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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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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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Buddhist Temples Jack up the Price of the First Incense of the New Year

China News carried an article about a phenomenon that took place on the eve of the Chinese New Year: tens and thousands of people lined up outside of Buddhist temples overnight to fight for the opportunity to burn the first incense while making their New Year wishes. At the same time, the temples grasped at the chance to raise the price. It was reported that, this year, one temple in Zhejiang Province priced the first incense at 118,000 yuan (US $19,470). Due to overcrowding, numerous accidents have occurred each year, causing security concerns. In Yangzhou, Jiangsu Province, the police force was called in to guard people’s safety. The article said that people carry misconceptions and are misled by the belief that the first incense will make their New Year wishes come true.

Source: China News, February 1, 2014
http://finance.chinanews.com/life/2014/02-01/5801751.shtml

Briefings | | |   Social Stability

State Council to Introduce Merger and Acquisition Plans for State Owned Enterprises

China National Radio reported that, according to an inside source from the Ministry of Industry and Information Technology, the State Council will soon introduce the “State Council’s opinion on further optimizing the market environment for the merger and acquisition of State Owned Enterprises.” The opinion will provide merger and acquisition guidance mainly to the steel, cement, vessel, photovoltaic, and baby formula industries. The article said that the current structure of these industries is in small scattered locations. There is no centralized planning; they often are deficient; and they have a serious excess production capacity. In these industries, these issues have been a major obstacle to reform. However, mergers and acquisitions in these industries also face serious difficulties, including heavy merger and acquisition taxes, financing, and a lengthy approval process. The opinion requires that the state should simplify the approval process while instituting policies that will provide optimized solutions on these issues.

Source: China National Radio, February 2, 2014
http://china.cnr.cn/ygxw/201402/t20140201_514778867.shtml

Briefings | | |   Government/Politics

More Securitization of State-Owned Enterprises to Come

China Securities reported that local governments may securitize state-owned enterprises in amounts up to 20.7 trillion yuan in their efforts to raise funds for local expenditures. In the past, local governments resorted to borrowing and the sale of government land in order to raise funds. The central government has recently made the local government’s debts a focus of attention. 

According to a statement that China’s Ministry of Finance made last week, in 2013, the proceeds from government land sales reached 4.1 trillion yuan, a 44 percent increase over 2012. Statistics released by the National Audit Office last month showed that, in 11 provinces, 316 cities, and 1,396 counties, the debts guaranteed by the sale of government land accounted for 37 percent of outstanding local government debts. 
The stated goal of some local governments is to securitize 40 percent of the enterprises that they own by the end of 2015. More provinces, particularly those with a large number of state-owned enterprises, are expected to push beyond 40 percent. Based on a 40 percent securitization rate and a 10 percent asset increase of state-owned enterprises, it is estimated that such securitization of state-owned enterprises will reach 20.7 trillion yuan by the end of 2015. 

Source: China Securities reprinted by Xinhua, January 30, 2014 
http://news.xinhuanet.com/fortune/2014-01/30/c_126081679.htm

Briefings | | |   Economy/Resources

More Poor Counties Today than 27 Years Ago

In spite of China’s rapid economic development, the number of officially designated poor counties in China has increased from 331 in 1986 to 592. Counties that are designated as poor each receive subsidies from the central government of between 30 and 50 million yuan every year. 

Since 1994, the total number of poor counties in China has remained at 592. Most of the 592 counties are located in the provinces of Yunnan, Guizhou, and Shaanxi. Yunnan has the largest number of poverty-stricken counties with a total of 7, followed by Guizhou and Shaanxi, which each have a total of 50 poor counties. 
According to Legal Evening News, the central government provides special poverty relief funds of about 30 to 50 million yuan annually to each of these counties, with some additional payments and some preferential policy measures. This may have contributed to a lot of counties not wanting to grow out of poverty. 
Source: Legal Evening News reprinted by Nandu, January 29, 2014
http://news.nandu.com/html/201401/29/743105.html
Briefings | | |   Social Stability

People’s Daily: China Made Major Breakthrough in Aircraft Carrier “Electromagnetic Slingshot”

In the past few years, the statement, "China is developing an electromagnetic catapult," has been circulating in the rumor mill on the Internet. 

