Chinascope – Page 780

Beijing Joins Taipei in Criticizing Student Protesters

The students’ occupation this month of Taiwan’s parliament to oppose the government’s attempt to pass a controversial trade agreement with China is indeed unprecedented. The trade deal allows Beijing and Taipei to invest more freely in each other’s service markets. Protesters say the deal will hurt Taiwan’s economy and leave it vulnerable to pressure from Beijing, but Taipei says it will benefit Taiwan’s economy.

Beijing’s official media joins Taipei in criticizing the protesters.

People’s Daily Online quoted from the Chicago China News & Digest, a local Chinese language newspaper, which stated that the Taiwan Benevolent Association in Chicago had issued a "solemn declaration" that the recent development revolving around the trade deal turned Taiwan’s representative politics into "mob politics." Opposition parties’ politicians are using inexperienced students as a tool in a power struggle. They have trampled on democratic politics and disgraced Taiwan’s international image.

People’s Daily Online also quoted from the Taiwan based United Daily News that some Taiwanese have organized a "White Justice Alliance" and called for a street parade on March 29. The Alliance states that not everyone is against the trade deal.

[Editor’s note: The students are also concerned that the KMT has steamrolled the political system, reneging on a promise to allow a thorough review and public consultation on the terms of the deal, thus threatening Taiwan’s hard-earned democratic system.]

Source: People’s Daily Online, March 27, 2014
http://tw.people.com.cn/n/2014/0327/c14657-24752121.html
http://tw.people.com.cn/n/2014/0327/c14657-24751014.html

Briefings | | March 27, 2014 | Geo-Strategic Trend

Chinese Expert: The United States Must Give China an Explanation for Its Attack on Huawei

China’s State media started a fresh round of media attacks on U.S. Internet monitoring following Snowden’s recent disclosure that the U.S. National Security Agency invaded the headquarters of the Chinese company Huawei’s server and monitored the communications of Huawei’s senior management. One of the articles demanded that the U.S. give China an explanation of the [Internet] invasion and suggested that the Chinese government use its national power to counter the U.S. Internet infiltration activity. Below are some quotes from the article:

"This event is an alarming signal for China. The American [Internet] invasion of China, its monitoring capabilities, and the depth and scope of their infiltration are far beyond what we could imagine. Huawei is just the tip of the iceberg, just one of the victims of China’s information system penetrated by the United States. If even China’s powerful high-tech enterprises get hacked, how could China’s Party, the government, the military departments, communications, finance, transportation, energy, broadcasting, and other critical infrastructure prevent the penetration?"

"The United States made various allegations to Huawei in the past. Now it is clear that it is the thief crying out to stop the thief."

"The United States has repeatedly argued that its behavior was only to ensure national security. However, it is far beyond the scope of anti-terrorism and security. Its hypocrisy has been fully exposed. The U.S. National Security Bureau’s action against Huawei is code-named ‘attacking the Giants’ (Shotgiant). Its purpose is therefore not defensive, but offensive. It is to ‘shoot and kill’ the Chinese rapidly rising technology giant Huawei."

"Without the backing of a state’s power … Huawei and other companies would only survive in an extremely unfair development environment. This would severely restrict China’s advance to become a nation of Internet power. "

"The Chinese government should, through diplomatic, legal, public opinion, and other means, demand that the United States put an immediate stop to its intrusive actions into Chinese enterprises and infrastructures; the government should unite other countries and international organizations at different levels to exert pressure on the United States, prompting the United States to correct its behavior of breaching international norms."

Source: People’s Daily, March 14, 2014

http://military.people.com.cn/n/2014/0324/c1011-24719497.html

Briefings | | March 27, 2014 | US-China Relations

Qiushi: The Root Cause of the Chaos in Ukraine

On March 25, Qiushi published a commentary on the root cause of the chaos in Ukraine. The first reason is that “[Western] liberalism wantonly invaded [Ukraine], splitting Ukraine in the name of ‘freedom,’ and causing ordinary citizens to be unable to tell friends from foes.” The commentary also cited regional cultural differences, rampant corruption, and an unsuccessful “grafting” of the Western political system.

However, “the ultimate cause of the unrest in Ukraine is that the European Union, the United States, and Russia compete for dominance over Ukraine.” Europe, once it controlled Ukraine, it would have leverage against China and Russia. The reason the United States competes for Ukraine is to squeeze Russia’s strategic space, block the Eurasian connection, and interrupt the Eurasian Silk Road that China has proposed. With respect to Russia, if it were to lose Ukraine to the West, it would lose the largest of the countries within the Commonwealth of Independent States; it would lose its last political strategic protective buffer.

