Chinascope – Page 788

Outflow of Wealth Accelerates as More Chinese Emigrate

Xinhua recently reported on information from the annual blue book on Chinese International Migration (2014), released by the Center for China & Globalization (CCG). According to the blue book, a huge number of emigrants have left China taking 2.8 trillion yuan with them.

The blue book stated that as of 2013, emigrants to overseas had reached 9,343,000, an increase of 128.6 percent in 23 years. These emigrants brought 2.8 trillion yuan (US$46 billion) with them when they left China, thus making China the 4th largest source of emigrants.

According to the blue book, in 2011, those people who had over 6 million yuan available for investment had a total assets of 33 trillion yuan in China. Of that amount, 2.8 trillion has since been transferred out of China, accounting for about 3 percent of China’s GDP in 2011.

Hong Kong, the United States, and Canada have become the main destinations for the transfer of assets, accounting for 22 percent, 21 percent and 16 percent respectively, followed by Switzerland (9 percent), Singapore (6 percent) and Australia (5 percent).

Source: Xinhua, February 7, 2014

http://news.xinhuanet.com/house/sh/2014-02-07/c_119231579.htm

Briefings | | February 13, 2014 | Economy/Resources

China to Fund Zimbabwe’s “Comprehensive Financial Package”

The government of Zimbabwe is looking to China to help fund its $27 billion plan to rebuild its economy. The Africa Report wrote on Wednesday that this fund would be more than twice the size of the economy of the impoverished southern African nation. The five-year plan will seek to improve basic services and revitalize the slowing economy.

On February 11, Zimbabwe’s Finance and Economic Development Minister Patrick Chinamasa and the Chinese Ambassador to Zimbabwe Lin Lin had signed the deal in Harare. As reported in People’s Daily, it included the loan amount of $23 million earmarked for the construction of clinics, primary and secondary schools in resettled areas acquired under the land reform program, as well as boreholes drilling and acquiring meteorological equipment.

Not revealing details, Chinamasa, who visited Beijing last month, said, "The government of the People’s Republic of China and the government of Zimbabwe are working towards a comprehensive financial package. (We) have committed ourselves to finalizing the matter within three months."

Zimbabwe had not been able to obtain funds from western governments and funding institutions such as the World Bank, as it had previously failed to repay billions of dollars in debt. Since 2005, the nation has adopted a “Look East” policy as a result, relying increasingly on emerging Asian economies to offset sanctions from traditional Western partners, People’s Daily reported.

China, on the other hand, is interested in the rich mineral resources in Zimbabwe, including the world’s second largest reserves of platinum, huge deposits of gold, alluvial diamonds, coal, and chrome. China had previously loaned nearly $700 million to Zimbabwe, in March 2011, the biggest package to date. In addition, last November, China’s Export Import Bank agreed to lend Zimbabwe $320 million to expand its Kariba hydro-power plant.

Source: BBC Chinese, February 11, 2014
http://www.bbc.co.uk/zhongwen/simp/china/2014/02/140211_zimbabwe_china.shtml

Briefings | | February 12, 2014 | Geo-Strategic Trend

Wu Jinglian: Chinese Economy This Year Will Face Difficulties

At the annual conference of Chinese Economists forum 50, Wu Jinglian, a prominent economist and a fellow at the Development Research Center of the State Council, expressed his view that China’s economy in 2014 will face difficulties and that what’s most important is to let the market play a decisive role in allocating resources. Wu believed that the debate around whether real estate is a "pillar industry" is by itself planned economy thinking. If the central bank continues to print money, housing prices will continue to climb. Wu noted that a very important aspect of furthering the reform is to prevent the outbreak of systematic risks. Regarding the local governments, he believes that the transition of their functions involves a lot of personal power and interests. Wu said that China’s economy this year will face difficulties because many problems, accumulated over the decades, need to be sorted out and resolved. For state-owned enterprises (SOE) reform, Wu believes it is important to pay attention to "near-death" enterprises, as a large number of highly indebted SOE’s still rely on subsidies to survive.

Source: Xinhuha, February 11, 2014
http://news.xinhuanet.com/2014-02/11/c_126111686.htm

Briefings | | February 12, 2014 | Economy/Resources

The Confucius Institute at the University of Sheffield

The following is from a recent Xinhua report about the Confucius Institute at The University of Sheffield, UK.

"In 2004, the first Confucius Institute was set up. Along with the development of China, within just ten years, Confucius Institutes and Confucius Classrooms have emerged all over the world. Data shows that, as of now, 120 countries and regions on five continents have established 440 Confucius Institutes and 646 Confucius Classrooms, with 850,000 registered students."

"The management and operations of the Sheffield Confucius Institute at the University of Sheffield, UK is a cooperation of the University of Sheffield, the Beijing Language and Culture University, and Nanjing University. For nearly seven years, it has been an important center for the Chinese and English languages and cultural exchanges in the central and northern UK."

