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Xinhua: Bank of China Established New RMB Index

Xinhua recently reported that the Bank of China made an announcement to the world of a new index to measure the internationalization of the Chinese currency (RMB). The new index is named Offshore RMB Index (ORI). This is the second index that the Bank of China has established. Last year, the Bank announced the Cross-Border RMB Index (CRI). The new ORI is designed to reflect the offshore level of RMB volume, RMB usage, and RMB utilization by financial tools. The ORI number grew nearly two times in the past two years, showing that the RMB volume overseas has been growing rapidly. Hong Kong is the most active RMB offshore market, followed by Southeast Asia and Europe. Africa, the Middle-East, and the Americas are still seeing very limited usage of the RMB. Compared to the offshore indexes of the U.S. Dollar, the Euro, the British Pound, and the Japanese Yen, RMB ORI showed a very small percentage in the overall offshore exchange market. The Bank of China is considered the “primary channel” controlling the RMB global circulation.
Source: Xinhua, March 11, 2014
http://news.xinhuanet.com/fortune/2014-03/11/c_119720981.htm

Ministry of Environmental Protection: 280 Million Residents Drink Unsafe Water

Recently, the Ministry of Environmental Protection published results showing that there are 250 million residents who live close to areas that have industries that cause heavy pollution or areas that have heavy traffic and 280 million residents who drink unsafe water. The results also showed that the health risk to residents who are exposed to air pollution is increasing as well. The study was based on a survey done from 2011 to 2012 of 100,000 people who are from 31 cities and regions and who are 18 years of age or older.

Source: People’s Daily, March 15, 2014
http://politics.people.com.cn/n/2014/0315/c1001-24642042.html

Current Trend and Reform Challenges that the Agriculture Industry Faces

China Review News carried an article on the current trend and reform challenges that the agriculture industry faces. These include the difficulties and challenges of a more complicated environment; the demand to speed up the modernization of an industry that is driven by growth in industrialization; informatization and urbanization; meeting demands while facing the burden of environmental issues and a shortage of resources.

According to the article, the current structure of the farmers’ population has changed with the growth of industrialization and urbanization. Some farmers have chosen to relocate to urban areas while some have remained as full time or seasonal farmers. The rest have chosen to be involved in the business and service segments of the agricultural industry. The formation of the new farm structure, such as family farms and farmers’ professional cooperative units that are equipped with some level of business skill and a strong cash flow have become the new driving force behind the modernization of China’s agricultural industry. Another trend is the increase in the transfer of land-use rights to individual farmers, cooperative units, and businesses. In the meantime, due to an increase in land lease costs and the cost of raw materials, the cost of production is climbing and profits are down. The article also mentioned that the growth rate in the agriculture industry will be hard to maintain due to a reduction in farm land, extreme weather conditions, worsened insect infestation, and diseases. Meanwhile the demand in consumption keeps growing due to population size as well as increases in the industrial demand for the use of wheat and corn. The article also mentioned the phenomenon that the land quality has been deteriorating due to an overuse of fertilizer. China has 10 percent of the farm land in the world but it consumes one-third of the world’s fertilizer production. The article stated that the agriculture industry is a high risk industry due to areas such as an inadequate pricing structure; an unstable income for the farmers; recent frequent occurrences of extreme weather conditions and natural disasters; and lack of proper farmers’ insurance policies available to the farmers.

Source: China Review News, March 15, 2014
http://hk.crntt.com/doc/1030/7/3/9/103073946.html?coluid=53&kindid=0&docid=103073946&mdate=0315083230

Qiushi Theory: Clarification of Questions Relating to the System of Ideology

Qiushi Theory published an article that included clarification on 18 questions related to ideology. Below is a partial translation of the some of the questions.

As to questions about the key issues in the current field of ideology, the answer is it includes the following: the use of the West’s “democratic constitutionalism” to negate China’s political system; the use of “neoliberalism” to destroy public ownership; the use of the media having a so called “independent media view” to guide the media; the use of "universal values” to mislead people; the use “civil society” to decrease cohesiveness; the use “historical determinism” to deny the history of modern China; the use “far-left ideology” to negate reform and the open door policy.

As to the question of constitutionalism, the answer is that constitutionalism is an element of capitalism. Basically it consists of locking up power and giving the key to capitalism. It is obviously contradictory to the concept of socialism and the public will never allow it.

As to the question of “universal values,” the answer is it is a religious concept which means egoism and the elimination of different views. Recently the West has been exporting their value system to mislead the Chinese people. The real universal values are to seek truth from facts and to respect each country in walking its own unique path.

As to the question of the essence of “freedom of the press in the west,” the answer is that many people misunderstand the true meaning of freedom of the press. The U.S. often claims it has freedom of the press. The reality, however, is that it institutes tough restrictions on the media and adopts a double standard: it condemns those who do not agree with its political view and value system and uses distorted facts to protect its own rights.

