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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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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

Briefings | | |   Economy/Resources

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

Briefings | | |   Defense/Military

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
Briefings | | |   Social Stability

China Youth Daily: Local Government’s Opium? They Have an Addiction to Debt

On March 12, 2013, China Youth Daily published an article on the serious local government debt problems in China. Currently, China’s local governments owe 18 trillion yuan in debt. In order to pursue a higher GDP, local governments blindly borrow money without considering at all how to pay it back. Some officials said that borrowing money has become local governments’ economic opium. They wish they could stop but they cannot help borrowing more and more. According to the article, in order to help local authorities get rid of this “addiction,” it may be necessary to integrate local government’s credit rating system into cadre’s evaluation system.

Source: China Youth Daily, March 12, 2014
http://zqb.cyol.com/html/2014-03/12/nw.D110000zgqnb_20140312_1-T01.htm?fina

Briefings | | |   Economy/Resources

Huanqiu on Close Military Cooperation between China and Ukraine Since 1990s

On March12, 2014, Huanqiu republished an article originally from http://www.nnnews.net on the close military cooperation between China and Ukraine since the 1990s. However, the original article can no longer be found. For over the past 10 years, China has been at the top of the list for Ukrainian arms exports. In the 1990s, Ukraine sold China three large-scale ships. Among them was the former Soviet aircraft carrier Varyag. The Varyag has been rebuilt into today’s Liaoning aircraft carrier, China’s first aircraft carrier. Since 2006, Ukraine has also been training Chinese engineers, pilots, and navy technical experts in Ukraine. In 2009, Ukraine media admitted that Ukraine sold China four “European Bison” hovercraft.

A large number of first-class engineers in Ukraine lived in poverty after the collapse of the former Soviet Union. Through personal friendship and shared ideology and thanks to the old Sino-Soviet friendship in the Bolshevik, Mao Zedong, and Stalin era, China invited many top experts in key military technology fields from Ukraine to come to China. In 10 years, China has recruited thousands of experts from Russia and other Commonwealth of Independent States to engage in over 2000 technological projects. In 2006 alone, groups of Ukraine scientists visited China about 150 times to participate in scientific research and give lectures and there were over 2000 individual visits. Those experts were very eager to help and answer whatever questions the Chinese scholars asked because they cherished the old Sino-Soviet friendship. The current changing situation in Ukraine may affect China-Ukraine trade, especially military, cooperation. However, according to Ukraine local officials, those signed agreements have not been affected.

Source: Huanqiu,  March 12, 2014
http://mil.huanqiu.com/observation/2014-03/4897708.html    

Briefings | | |   Defense/Military

BBC Chinese: China’s Defense Budget Increased Significantly

BBC Chinese recently reported that China’s defense budget submitted to the National People’s Congress increased by 12.2 percent to US$131.6 billion. In his speech to the Congress, Chinese Premier Li Keqiang explained  that the defense budget increase was for research into new technology, high-tech weaponry enhancements, day-to-day military operations, as well as coastal and aero defense. Li emphasized the defense of China’s “marine interests” and China’s becoming a “marine power.” He also advised that China should defend “the fruits of the Second World War.” The Japanese Chief Cabinet Secretary commented on the new Chinese defense budget, saying the world is concerned about China’s [lack of] transparency on defense spending. The Chinese media argued that China’s defense budget is still far below the level of the U.S. defense budget (US$ 633 billion).
Source: BBC Chinese, March 5, 2014
http://www.bbc.co.uk/zhongwen/simp/china/2014/03/140305_china_npc_military.shtml
Briefings | | |   Defense/Military

High Ranking Official: Breaking Internet Firewall Caused More Terrorism

China.com recently reported that Zhang Chunxian, who is the Secretary of the Communist Party in Xinjiang Province, declared that technologies like breaking the Chinese Internet Firewall (also known as the Great Firewall) contribute to an increase in the number of violent terrorist attacks. Zhang, whose rank is higher than the Governor of the Province, is the chief ruler of this troubled Province that has had serious conflicts among its ethnic groups. He was making these comments in response to a question from the press asking for his opinion on the recent violent killing of 29 residents of the City of Kunming, Yunnan Province. Zhang’s comments triggered a large wave of criticism on the Chinese Internet, where millions of netizens use various tools to bypass the “Great Firewall” in order to reach international websites that the Chinese government blocks. His opinion was widely viewed as a typical evil position against freedom of speech. Per government orders, most of the websites that reported Zhang’s comments subsequently removed this news.
Source: China.com, March 6, 2014
http://news.china.com/zh_cn/focus/km31/11152138/20140306/18379374.html
http://politics.caijing.com.cn/2014-03-07/113986657.html
Briefings | | |   Social Stability

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
Briefings | | |   Social Stability