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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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Beijing Municipal Party Committee Passed Emergency Air Pollution Plan

The Beijing Municipal Party Committee recently passed an emergency air pollution plan. It assigned blue, yellow, orange, and red colors to measure different pollution levels in the air. If it is a “red” level, schools will be closed and if it is a red and orange level, manufacturing plants will be shut down, no firecrackers can be lit and no outdoor BBQ and burning of garbage, leaves, or stalks will be allowed. City law enforcement organs are instructed to carry out the emergency plan.

Source: Xinhua, October 18, 2013
http://news.xinhuanet.com/edu/2013-10/18/c_117766414.htm

Briefings | | |   Economy/Resources

Supreme People’s Procuratorate Published Anti-Corruption Results

According to statistics released by the Supreme People’s Procuratorate covering the period from January through August, the procuratorate offices filed over 22,617 corruption cases involving 30,938 people, up 3.6 percent from same period last year. Of those, 7,080 cases resulted from tips that came from the public, while 18,283 cases or 80.8 percent were categorized in what is called the “tigers” category. These involved sizable sums of money and officials with a high rank. The number is up by 5.7 percent from the same period last year. In addition, the statistics also showed that a total of 18,616 smaller cases, or what is called the “flies” category, were being investigated, involving a total of 3.1 trillion (US$510 billion) in embezzled money.

Back in January of 2013, Xi Jinping vowed to launch a campaign to crack down on corruption against "tigers" and "flies" at the same time. Xi insisted that there would be “no exception made when it comes to Party discipline and the law.”

Source:
China News, October 18, 2013 http://news.china.com.cn/2013-10/18/content_30329761.htm
China Network TV, January 22, 2013 http://news.cntv.cn/2013/01/22/ARTI1358835841806906.shtml

Briefings | | |   Government/Politics

2014 Application Process for Public Servants was Launched

On October 16, 2013, the application process for public servants was launched. The total number of open positions in 2014 is 19,538, which is 1,301 lower than 2013. As of October 17, 80,000 applications had been received and had passed the employers’ verification process. Among the departments with open positions, the Administration of Taxation and Custom had the most applicants. However the most competitive position was with the State Ethnic Affairs Commission where there are 2,033 applicants applying for just two openings. The ratio is 1,017:1.

Source: People’s Daily
October 16, 2013 http://edu.people.com.cn/n/2013/1016/c1053-23219517.html
October 18, 2013 http://edu.people.com.cn/n/2013/1018/c1053-23247273.html

Briefings | | |   Government/Politics

China Youth Daily: U.S. Debt Crisis Alarms China

China Youth Daily published an article, which was later republished, listing a number of warnings about the effect the U.S. debt crisis has on China: 

First, the U.S. debt ceiling dispute once again warns China not to put its debt investments in one basket or excessively concentrate on one financial product. 
Second, China’s local government debt crisis is far more worrisome than the U.S. national debt crisis. An audit notice in June [2013] showed that 36 local governments had a total debt balance that neared 3.85 trillion yuan; 16 regions had a ratio of debt to GDP that exceeded 100 percent. The highest debt ratio was as high as 219 percent. The region with the highest debt ratio was concentrated in the Yangtze River Delta region (Shanghai municipality and Jiangsu and Zhejiang Provinces). Their overall debt ratio was over 200 percent, without even including the local government’s debt from its implicit guarantee. 
Although the risk of a U.S. Treasury default is worrisome, it at least lets people know where the danger is. However, the debts of China’s local governments are a big mess. If the U.S. Treasury were a person forced to the edge of a cliff, at least he could see clearly that if he walked forward any further, he would fall down. Thus he could stop himself on time. Chinese local governments with debt are facing away from the cliff. They cannot see how far away the cliff is. This is much more frightening. 
Third, the governments’ budgets must be open and transparent and they must accept being monitored by the National People’s Congress. 

Source: China Youth Daily, October 16, 2013 
http://news.youth.cn/gj/201310/t20131016_4031468.htm

Briefings | | |   Government/Politics

China’s Local Government Debts May Reach 24 Trillion Yuan

Shanghai Securities News reported on October 17 that the national audits of local governments’ debts are coming to an end and that such debts are estimated to be as high as 24 trillion yuan, which amounts to 40 percent of GDP. 

