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Sina Finance: Chaori Solar Corporate Bond Defaulted

The well-known Chinese financial news website Sina Finance recently reported that Shanghai Chaori Solar Technology Corporation officially defaulted on a payment on its corporate bonds. The Chaori board of directors announced on March 4 that the company is not able to make the interest payment on its 2011 Phase II corporate bond. This is the first official default on a Chinese corporate bond. The market is very much worried that this may cause a chain reaction because Chaori is a typical case that represents the situation that many other Chinese corporate bonds share. Chaori is a large privately owned company focused on solar-based products mainly exported to the U.S. market and Europe. The company suffered a loss of over RMB 1 billion (around US$163 million) in 2013. It can only come up with RMB 4 million for the above mentioned corporate bond interest totaling nearly RMB 90 million yuan. The company stock will be delisted from the Shanghai Stock Exchange in a few months.
Source: Sina Finance, March 4, 2014
http://finance.sina.com.cn/money/bond/20140304/231518403596.shtml

SOEs Can Recover and Be Sustained through Consolidation and Diversified Ownership

According to People’s Daily, the recent talks that both Xi Jinping and Li Keqiang gave indicate that the central administration still places the reform of SOEs (State Owned Enterprises) as its top priority in the overall progress of reform. As can be seen in the Report on the Work of the Government given by Li Keqiang, the words “reform of SOEs” were mentioned 77 times. In his speech, Xi Jinping stressed that the SOEs shall continue to improve and reform can occur more quickly. The article said that the central administration will introduce a measure called the “diversified ownership concept." The non-SOEs can invest in SOE projects in areas such as finance, oil, electrics, railroads, telecommunications, energy development and public services. In the meantime, non-SOEs will be issued a permit to operate in certain SOE fields. The article said that, currently, the State-owned Assets Supervision and Administration Commission of the State Council, local governments, and SOEs are working closely to develop a plan.

Source: People’s Daily, March 9, 2014
http://finance.people.com.cn/n/2014/0309/c1004-24579745.html

People’s Daily: Physical Condition of China’s Youth Has Declined Steadily over the Past 25 Years

People’s Daily recently published an article stating that the average height of Chinese males between 7 and 17 years of age is 2.54 cm (1 inch) shorter than males in Japan and Korea. It also reported that the physical condition of Chinese youths has worsened steadily over the past 25 years. Wu Zhenxian, deputy to the People’s Congress and a teacher from Beijing who holds the distinguished teacher’s title raised the concern. According to Wu, based on the results of a physical examination of students from Beijing High School in 2012, the physical condition of the youths in strength, speed, and endurance has declined while near-sightedness and obesity rates have increased. Results showed that only 10 percent of the students passed the test. In the meantime, schools are concerned about the potential liability caused by injury due to physical activities. Wu is calling for safety regulations to be established to protect both students and schools from liabilities due to such injuries. Wu also mentioned that Beijing is facing a severe shortage of teaching resources where elementary schools face a 47 percent shortage and the shortage in middle schools is at 68 percent. She is asking colleges to train more teachers and the Ministry of Education to loosen up restrictions on the quota for teachers from outside of Beijing to join the teaching workforce in Beijing.

Source: People’s Daily, March 7, 2014
http://world.people.com.cn/n/2014/0307/c1002-24555332.html

Committee Delegates: College Graduates Do Not Meet Existing Job Requirements

Xinhua carried an article that was originally published by Beijing News. The article covered the group discussion among the conference delegates during the 2nd session of the 12th CPPCC (Chinese People’s Political Consultative Conference National Committee) on the gap between job requirements and the skill level of China’s college graduates. A scholar from the Chinese Academy of Science even stated that there is not much difference between the current college graduates with master’s degrees versus those technical school graduates from a number of years ago. Some delegates observed that the quality of the graduate students continues to decline. They are weak in overall skills, inter-personal relationships, hands-on experience, and the ability to deal with stress, as well as in job related fundamental theory. The statistics from a recent job fair in Jiangying City suggested that society has a tendency in general to pursue higher education. Therefore, there is a serious shortage of workers with technical skills, while the college graduates face a tough job market. Many college graduates have had to take low paying positions. Meanwhile they tend to have high expectations for a job and are unable to handle the workload they are assigned. Some delegates blamed the companies for not holding job training classes while some said that universities don’t offer courses that prepare students for the job market and are not well connected with the companies that need employees.

Source: Xinhua, March 9, 2014
http://news.xinhuanet.com/politics/2014-03/09/c_126239703_2.htm

Huanqiu Editorial: Chinese Media Should Make a Greater Effort to Support Russia and Putin

Huanqiu, a state-run media under People’s Daily, published an editorial commenting on China’s position regarding the ongoing Russia-Ukraine conflict. Below are some quotes from the article:

 
“While the Chinese Government is playing the necessary balance of diplomacy in the Ukrainian situation, the Chinese media have been freely discussing the development. Most stand on the Russian side. Their opinions regarded Russia’s move as a reaction to how the West has, over the long-term, been squeezing Russia.” 

