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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

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

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

Luo Yuan: China Is Not a Lamb That Others Can Slaughter at Will

Chinese Strategic Culture Association Executive Vice President and Secretary-General Luo Yuan had a discussion online on People’s microblog [under the website of People’s Daily] with the Netizens about the recent developments in the situation of the Diaoyu Islands.  

Some asked: "Recently, it has not seemed to be peaceful in China’s surrounding waters. How do you think about the China-U.S. naval confrontation incident in the South China Sea earlier this month? Does it mean that China will no longer just tolerate everything blindly in its territorial waters?" 
Luo Yuan said that, in dealing with the surrounding hot issues, China has maintained a great deal of restraint and tolerance. It can be said that we have been tolerating again and again. Now it is becoming intolerable. While we were conducting normal naval training in the Western Pacific, a Japanese missile frigate intruded into our exercise area for reconnaissance at a close distance. While our aircraft carrier battle groups were in the South China Sea for normal research and training, the U.S. cruiser also came close to our aircraft carriers. No sovereign state allows this. It was a legitimate defensive measure that we sent amphibious landing ships to drive them away and guard ourselves. We didn’t cause any threat to any country. The issue now is that the United States came close to our doorstep with its cruiser; it was not China’s warships going to the United States to provoke. It is the United States interfering with China’s normal military training, not China interfering the U.S.’s normal navigation. The U.S. cannot be too tyrannous and cannot go too far bullying people. China is no longer the lamb to be trampled upon and insulted. 
Source: People’s Daily, December 24, 2013 
http://military.people.com.cn/n/2013/1224/c1011-23934591.html

Communist Party Issued Five Year Anti-Corruption Work Plan

According to Xinhua, on December 26, 2013, the Central Committee of the Chinese Communist Party issued a “2013 to 2017 Work Plan to Establish a Sound System for Punishing and Preventing Corruption.” 

The Party’s notice announcing the Work Plan stated, “Moving forward with the establishment of a system to punish and prevent corruption is an important implementation of the Party’s 18th Congress and its 3rd Plenary Session. It is a major political task of the Party and the common responsibility of the whole society. … The Work Plan is an important basis that will guide the clean government and anti-corruption campaigns for the next five years.” 
The Work Plan states, “[We must] uphold that there should be no exception before the law of the country and the discipline of the Party, no matter who it is and no matter how high his rank. As long as the law of the country or the discipline of the Party is violated, [we] must conduct a thorough investigation to track it down all the way and will absolutely not tolerate it.” 
The work plan also stated that if the problems of corruption are not handled properly, “they will critically harm the Party, and even lead the Party or nation to perish." 
Source: Xinhua reprinted by People’s Daily, December 26, 2013 
http://politics.people.com.cn/n/2013/1226/c1001-23947118.html

People’s Daily: China’s First Commodity Exchange Opened Its Doors

People’s Daily recently reported that the Bohai Commodity Exchange (BOCE) officially started its first business day in Tianjin on December 18. BOCE is a trading platform for large scale commodity exchanges, following international trading standards. Initial commodity categories focus on crude oil, coal, nonferrous metals and agricultural and forestry products. The Exchange is planning to provide comprehensive services including trade, settlement, logistics, and finance. The goal of BOCE is to become a commodity trading center and pricing center with significant power to influence the market. By the end of 2013, over 60 brands and commodities had been listed on BOCE. 
Source: People’s Daily, December 19, 2013
http://www.022net.com/2009/12-19/426241293324347.html

NDRC: International Investments below US$1 Billion No Longer Require Approval

Southern Metropolis Daily recently reported that the Chinese National Development and Reform Commission (NDRC) announced a new policy governing Chinese overseas investments. The new policy allows Chinese investors not to seek Chinese government approval for investments below US$1 billion outside of China. Instead, the investors are asked to fill out a for-record-only form. The new policy replaces the old requirement to get approval from NDRC, the Ministry of Commerce, and the State Administration of Foreign Exchange (SAFE), which typically took four months. Both state-owned companies and privately owned companies enjoy the same rights under this new rule. However, the new policy does not apply to investments involving “sensitive regions or sensitive industries.” 
Source: Southern Metropolis Daily, December 16, 2013
http://news.nandu.com/html/201312/16/600970.html

CRN: “610 Office” Chief Li Dongsheng Investigated

China Review News (CRN) recently reported that Li Dongsheng, Chief of the Central Leading Group of Cult Prevention and Handling (also known as the "610 Office"), and Deputy Minister of Public Safety, is currently under investigation for “severe violation of Party discipline and the law.” Li has been a long-term senior political news reporter. He served as Deputy Director of Chinese Central Television (CCTV) and Deputy Director of the Publicity Department of the Chinese Communist Party Central Committee. Li is the second “Minister-Level” official to have been investigated in the last few months. It is widely believed that this is a clear signal of a deepened anti-corruption investigation into the Party’s Politics and Legislative Affairs Committee. [Editor’s note: The 610 Office is a nationally organized governmental structure that violates human rights. It is considered the primary operational system that persecutes religious movements such as underground Christian Churches, Tibetan Buddhists, and Falun Gong. The "610 Office" has been mentioned in multiple reports published by the U.S. Congressional-Executive Commission  on China (CECC), as well as by the United Nations. The name derived from the fact that it was formed on June 10, 1999, for the specific purpose of eliminating Falun Gong. In 2003, its mission expanded to include other religious groups.]
Source: China Review News, December 21, 2013.
http://hk.crntt.com/doc/1029/3/6/7/102936729.html?coluid=151&kindid=0&docid=102936729&mdate=1221112036