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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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Qiushi: Central and Local Administrations to Start Repositioning Their Authoritative Power

Qiushi published an article on the new move to reposition the authoritative power between the central and local administrations. The article stated, “This move is needed in order to fully mobilize the initiatives emanating from both the central and district administrations. While the central administration needs to minimize its micro control of those local affairs that are of a smaller scale, it should also strengthen its macro management power and exercise strict supervision over the local districts. On the other hand, the local administrations should increase their sense of unity as a nation while actively defending the authority of the central administration.”

The article said that the relationship between central and local administration has always been a delicate issue. In the recently published “Decision on Major Issues Concerning Comprehensively Deepening Reform in Brief,” a number of areas examined the relationship between the two.

The article also discussed and listed examples of how to implement the measures in areas such as finance and legal and municipal debt management, as well as how to maintain a good balance of power between the central and local administrations.

Source: Qiushi Theory, January 2, 2014
http://www.qstheory.cn/zz/jsfwxzf/201401/t20140102_308766.htm

Briefings | | |   Government/Politics

Minister of Public Security Demands Absolute Loyalty, Purity, and Dependability from Armed Forces

On January 4, Guo Shenkun, China’s Minister of Public Security, attended and spoke at a conference held for the Party committee of the armed forces. Guo urged that the armed forces must further implement the key elements from the talks and messages that Xi Jinping has given, constantly place political ideological development at its core and actively maintain absolute loyalty to the Party, as well as purity and dependability.

Source: China Review News, January 4, 2014
http://hk.crntt.com/doc/1029/6/1/6/102961664.html?coluid=151&kindid=0&docid=102961664&mdate=0104191300

Briefings | | |   Government/Politics

People’s Daily Opens Special Column to Expose Japan’s Militarism, Invasiveness, and Destruction

In its January 5 edition, People’s Daily initiated a special column on its third page to “expose Japan’s militarism, its invasiveness, and its destructive nature.” The column consists of articles on the history of Japan’s war of aggression and expansion during the Second World War. In the opening remarks, the column stated that Japan’s Prime Minister Shinzo Abe’s recent visit to the shrine that honors soldiers including war criminals during the Second World War is a clear signal that he intends to revoke the historic facts. It identifies that action as a part of the Abe administration’s political moves and observes that Japan has no intention of improving its relationship with its neighboring countries.

Source: People’s Daily, January 5, 2014
http://world.people.com.cn/n/2014/0105/c1002-24024362.html

Briefings | | |   Geo-Strategic Trend

Xinhua: Abe Enshrines the “Ghosts;” Japan and U.S. Play Duet again

Shortly after Japanese Prime Minister Abe’s visit to the Yasukuni war shrine on December 26, Xinhua wrote a commentary on the visit. Below is an excerpt from Xinhua’s commentary:

The Japanese Prime Minister’s “out of line” action was premeditated. It indisputably shows that the Japanese right-wing militarism has a deep root and has a big market. There are two main reasons for this: 
First, Japanese society has been making a right turn. Its purpose is, through wiping out the history of aggression and revising the pacifist constitution, to remove the hat of being the defeated nation and get rid of the shackles of the post-World War II international order so that it can become a "normal state" with the ability to develop a regular army, send troops overseas, and realize the goal of being a "big political power." 
Military expert Peng Guangqian said, "In the past (many) think there were only a handful of Japanese right-wingers, but the facts show there are a large number." 
Zhang Huanli, a researcher from the International Affairs Institute of Xinhua News Agency and a senior reporter residing in Japan for many years, said, "China has always advocated ‘Sino-Japanese friendship,’ and ‘good-neighborliness.’ The Japanese did not believe in this. [We] must be realistic and carefully look at the real Japan.” 
Second, the United States has shifted its strategic center eastward. Japan believes that this is an opportune time. As America’s most effective ally, Japan diligently collaborates with the United States, strengthens the Japan-U.S. alliance, and vigorously promotes the policy of containing China. It shows an unprecedented tough diplomacy toward China and carries out military deployment and exercises against China. 
Although the United States expressed disappointment following Abe’s enshrining the "ghosts," anyone with a clear mind can see that the U.S. and Japan are actually “singing a duet.” 
Source: Xinhua, December 29, 2013 
http://world.people.com.cn/n/2013/1229/c1002-23969901.html
Briefings | | |   US-China Relations

Vice Minister of Finance: Current Economy Unsustainable

Wang Baoan, Vice Minister of Finance, wrote an article at Qiushi on challenges the China’s economy faces. He summed up the problems into “four highs” and “four lows:” high input, consumption, pollution and speed; and low output, efficiency, efficacy and tech content. 