“We tend to agree with the public opinion that supports Russia. The reason is that the Russian resistance to the Western forces moving Eastward in Ukraine is not only related to the fate of Russia itself, but also directly related to China’s major strategic interests. We often regard North Korea as a buffer force against the U.S. and Japan. The effect is actually very limited because North Korea is too small. Today, Russia and China will constitute a genuine mutual strategic buffer to enable China’s ascent. If the West were to crush Putin’s Russia, it would be an extremely heavy blow to China’s geopolitical interests.” “Looking at the world today, Russia is our most worthy partner in developing comprehensive strategic cooperation. At least in the coming decades, no one will be able to replace Russia in its strategic importance to China.”

“Putin taught the color revolution a lesson. Russia’s resistance to the West, which Putin has led, has global significance. China does not have to worry that being on Russia’s side will damage our relations with Ukraine. In fact, that concern is unnecessary. Supporting Russia is consolidating China’s grand strategy. As long as the grand strategy is stable, many other bilateral relations will not be a problem.”  

Source: Huanqiu (Global Times), March 5, 2013 
http://opinion.huanqiu.com/editorial/2014-03/4878080.html http://world.people.com.cn/n/2014/0306/c1002-24543884.html  

People’s Daily on Ukraine: Be on Guard against the Trap of Democracy

On February 28, 2014, People’s Daily published a commentary on the recent political events in Ukraine, titled “Be on Guard against the Trap of Democracy and Loss of Control.” 

“Acclimating to something alluring could not possibly be the life-saving magic that would bring a country onto a path of smooth development. A country would have no way out if it gave up exploring its own development path.” 
The article commented that, although the bloodshed in Ukraine has ceased, the country is in a total chaos without any control from its government. Ukraine is not alone. “Street riots, social chaos, economic depression and government paralysis have occurred repeatedly in countries in Southeast Asia, West Asia and North Africa. Different and diverse as the unrest is in each of these countries, the underlying reason is the same: a reckless choice of a development path has pushed the country into the trap of democracy. 
Source: People’s Daily reprinted by Huanqiu February 28, 2014. 
http://china.huanqiu.com/politics/2014-02/4866551.html

IHL: Why Does the U.S. Maintain a Weak Army?

The International Herald Leader published a commentary on U.S. Secretary of Defense Hagel’s announcement about a reduction of forces that would cut Army personnel by over 70,000 starting in 2015. 

“First, the U.S. Army cut shows that, for a long period of time, the U.S. military will give up massive ground wars outside of its territory.” 

"For China, the U.S. Army’s cuts raise more concerns.” A reduction or giving up a massive ground war in the Asia Pacific region means that “the U.S. will not hesitate to adopt Air Sea warfare as well as other more subversive forms of combat. Instead of combat that would involve a large number of troops, it will adopt air raids, sea and air strangulation, cyber-attacks, propaganda, diplomatic alliances, economic sanctions, and other ‘combined’ means to weaken the opponent’s combat capability; it will try to achieve maximum advances quickly, with minimum or even ‘zero’ casualties.”

“While reduced in forces, the U.S. military will, on the other hand, tighten its fists. China cannot take it lightly and should remain vigilant.” 

Source: International Herald Leader, March 3, 2014                                                       http://ihl.cankaoxiaoxi.com/2014/0303/354514.shtml

China to Complete Beidou Global Navigation System in Six Years

Yang Yuanxi, an academician from the Chinese Academy of Sciences, said in an interview that China has successfully launched four Beidou experimental satellites and 16 Beidou navigation satellites, with the second stage of the Beidou Navigation Project – Beidou satellites regional networking – successfully accomplished. The level of the accuracy of the Beidou system in the Asia-Pacific region is no worse than the Global Positioning System (GPS), said Yang. He suggested that China accelerate the formulation of relevant industrial policies to improve the navigation industry and guide its orderly development.

Yang said, from the completion of the experimental system of Beidou in 2000, to official provision of continuous positioning, navigation, timing, and other services in the Asia Pacific region by the end of 2012, it took only a dozen years for China to join the club of only four major satellite positioning and navigation systems in the world. It is planned that around 2020, China will complete the Beidou global satellite navigation system of geostationary orbit satellites and 30 non-geostationary satellites, offering complete coverage with high-precision, highly reliable positioning navigation services.

Source: Xinhua, March 4, 2014
http://news.xinhuanet.com/info/2014-03/04/d_133158767.htm