Zhao Xia, the Director of the Sheffield Confucius Institute and a Lecturer at the School of East Asian Studies of the University, stated, "We have partnered with the Sheffield City Council to organize three ‘out of the bookshelf’ Literary Festivals. We have also collaborated with the Sheffield City Department of Children and Family Services to hold Chinese traditional festivals and cultural activities at 26 libraries. Meanwhile, a number of activities and projects have been initiated, such as the Chinese New Year Painting Competition, the Chinese style photo contest, and library activities." In 2013, the Sheffield Confucius Institute held 149 cultural activities, reaching 18,000 people."

Wang Zhimin, Deputy Director of the Institute and a Professor from the Beijing Language and Culture University, added, "The Confucius Institute offers an opportunity for many Western students to understand Chinese culture and get in touch with Chinese music, movies, and other art forms." "China’s development supports and needs the global promotion of Chinese culture. We should be mindful of the current situation and fulfill our historic mission."

Source: Xinhua, February 10, 2014
http://news.xinhuanet.com/2014-02/10/c_119264730.htm

Briefings | | February 12, 2014 | Geo-Strategic Trend

Netease: EU Parliament Asked for Drastic Measures against Chinese Dumping

The well-known Chinese online news site Netease recently reported that the European Parliament officially urged EU trade officials to apply “drastically tough measures” against the low-price dumping strategy used by many of the Chinese exporters. EU Trade Commissioner Karel De Gucht is seeking amendments to the tools that are currently available to fight unfair trade. These tools were designed before China became a large exporter. The EU Parliament expected the new tools would be able to arm the small-sized EU companies to fight unfair trade behavior such as pricing goods below cost. Although the newly proposed regulations did not mention China, yet most of the trade conflicts that the European Union is suffering from are between the EU and China. The current daily China-EU trade volume is more than one billion euros. The potential retaliation from trade partners is still a big concern on the EU side. Karel De Gucht is calling for serious consideration of fairness and balance.

Source: Netease, February 6, 2014

http://money.163.com/14/0206/15/9KDKJOH600252C1E.html

Briefings | | February 11, 2014 | Geo-Strategic Trend

CRN: China’s Macroeconomy Faces Three Major Risks

China Review News (CRN) recently published a commentary analyzing the “cyclical fall back” of the Chinese macroeconomy as well as the much needed structural adjustments. The commentary focused on the “imbalance risks” and identified three major ones: 1) The volume of China’s exports is not in sync with the trend of the global economic recovery. The author expressed the belief that this was caused by the rebound in U.S. manufacturing, the increased costs in Chinese manufacturing, the appreciation in China’s currency, competition from other emerging economies, and new international trade agreements in which China does not participate. 2) China’s domestic economy suffers a significant imbalance between the real economy and the virtual economy. The financial industry and the housing industry are the primary contributors to economic growth, while the manufacturing industry is seeing minimal profits. 3) China’s actual interest rate is moving in the opposite direction from that of the global interest rate. While most of the countries in the world are maintaining zero or near-zero interest rates, China’s actual interest rate is growing rapidly. This significantly increases the cost of financing. Government branches, companies, and financial organizations are suffering from across-the-board debt increases.

Source: China Review News, February 7, 2014

http://hk.crntt.com/doc/1030/1/0/4/103010469.html?coluid=53&kindid=0&docid=103010469&mdate=0207092022

Briefings | | February 11, 2014 | Economy/Resources

Migration Due to Climate Change Is Rising among Wealthy Chinese

Guangming Daily reprinted an article which the Economic Observer had originally published on the increase in migration due to climate change in China, a phenomenon that is expected to have a major impact on China’s future social structure. According to the Blue Book of Global Talent, co-published on January 22, 2014, by the Center for China and Globalization and the Chinese Academy of Social Sciences, in 2013, the deteriorated environment has been the main reason driving the migration of the elite and the middle class population in China. The article attributed the major cause of the environmental issues to the extensive economic growth, massive urbanization, and the mismanagement of social issues.

The article indicated that, as millions of farmers have moved to the city to seek job opportunities, urban residents have begun to feel uneasy about air pollution, crowded traffic, an increase in living costs, and other living pressure. In the past two years, weather was the most popular topic among the Chinese people. In 2013 large scale grey smog caused frequent red alerts to be issued in regions such as the Yangtze River delta, northeastern China, Beijing, Tianjin and the Shandong region. The first climate change migration started in large size cities two years ago. Migration routes were divided into two areas: to overseas countries for “clean air” or to regions in China that are still less polluted. The article said that the newly migrated population will drive the local economic development in the new regions but it will also cause conflicts with the local residents in the areas of transportation, education, commodity prices, and real estate markets. It may even cause conflicts in culture and social habits. The article pointed out that, “Many local governments are not prepared to face the large inflows of these immigrants.” “They don’t know how to deal with the delicate relationships, which could be a hidden cause for future conflicts.”

Source: Guangming Daily, February 9, 2014
http://edu.gmw.cn/2014-02/09/content_10313690.htm

Briefings | | February 10, 2014 | Social Stability

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.