Recently, a U.S. satellite photo published on a website exposed the appearance of a high-speed magnetic rail traction device at an unknown location in China. Around the same time as the photo’s publication, Major General Ma Weiming, who is an Academician at the Chinese Academy of Engineering and a Professor at the Naval University of Engineering, received the National Science and Technology Progress Award. On receipt of the award, Ma delivered a speech in which he is believed to have disclosed that China has successfully developed electromagnetic catapult technology. 
At present, the United States, Britain, the former Soviet Union, and China are the only countries that are conducting research into the electromagnetic catapult. Building a 1:1 full size large ground test facilities for an electromagnetic catapult is only taking place in the U.S. and China. 
Li Xiaojian, chief editor of the military website Super Camp, stated that being able to build such a large scale experimental facility demonstrates that China has fully mastered the key technology of the electromagnetic catapult, such as large linear induction motors, a high-strength forced energy storage device, and a high-performance pulse generator. 

Source: January 29, 2014 
http://military.people.com.cn/n/2014/0129/c1011-24258587.html

Briefings | | |   Defense/Military

Qiushi: Three Major Risks Affecting China’s Political Stability

Qiushi, a theoretical journal for the Chinese Communist Party, published an article listing the three major risk factors that can potentially change the political landscape of China: 

1) The decentralization of power. The article argues that democratic political reform carries the risk of polarizing the power of the central government. The article cited Vietnam as an example. 
2) Fluctuations in the economy. Sustainable economic development and maintaining social mobility are fundamental guarantees of social stability in countries going through industrialization and modernization. Over the next 10 to 20 years, maintaining sustainable economic development and social mobility will be vital for China’s social stability. 
3) The risk of losing control of the media. Guiding social ideology, controlling public opinion, and managing social emotions are an important part of national governance and important ideological conditions for maintaining social stability. From the experience of other countries and the new situations China has encountered in recent years, the challenges and risks from the impact of social media and from the management of society’s emotional impact are increasing.
The article stated that it is foreseeable that social ideological guidance, the regulation of public opinion, and social emotional management will occupy a more important place in Chinese society in future governance and will play a greater role in maintaining social stability in the future. 
Source: Qiushi, January 28, 2014 
http://www.qstheory.cn/zz/wwtj/201401/t20140128_317210.htm
Briefings | | |   Government/Politics

Forecast: Eight Major Events to Occur in 2014

On January 29, New Epoch, a weekly in Chinese, published its forecast for the Chinese year of Horse. The Chinese year of Horse starts on January 31, 2014. 

The New Epoch predicts that the follow eight major events will occur in the year of the Horse: 
1. Leung Chun-ying will no longer be the head of the Hong Kong Government; Shen Yun Performing Arts will perform in Hong Kong during the 2014 Christmas holidays. 
2. There will be public announcements that a “big tiger” has been imprisoned; Jiang Zemin will become the new target. 
3. The North Korean regime will collapse. 
4. The shortage of funds will hit again and the real estate bubble will burst. 
5. A bank in China will go bankrupt. 
6. China will exchange fire with another country. 
7. The “sunshine” bill that would require financial disclosure from government officials will abort; the public will dig out and publish the assets of senior officials. 
8. There will be massive lay-offs at Central state-owned enterprises 

Source: Epoch Times, January 29, 2014 
http://www.epochtimes.com/gb/14/1/29/n4071351.htm
Briefings | | |   Social Stability

Huanqiu Editorial: Western Countries’ Support Provides Spiritual Inspiration to Chinese dissidents

On January 28， 2014, Huanqiu, the Chinese edition of Global Times, published an editorial titled, “Supporting the Dissidents in China; the ‘Open Conspiracy’ of Western Countries.” According to the editorial, Chinese dissidents have become well-known because of the support they receive from the Western media and governments. Without the Western media’s substantial reports and Western governments open support, Chinese dissidents would be nothing but “fleeting meteors.” It is the Western governments’ “open conspiracy” to stand side by side with Chinese dissidents as they share the same values. Western countries’ support has inspired Chinese dissidents spiritually.

Recently, Xu Zhiyong, an activist who organized a grass-roots New Citizen Movement to express public discontent over government officials’ corruption, was sentenced to four years in prison for “gathering a crowd to disturb the public order.” The U.S. government’s “deep disappointment” and the Western mainstream media’s strong support have increased Xu’s influence among Chinese dissidents.  

Source: Huanqiu, January 28, 2014
http://opinion.huanqiu.com/editorial/2014-01/4797284.html

Briefings | | |   Government/Politics