Wang wrote, “The ‘current version’ of China’s economy is unsustainable.” He cited a few examples to support his conclusion. China’s use of resources is inefficient. The energy consumption of the gross domestic product (GDP) is 2.6 times the world average. The GDP per capita is only 21 percent of the U.S. and 32 percent of Japan. One U.S. dollar increase in GDP needs five U.S. dollars in investment. “This growth relying on and supported by investment is unsustainable.” 
Other examples include excess production capacity in steel, flat glass and shipbuilding. The excess capacity in solar photovoltaic modules and wind power equipment hit over 40 percent. Commenting on lack of innovation in China, Wang wrote, “When one fish died in the pond, it is an accident. If the majority of the fish died, it indicates that water is the problem.” 
Source: Qiushi, January 1, 2014 
http://big5.qstheory.cn/zxdk/2014/201401/201312/t20131230_307459.htm
Briefings | | |   Economy/Resources

China Changes to Two-Child Policy

On December 30, Xinhua released the full text of a directive issued by the China Communist Party Central Committee and State Council on changing the one-child policy to a two-child policy. 

According to the directive, if a spouse is the only child, the spouse may have two children.  This change to the two-child policy will, among other things: 
(1) “Help to sustain healthy economic development. At present, China’s low birth rate has declined steadily; the total working-age population for 15 to 59 year old has been decreasing; the average age of the labor force continues to increase. The aging of China’s population has been accelerating and the aging trend is obvious.” 
(2) “Help to bring family happiness and social harmony. In recent years, with structural diversification, the family size has been shrinking; one-child families and elderly people living alone are on the rise; births, support to the elderly, and other basic functions of the family have been weakened.” 
(3) “Help to promote the balanced long-term development of the population. In the early 1990s, China became one of the low birth rate countries. With economic and social development, improvement in the level of urbanization, and a change in the public attitude toward childbearing, women now have fewer total births.” 
Source: Xinhua, December 30, 2014 
http://news.xinhuanet.com/politics/2013-12/30/c_118770640.htm
Briefings | | |   Government/Politics

China’s Local Government Debt Climbed to 17.9 Trillion Yuan

China’s National Audit Office (NAO) announced on Monday that, by the end of June 2013, local government debt had increased to 17.9 trillion yuan, soaring 67 percent over the figure for three years ago.

According to the NAO’s last figure, for the end of 2010, the total debt of local governments in China was 10.7 trillion yuan. China’s local governments cannot borrow directly from banks. Their debt is built up mainly by establishing some financial entities and using these entities to borrow money for infrastructure projects. Government debt also includes financial guarantees for some projects.

If the debt of the central government is included, the Chinese government’s overall debt is 30.3 trillion yuan, accounting for 53.3 percent of GDP. Some analysts worry that the economic slowdown could lead to an increase in bad debts, thus putting pressure on large state-owned banks. The NAO report also points to an over-reliance on land related fiscal revenue as a cause of the rapid increase in local government debts.

Source: Voice of America, December 30, 2013
http://www.voachinese.com/content/china-local-government-20131230/1820431.html

Briefings | | |   Economy/Resources

The 12th Politburo Collective Study: Xi Jinping Stresses Improving China’s Cultural Soft Power

On December 30, the Chinese Communist Party Politburo conducted the12th collective study (of 2013) on the topic of how to enhance China’s national cultural soft power. Xi Jinping presided over the study, stressing that improving China’s national cultural soft power is a matter related to the realization of the "bi-centennial" goals and China’s great rejuvenation – the China Dream.

Professor Shen Zhuanghai from Wuhan University and Professor Huang Zhijian from the National Publicity Cadre Institute gave lectures on the subject. 
Xi said that to enhance national cultural soft power, [we] should strive to spread the values of contemporary China, namely, the values of socialism with Chinese characteristics and strive to increase China’s international discourse power. 

Source: Xinhua, December 31, 2013 
http://news.xinhuanet.com/politics/2013-12/31/c_118788013.htm

Briefings | | |   Government/Politics