As to the question of the struggle between different ideologies, the answer is that social turmoil often starts with confusion on ideology. Recently the Western anti-China forces and parties tried to stir up trouble in order to interfere with our ideology, to confuse the people, and eventually to cause chaos in China. The central administration has determined that the current ideology struggle is fierce and complicated. As patriotic netizens, we should automatically protect the safety of China’s ideology system.

Source: Qiushi Theory, March 14, 2014
http://www.qstheory.cn/zz/wwtj/201403/t20140314_330014.htm

Huanqiu Editorial: Russia Really Turns the West into a Paper Tiger This Time

The People’s Daily’s subsidiary Huanqiu published an editorial regarding the “battle” between the West and Russia in the Crimean crisis. Below is an excerpt from the article: 

Although on March 11, the U.S. Congress passed a resolution condemning Russia and called on the White House to expel Russia from the Group of Eight (G8) and implement visa and economic sanctions, the overall attitude of the U.S. and its European allies on the Crimean crisis is widely considered to be "weak." 
This time, in front of Russia and Putin, the West really is a bit like a "paper tiger." 
First, the West is afraid of Russia’s military forces. Western countries must exclude the option of war due to how super powerful Russia’s military force is while in conflict. As for other cards to play, the West also has to calculate carefully the possibility of whether it can overpower Moscow.   
Economic sanctions are not easy either. Russia’s has everything; its export goods are energy and raw materials that are in short supply. 
If the West could disrupt Russia politically, making Moscow start a "revolution," then that would be the most effective way, but Moscow’s "nationalism" (Russia believes that is patriotism) is very active. At the moment, "Democracy" is not going to win the battle. 
Finally, Moscow has accumulated more odds to win in the Crimean showdown. Whether by military or with "Democratic rule," the West will be worried about losing the tug of war in Crimea. 
Ukraine has become the frontline of conflict between the West and Russia, but it is too far away from the heart of the West and is too close to Russia’s core interests. Although Russia is much weaker than the West, when Russia really is prepared to "fight" at any price, the West exhibits fear. The West’s retreat this time is worth a global strategist’s serious study. 
In the promotion of Western political values, the U.S. and European powers are willing to pick apart their weak opponents. Once they hit a hard one, the West is not going to sacrifice itself to help non-Western countries’ "democrats." The West is selfish and constantly calculating its own interests. 
Source: Huanqiu, March 13, 2014 
http://opinion.huanqiu.com/editorial/2014-03/4900117.html

Xinhua: What Would the Collapse of the Real Estate Market Look Like?

Xinhua published an article discussing what the situation of a collapsed real estate market in China would look like. 

According the the article, “The so-called collapse of the real estate market refers to a sharp decline after a period of surging prices.” The article predicted that the housing market will decline by 30 to 50 percent. There will be far fewer buyers. Real estate will plunge into depression and even the national economy will stagnate. Banks will incur large amounts of bad debts. The article described a three stage collapse in the real estate market: housing prices will drop dramatically; after a huge rise, the stock market will plunge sharply; the number of real estate transactions will decline. 

Source: Xinhua, March 11, 2014 
http://news.xinhuanet.com/house/bj/2014-03-11/c_119701248.htm

Major General: China Needs Spending Hike to Empower the Military and Face the Increase in Pressure

On March 6, 2014, a military reporter from China Broadcasting Network interviewed Chinese congressional delegate member Major General Chen Zhou. In the interview, Chen talked about the increase in China’s military budget. 

Chen Zhou stated that China’s increase in defense spending is to make up for a serious past shortage. With the rapid development of our national economy, [China] has the strength to increase the investment in its military development. 
Chen said that China’s security environment is changing; the surrounding environment is changing; the complexity and variability of the security problems we are facing are also increasing. We face challenges safeguarding China’s sovereignty, territorial integrity, and national unity. Our surroundings are very turbulent. Some military powers conduct frequent actions in our surrounding areas. Strategic pressure is constantly increasing. In particular, our maritime security issues have become increasingly prominent. We need to increase defense spending to strengthen the development of our naval and air forces. 

Source: People’s Daily, March 6, 2014 
http://military.people.com.cn/n/2014/0306/c1011-24544144.html

Xinhua: Naked Officials and Their Fake Passports

Xinhua published an article on China’s so-called "naked officials" who have moved their spouses, children and assets overseas while they remain at home in China. 

Based on an analysis of recent cases of the "naked officials" who have fled China, there appears to be a clear path: transferring assets overseas, family members leaving China, preparing passports, make a quick fortune using their official position, resignation or disappearance, hiding in seclusion overseas, and obtaining residence in the foreign country. 
According to the article, within this chain of actions, the preparation of passports is critical. Of those "naked officials" who have been arrested on corruption charges, many owned multiple passports. Some of them used personal passports that they were not required to return to the authorities. More have used fake identification cards to obtain another passport. Because these passports are not within the scope of required approval and return, their work units cannot detect them. 
Source: Xinhua, March 12, 2014 
http://zgws.xinhuanet.com/info.aspx?id=45122&typeid=117