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Xinhua: China Can Only Choose to Fight Back When Faced with U.S. Military Deterrence

Xinhua republished a commentary article originally from China Review News, a pro-Beijing media located in Hong Kong, with the title “China Can Only Choose to Fight Back When Faced with U.S. Military Deterrence. “Below is an excerpt from the article: 

“Following the United States’ strengthening of its military deployment in the Asia-Pacific region, China has strengthened its military presence in the region. The U.S. has accused China’s military action of being military coercion. 
“As we all know, after proposing its rebalancing strategy in the Asia-Pacific in 2012, the United States adopted a series of measures to strengthen the U.S. military presence in the Asia Pacific region. The United States also enhanced its deterrence efforts against China by improving the military forces of countries that have maritime territorial disputes with China, such as Japan, the Philippines, and Vietnam. The United States also gathered related countries in the South China Sea and the East China Sea to conduct ever expanding joint military exercises. These U.S. practices have been a serious threat to China’s homeland security. It is an indisputable fact. 
“When faced with such U.S. military deterrence, China has no alternative but to choose to fight back. Whether China announces in high profile the establishment of maritime power, gradually increases its defense force in the South China Sea and the Diaoyu Islands, holds joint naval exercises with Russia, or establishes an air defense identification zone, China has to deal with the U.S. military deterrence using its own way. From this perspective, it is because of the U.S.’s military buildup in the Asia Pacific and engaging in an arms race with related countries that China has been forced to increase the strength of its military power.  
“The U.S. accuses China of military coercion in the South China Sea and the East China Sea, but the intensification of the South China Sea and the East China Sea disputes are, to a large extent, all related to the United States’ fanning the flames [in the region]. Since implementing the strategy of returning to the Asia-Pacific, the U.S. has sharply increased military aid to the countries that have maritime territorial disputes with China. Also, regarding these disputes, the U.S. does not advise these countries to [resolve the dispute], but groundlessly accuses China of ‘displaying a tough stance.’ This attitude will only encourage the related countries to increase their determination against China and make the problem of territorial disputes more complicated. The security situation in the Asia-Pacific is getting worse. 

"The United States’ approach, however, may bring another possibility: China will become more determined and stronger, increasingly deviating from the United States’ envisaged development track.” 
Source: Xinhua, January 17, 2014 
http://news.xinhuanet.com/mil/2014-01/17/c_126021305.htm

China’s Unprecedented Internet Mishap Due to Malfunction of Domain Name Root Servers

On January 21, at around 15:20, China’s entire top-level domain name root servers (DNS) malfunctioned, leaving two-thirds of China’s websites inaccessible and “causing severe damage to China’s Internet.” 

Internet users found themselves re-directed to IP 65.49.2.178 [a U.S. website]. The malfunction lasted until 18:30 when visits to most of the .com websites had been restored. 
The state-run China Internet Network Information Center (CNNIC) earlier said in a microblog post that the incident was due to a malfunction in China’s top-level domain name root servers and that the incident had no impact on .cn which functioned properly throughout the incident. 
Sources: 
Nanfang Daily, January 22, 2014 
http://epaper.nfdaily.cn/html/2014-01/22/content_7269197.htm 
Xinhua, January 22, 2014 
http://news.xinhuanet.com/fortune/2014-01/22/c_119082541.htm

Qiushi: The Values Freedom, Democracy, Equality, and Rule by Law Are Different in China

On January 16, 2014, Qiushi, a theoretical journal of the Chinese Communist Party Central Committee, published an article denying the existence of any “universal values.” Although the Chinese Communist Party also advocated “freedom,” “democracy,” “equality,” and “rule by law” in its report issued at the recent 18th National Congress of the Chinese Communist Party, the interpretations of these four values are different in nature from the “universal values” in the West.

According to the article, the people of China enjoy complete equality in economic, political, social, cultural, and other aspects rather than just the periodic “voting rights” in the Western countries. Socialist democracy and justice in China allow the Chinese people to be the real masters of the nation, while democracy and justice in the Western countries just represent a rotation of power between bourgeois parties.