Since July 2013, Chinese authorities have quietly conducted an unprecedented national audit of local government debts. It is anticipated that the audit will be completed soon. While the consensus is that the local government debts will be over 10.7 trillion yuan, the China Chengxin (Asia Pacific) Credit Ratings Co., Ltd. estimated the number will be as high as 16 trillion. Others believe the number could be between 21.9 trillion to 24.4 trillion. That would amount for 38 to 42 percent of China’s GCP. 
Source: Shanghai Securities News reprinted by Sina.com, October 17, 2013 http://finance.sina.com.cn/china/20131017/021817016037.shtml
Briefings | | |   Economy/Resources

Liu Yazhou: The Internet Has Become the Main Battlefield of Ideological Struggle

Liu Yazhou, Political Commissar of the University of National Defense, published an article in the military newspaper PLA Daily calling for firm control of the battlefield of ideological struggle—the Internet. Liu started his article by quotating CCP General Secretary Xi Jinping’s statement that the Party’s ideological work is extremely important work that is related to the Party’s future and destiny. 

Liu commented, “At present, the overall situation in the ideology [battlefield] is that the West is stronger than we are and the enemy is in offense and we are in defense. The opponents have always been setting the default topic, creating trouble, and keeping us busy in our struggle to defend. If this situation continues, it is inevitable that something may go wrong. Therefore, you must strive to take the controlling position using great wisdom, great vision, and great strategy. … [We] must have counter-measures to deal with the ideological attacks emanating from all of the hostile forces from outside.” 

Liu stressed, “[We] must take control of the right to define public opinion (the opinion right). The essence of this ideological contest is the control of public opinion. Whoever owns the right to interpret and define those opinions will be able to guide the people. History shows that, for the country, the government, and the army, the ability to control the air, sea, and information is very important to winning the ‘hard battle.’ However, if one were to lose control of the opinion right, the country might already have split and the regime changed hands even before the ‘hard battle’ occurs. … Entering the new century, whoever controls the Internet, especially micro-blog resources, will have the greatest right to [control] opinions. Today’s Internet has become the main battlefield for ideological struggle. The Western hostile forces seek to advance this ‘biggest variable’ to "topple China.’” 
Liu continued, “From a regime’s perspective, to win the ideological battle, the ruling party must … occupy the moral high ground. If this is achieved, no matter how the hostile forces engage in peaceful evolution, it will be in vain.” 

Source: PLA Daily, October 15, 2013 
http://chn.chinamil.com.cn/jwjj/2013-10/15/content_5591164.htm

Briefings | | |   Government/Politics

China to Tackle Overcapacity

China’s State Council, the country’s cabinet, recently issued a document to tackle the overcapacity in a number of industries including cement, electrolytic aluminum, sheet glass, shipping, and steel.

The Guideline for Tackling Serious Production Overcapacity lists eight tasks in each sector: forbid expanding the capacity of new projects; clear up illegal capacity; eliminate outmoded capacity in an orderly way; promote mergers and the restructuring of enterprises; develop effective domestic demand; expand the international market and expand foreign investments and cooperation; make breakthroughs in technologies and strengthening enterprise innovation; facilitate innovation in government management and create a fair environment for improvement of the market mechanism.

Source: Xinhua, October 15, 2013
http://news.xinhuanet.com/2013-10/15/c_117726958.htm

Briefings | | |   Economy/Resources

Wan Gang: The Shocking Abuse of R&D Funds

On October 14, China Daily reprinted an article first published in Beijing Youth Daily about the abuse of R&D funds. On October 11, China’s State Council of Information Office held a press conference at which Wan Gang, China’s Science and Technology Minister, stated that the “dreadful problems” with research and development funding were shocking. 

The three year audit of the ministries under the State Council and the provinces revealed that out of several hundred audit reports that were done from 2007 to 2012, 39 involved “problem R&D funds.” The 39 audit reports showed that fraudulent practices could pass the approval processes, that programs could be developed without feasibility studies, that funds could be allocated even when there was no possibility of implementation, and that the completion of projects could be accepted without any inspection. 
 For example, the 13 institutions of higher education under the Shandong Province Education Department spent 943 million yuan (US$154.61 million) on R&D when they had no projects. From 2010 to 2012 the Transportation Ministry spent 186 million yuan (US$30.5 million) of 1,556 million (US$255.12 million) in R&D funds on salaries and subsidies to personnel, without complying with personnel regulations and pay standards. 
In recent years, China’s R&D expenditures have grown about 20 percent annually. In 2012, they accounted for 1.9 percent of GDP, reaching 1.024 billion yuan (US$167.89 billion) 

Source: Beijing Youth Daily reprinted by China Daily, October 14, 2013
http://www.chinadaily.com.cn/hqgj/jryw/2013-10-14/content_10314422.html

Briefings | | |   Information/Technology