused to confirm the news because of the “lack of details.” China Aluminum Corporation is a multinational aluminum company headquartered in Beijing. It is the world’s second largest aluminum producer (and the only producer in China).
Source: Xinhua, March 31, 2014
http://news.xinhuanet.com/fortune/2014-03/31/c_126334845.htm
Briefings | | |   Geo-Strategic Trend

HSBC’s March Chinese Manufacturing PMI Reached Eight-Month Low

Well-known Chinese news site NetEase recently reported that the newly released HSBC March Chinese Manufacturing PMI (Purchasing Managers Index) number showed an eight-month low, at 48.0. The Manufacturing Output sub-index reached 47.2, which is the lowest it has been in 28 months. The sub-indexes for New Orders, Import Prices, and Export Prices fell to 46.5, 46.8 and 40.7, respectively. Qu Hongbin, the HSBC Chief Economist for the China Region, commented that the Chinese manufacturing PMI confirmed a very weak domestic demand level. He expected first quarter GDP growth to be slower than the annual goal, set at 7.5 percent. HSBC expressed the belief that the Chinese authorities will start economic policy adjustments sooner rather than later. PMI is an indicator of financial activity reflecting the purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: Netease, April 1, 2014
http://money.163.com/14/0401/09/9OO4GBUF00253B0H.html
Briefings | | |   Economy/Resources