Source: Qiushi, March 25, 2014

http://www.qstheory.cn/zywz/201403/t20140325_333580.htm

Briefings | | March 27, 2014 | Geo-Strategic Trend

China’s Central Bank’s Four New Policy Characteristics

Xinhua republished an article from CNStock.com, which had reported on several major actions that China’s Central Bank has recently taken. The bank has stopped virtual credit card products, capped the amount of third party payments, and increased the volatility of the RMB exchange rate. All these show that People’s Bank of China is adopting policies to avoid innovation, reduce financial risks, and maintain the GDP level.

The article listed four new directions that the Central Bank is following:
1. Prevent financial problems and maintain the GDP level.
2. Focus on resolving financial risks and ensure that financial innovation does not create additional economic risks. The decision to stop virtual credit card products is an indication that the Central Bank would rather give up new innovation of financial products to avoid the potential risks associated with introducing innovative products.
3. Increate the volatility of the RMB exchange rate to push for the RMB’s devaluation and stimulate exports.
4. Limit the Internet purchase amount to support physical stores.

The article stated that because of item 1 and 2, the increasing trend of the RMB’s interest rate will be turned around and the cost of capital will decrease. This will lead to two results: one is to indirectly support real estate prices; the second is to limit financial innovation, which will reduce the inflow of foreign money into China.

Source:
1. CNstock.com, March 18, 2014.
http://news.cnstock.com/news/sns_jd/201403/2950773.htm
2. Xinhua, March 18, 2014.
http://news.xinhuanet.com/fortune/2014-03/18/c_126280684.htm

Briefings | | March 26, 2014 | Government/Politics

Xinhua Calls on Governments at All Levels Stay Calm as China’s Housing Prices Continue to Fall

On March 19, 2014, Economic Information, a publication under Xinhua News Agency published an article calling on governments at all levels stay calm as China’s housing prices, from the Yangtze River Delta region to the first-tier cities nationwide, continue to fall. The downturn in housing prices will inevitably have a negative impact on China’s macro-economic growth and financial stability. According to the article, the impact of the “adjustment of property markets” is still under control.

Source: Economic Information, March 19, 2014
http://www.jjckb.cn/2014-03/19/content_496046.htm
http://news.xinhuanet.com/fortune/2014-03/19/c_119831357.htm

Briefings | | March 26, 2014 | Economy/Resources

China Review News Agency: China Is Not Ready to Fully Liberate the RMB Exchange Rate in the Market

On March 26, 2014, China Review News Agency published an article on the abnormally sharp decline in the RMB exchange rate this year. In 2012 and 2013, China reduced its goal for maintaining the growth of GDP down from eight percent to seven percent. Last year, as a result, import and export businesses started to slow down. In the past, the appreciation of the RMB (the Chinese yuan) exchange rate resulted from the depreciation of the U.S. dollar. With the recovery of the U.S. economy and the appreciation of the U.S. dollar, the depreciation of the RMB exchange rate has become the trend. Since 2013, a large-scale cross-border capital flow in and out of China has been an indisputable fact. Starting on March 17, 2014, the People’s Bank of China widened the USDCNY trading band to +/-2 percent from +/-1 percent. Thus a larger-scale cross-border capital flow should happen, which may result in a turbulent foreign exchange market and volatile financial markets. Although China holds US$ 3.8 trillion in foreign exchange reserves, they are very limited as China relies more and more on importing fundamental resources from abroad.

The article concluded that excess promotion of the market-determined exchange rate mechanism may intensify the fluctuations of the interest rate in China and not benefit the stability of financial markets. China is not ready to liberate the RMB exchange rate in the market fully because the RMB interest rate and China’s price system are not market-oriented.

Source: China Review News Agency, March 26, 2014
http://hk.crntt.com/doc/1030/9/4/6/103094658.html?coluid=53&kindid=0&docid=103094658&mdate=0326071815

Briefings | | March 26, 2014 | Economy/Resources

People’s Daily: Russian Banks May Switch to UnionPay

People’s Daily recently reported that Anatoly Aksakov, Deputy Chairman of the Russian State Duma Financial Markets Committee, suggested Russian banks under U.S. and European sanction may switch to China’s UnionPay credit card system, replacing the Western payment networks such as Visa and MasterCard. UnionPay is the only domestic bank card organization in China. Established in 2002, UnionPay has grown into the second largest payment network after Visa. UnionPay is now accepted in 141 countries in the world, including United States. Visa and MasterCard stopped the payment services for two Russian banks after the sanctions imposed on Russia after its invasion of Crimea. Aksakov said that even Iran has survived the financial sanctions. Russia’s participation in UnionPay will only hurt Visa and MasterCard.

Source: People’s Daily, March 21, 2014

http://world.people.com.cn/n/2014/0321/c1002-24705197.html

Briefings | | March 25, 2014 | Geo-Strategic Trend

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.”

The CCP’s Performing Arts Troupes in the U.S.