Chinascope – Page 808

China’s Central Bank: Real Estate and Local Government Debt Are Most Worrisome

On November 6, Xinhua reprinted an article from Beijing Youth Daily on the worries that China’s central bank faces. The bank stated that real estate and local government debt have become its most worrisome macroeconomic issues.

In the Third Quarter Monetary Policy Report from the People’s Bank of China, China’s central bank warned that inflation is likely to increase during the fourth quarter because of rising labor and service costs and higher rents.

The bank stated that China faces many risks and challenges in its economic operations. “The new strong growth momentum remains to be formed. The economy may experience de-leveraging and capacity reduction over a long period of time. There are major problems in the real estate sector and in local government debts. The structural adjustment and transformation of the development mode remain as arduous tasks.”

Source: Beijing Youth Daily reprinted by Xinhua, November 6, 2013

http://news.xinhuanet.com/house/bj/2013-11-06/c_118020614.htm

Briefings | | November 7, 2013 | Economy/Resources

Qiushi on the Direction of China’s Economy

A recent Qiushi article discussed the direction of China’s economy. It stated that China should continue relying on development-based high economic growth to solve its problems.

The author argued that, with a per capita GDP of US$6,090, for the next ten years China should still rely on the high economic growth model in order to reach US$12,000. By then it will be able to join the ranks of developed countries.

He rebutted the idea of laying blame for China’s current economic and social problems, such as environmental pollution, an increasing gap in income distribution, an imbalance between urban and village development, an imbalance in regional development, and insufficient public services, on the rapid economic development in the past. Instead, the author argued that the problems that have occurred during economic development can only be solved in through the process of further development.

The author listed the following as the direction for economic development: expanding consumption by taking real estate and the automobile as the driving force; developing a third industry to absorb a large number of unemployed people; getting more farmers off the land to work in cities; building a system to encourage more innovation; and developing and improving capital markets.

Source: Qiushi, November 1, 2013
http://www.qstheory.cn/zxdk/2013/201321/201310/t20131030_284130.htm

Briefings | | November 7, 2013 | Economy/Resources

Anti-America Documentary Silent Contest Portrays How the U.S. Infiltrates and Subverts China

The Chinese military’s National Defense University, the General Political Security and General Staff Departments, the Chinese Academy of Social Science, and the China Institutes of Contemporary International Relations jointly created an anti-American propaganda documentary called, “Silent Contest.” The movie was completed in June 2013, and widely circulated online for a brief period in October. Then starting on October 31, 2013, the Chinese mainstream media blocked it for reasons that are unclear. The movie asserts that the United States has used 5 methods to subvert China: 1) Political Infiltration, 2) Cultural infiltration, 3) Ideological infiltration, 4) Organizational infiltration, and 5) Political interference and social penetration.

According to the movie, the United States has been infiltrating and subverting China completely. The U.S. infiltration conspiracy is the cause of China’s complicated social conflicts, the CCP officials’ corruption, human rights protests, the spread of Christianity, and people’s advocatiing that China institute a constitutional government. The film also portrayed all the mainstream liberal intellectuals in society as political traitors, stating that these intellectuals who openly publish their opinions to oppose the CCP and betray the country are in the service of Western interests groups.

Source: Takungpao and NTDTV, November 5, 2013
http://news.takungpao.com/world/exclusive/2013-11/2013924.html
http://www.ntdtv.com/xtr/gb/2013/11/05/atext997620.html

Briefings | | November 6, 2013 | US-China Relations

Global Times: China’s Anti-ship Missile Has the Capability of Sinking U.S. Aircraft Carriers

On November 2, 2013, Huanqiu, the Chinese edition of Global Times, published an article titled “China’s Anti-ship Ballistic Missile Has the Capability of Sinking U.S. Aircraft Carriers.” The article openly viewed the U.S. as a potential enemy in a future war and proudly introduced China’s DF-21D anti-ship ballistic missile, a "carrier killer" that can hit aircraft carriers 2,000 kilometers away.

The article stated, “In the 1996 Taiwan Strait crisis, the PLA truly felt a huge threat from the U.S. aircraft carrier battle groups and thus began to study how it would deal with the U.S. military’s involvement in a future war. An important part of the research has focused on how to fight against the carrier battle groups.” In conclusion, the article gave a chronological summary of the development of China’s anti-ship ballistic missiles.

Source: Huanqiu, November 2, 2013
http://mil.huanqiu.com/mlitaryvision/2013-11/2714897.html

Briefings | | November 6, 2013 | Defense/Military

Sina Finance: WTO Ruled China’s Rare Earth Export Restrictions Illegal

Sina Finance recently reported that the World Trade Organization (WTO) ruled on the complaints that Japan, the United States, and the European Union filed against China’s rare earth export restrictions. The WTO concluded that these restrictions are not compliant with the WTO’s regulations. This initial ruling is not considered final. China can still appeal. China implemented the restrictions after an incident with Japan in the East China Sea in 2010. It was widely considered to be a way of punishing Japan. Japan later jointly filed the WTO complaints with the United States and the European Union. Rare earth is used as basic material in the high-tech industry and the defense industry globally. China argued that China is authorized, in accordance with WTO rules, to apply restrictions on the export of strategic resources and high-pollution products. However, China did not restrict domestic rare earth development expansion which increased the level of pollution.

Source: Sina Finance, October 30, 2013

http://finance.sina.com.cn/chanjing/cyxw/20131030/133917165289.shtml

Briefings | | November 5, 2013 | Government/Politics

China News: Significant Bursts in China’s Housing Bubble

China News recently reported that China’s official top-level think tank acknowledged the fact that prices are plummeting in some areas of China’s housing market. Li Wei, Director of the State Council Development Research Center, reported at a conference that risks are escalating in the housing market. The bubbles are already bursting in tier-three and tier-four cities. [Editor’s note: tier-three and tier-four cities are typically mid-sized cities that are not the national or provincial capital.] The Research Center recently released a report on studies and statistics which demonstrated that the Chinese housing market shows the “highest uncertainty in today’s Chinese economy.” While top-tier cities still enjoy rising housing prices, more and more “ghost towns” [Editor’s note: These are newly developed towns that remain vacant because there are no real estate buyers.] are appearing in or near smaller cities, which is becoming a heavy burden to the financial system.

Source: China News, October 30, 2013

http://finance.chinanews.com/house/2013/10-30/5439880.shtml

Briefings | | November 5, 2013 | Economy/Resources

Xinhua: Japan Unable to Understand China’s Protest on Exercise Interference

Xinhua recently reported that Yang Yujun, spokesperson for the Chinese Defense Ministry, announced at a press conference that the Japanese Navy has performed intensive following, monitoring, and intelligence gathering whenever the Chinese Navy was in the middle of a military exercise mission in the Western Pacific high seas. China officially protested against the Japanese Navy’s behavior. However the Japanese Defense Minister stated on November 1 that he was “completely unable to understand” China’s reaction as international law permits Japan’s activities, so they are therefore fully lawful. The Japanese government expressed the intent to continue to pay attention to China’s military activities. Yang Yujun also warned that Japan’s recent activities have frequently “produced a war-time atmosphere.”

Source: Xinhua, November 1, 2013

http://news.xinhuanet.com/world/2013-11/01/c_125636532.htm

Briefings | | November 5, 2013 | Geo-Strategic Trend

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.