Source: Qiushi, January 16, 2014
http://www.qstheory.cn/zxdk/2014/201402/201401/t20140114_312584.htm  

People’s Daily: CAS Released New Operating System

People’s Daily recently reported that, on January 15, the Software Research Institute of the Chinese Academy of Sciences (CAS) announced the availability of the China Operating System (COS). CAS fully owns the intellectual property of the new operating system, which is deigned to “break the monopoly” currently enjoyed by foreign operating systems such as those made by Microsoft, Apple, and Google. Due to the various security issues that open source operating systems have, the COS is designed to be “closed-source” in order to offer better security. The new operating system is aimed at all market segments including personal computers, hand-held devices, set-top boxes, and “smart” appliances. The COS claims to be built from the ground up, without any dependency on any other operating systems. Although hundreds of millions of Chinese end-point machines are currently running “foreign” operating systems, the Chinese Academy of Sciences is determined to face the challenges and join the competition against the international mainstream.
Source: People’s Daily, January 16, 2014
http://gd.people.com.cn/n/2014/0116/c123932-20406940.html

Netease Financial: ICBC Stock Fell below Net Asset Value

Netease Financial, a well-known Chinese online financial news site, recently reported that the stock value of the Industrial and Commercial Bank of China (ICBC) fell below the Bank’s net asset value on January 15. ICBC ranked number one in China’s banking industry in terms of corporate loans and corporate deposits and Euromoney named ICBC the “Best Bank in China.” Ninety percent of the publicly traded Chinese banks are now suffering below net asset market prices. At the same time, 143 companies listed on the Chinese stock market fell below net asset value. Based on the outcomes of the recent central government audit reports, local government debts are at all-time highs. Most of them were funded by state-owned commercial banks. It seems the landslide of the banking industry’s stocks has not ended yet. 
Source: Netease Financial, January 15, 2014
http://money.163.com/14/0115/15/9IL0MURF00251LJJ.html

Study Times: How to Improve China’s Global Influence

The Chinese Communist Party Central Party School’s magazine, Study Times, recently published an article discussing how to enhance the power of China’s global influence. The article set a two-step goal for the Chinese economy: to catch up with the United States in the total volume of its economy within fifty years and to surpass the U. S. in per-person average GDP in another fifty years. To achieve these goals, the author offered a four-point strategy: 1) To push the construction of a green economy, which will solve the issue of resource constraint and achieve sustainability; 2) To push the reform of China’s income structure to achieve more fairness in the distribution of wealth; 3) To push innovation-driven growth to take advantage of a wiser population; 4) To construct a strong financial system, aimed at the U.S. dollar, the U.S. central bank, and the highly efficient U.S. financial market. The author concluded the article by calling for a stronger leadership of the Communist Party to lead the nation to the new global high ground. 
Source: Study Times, January 13, 2014
http://www.studytimes.com.cn/shtml/xxsb/20140113/3729.shtml

The Number of Chinese Bloggers Declines

According to the China Internet Network Information Center’s annual report issued on January 16, 2014, there has been an overall decline in the use of such social media as weibo (microblogging), social media websites, and forums. In particular, the number of weibo users declined by 27.83 million users compared to the 2012 end of year statistics. The instant mobile messaging services showed an increase, reaching 532 million users. 

According to Sina back in November 2013, it closed about 100,000 weibo accounts because they were in violation of the “seven bottom lines” – the law and regulations, the socialist system, the national interest, citizens’ legitimate rights and interests, the social and public order, morality, and the information’s authenticity. 
Sources: 
Xinhua, January 16, 2014 
http://news.xinhuanet.com/2014-01/16/c_119000678.htm 
Radio Free Asia, January 16, 2014 
http://www.rfa.org/mandarin/yataibaodao/meiti/nu-01162014112625.html

Chinese Bank Deposits See Transfers

According to Xinhua, the China Banking Regulatory Commission is considering accelerating the introduction of bank insolvency regulations. Its official, Yan Jingmin, stated, “In the future, let capital speak. If a commercial bank cannot maintain solvency, it will exit.” 

“To allow banks to go bankrupt means the State will not cover the deposits of customers in commercial banks [when the bank goes bankrupt],” added Xinhua. The invisible guarantee by the credit of State will end. The depositors would be compensated by the insurance mechanism established in the bank insolvency regulations. 
It was further reported that under the proposed insurance mechanism, the maximum compensation to depositors would be 500,000 yuan. In a panic, Chinese depositors have started to transfer their money in excess of 500,000 to different banks. 
Sources:
Xinhua, January 15, 2014 
http://news.xinhuanet.com/fortune/2014-01/15/c_126006365.htm 
Jinghua Times reprinted by People’s Daily, January 16, 2014 http://finance.people.com.cn/bank/n/2014/0116/c202331-24133060.html