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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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Former SAC Director: State-Owned Companies Failed Due to Government Intervention

China.com recently reported that Li Rongrong, former director of the State-owned Assets Supervision and Administration Commission of the State Council (SAC), spoke at the World Economic Forum on the issues that Chinese state-owned companies face. Li suggested that the key cause of the Chinese state-owned companies’ failures is that there are too many government interventions. He also expressed the belief that the biggest crisis these companies suffer is a trust crisis, which is reflected in the areas of poor quality control, untruthful advertising, and an unwillingness to serve the customers. Li called for providing full freedom to the state-owned companies to compete in the global market and to learn the lessons they need to learn.
Source: China.com, September 11, 2013
http://finance.china.com.cn/news/special/2013dws/20130911/1805761.shtml
Briefings | | |   Economy/Resources

Xinhua: The State Council Released Air Pollution Remediation Plan

Xinhua recently reported that the Chinese State Council officially released the Air Pollution Remediation Plan, which includes tangible regulations, time tables, and goals for air pollution control. The Plan highlights ten operational points: (1) Enhance comprehensive management of pollution emissions; (2) Adjust the industrial structure to upgrade the economy; (3) Speed up the adoption of high-technology in industrial enterprises; (4) Improve the supply of clean energy; (5) Enforce a strict environmental protection standard; (6) Introduce more market-based mechanism into environmental policies; (7) Establish a more complete legal system; (8) Balance regional cooperation for pollution remediation activities; (9) Develop monitoring, alert, and emergency handling systems; (10) Clarify the responsibilities of the government and of society to mobilized the entire population for a better environment. 
Source: Xinhua, September 12, 2013
http://news.xinhuanet.com/politics/2013-09/12/c_125375306.htm
Briefings | | |   Government/Politics

CRN: Chinese Economy Suffered More Structural Problems

China Review News (CRN) recently published a commentary analyzing the “better than expected” economic numbers from August. In the week of September 9, China officially released statistics on the economy (as of the end of August). On nearly all fronts the Chinese economy showed better than expected numbers. Key indexes such as industrial growth, consumer spending, investments, and international trade all demonstrated higher growth rates. Goldman Sachs, Bank of America, and Merrill Lynch all adjusted their forecasts higher for the third quarter. However the commentary did a deeper analysis and suggested that the two primary drivers of the high growth were banknote based financing and real estate investments. A large number of companies and banks took advantage of operational holes in various types of banknotes to finance short-term cash flow needs. This introduced high risks into to the financial market while boosting the illusion of an actively growing market. The housing market improved recently due to further borrowing into the existing bubble, making the bubble even bigger. The author concluded that the optimistic economic data proves that the structural problems in the economy have only gotten worse.
Source: China Review News, September 13, 2013
http://www.zhgpl.com/doc/1027/3/9/3/102739352.html?coluid=53&kindid=0&docid=102739352&mdate=0914075030
Briefings | | |   Economy/Resources

Beijing Morning Post on the Serious Waste of Talent in China

Guangming Daily carried an article originally from the Beijing Morning Post on the serious waste of talent in China. The article stated that, in 2005, there were 25 million competent people in China whose talent was wasted, which is the equivalent of a waste of over 900 trillion yuan (US$147 trillion). College students would work as waitresses or security guards and graduate students with doctorate degrees would end up being salespeople. The article blamed the basic structure of the economic system for improperly allocating resources while the available jobs also lacked technological renovation.

Source: Guangming Daily, September 13, 2013
http://rencai.gmw.cn/2013-09/13/content_8894854.htm

Briefings | | |   Economy/Resources

Farmer’s Average Income Below 60 Percent of China’s Median Income

According to the State Council Leading Group Office of Poverty Alleviation and Development, by the end of 2012, there were close to 100 million farmers in the rural regions who lived in poverty. Their average income was only 58 percent of national median income. Some in the rural regions do not have electricity, they are not accessible, and they have drinking water safety issues.

Source: China.com, September 13, 2013
http://local.china.com.cn/2013-09/13/content_30017448.htm

Briefings | | |   Economy/Resources

Shanghai Pilot Project of Free Trade Zone to Open September 29

Guangming Daily reported that, according to Securities Daily, Wang Xinkui, President of the Shanghai WTO Affairs Consultation Center and Director of the Counselor’s office announced on September 12 that the Shanghai pilot program of a free trade zone will officially open on September 29. Wang stated that the pilot zone is a new strategy to further promote the open door policy and test China’s ability to manage the investment field by following the international standard. It will also improve the business climate and further facilitate trade. Moreover, Wang said, foreign banks will see fewer restrictions in the future. HSBC, Standard Chartered, and the Bank of East Asia are the first three foreign banks to have been approved to open for business in the free trade zone.

Source: Guangming Daily, September 13, 2013
http://economy.gmw.cn/2013-09/13/content_8895648.htm

Briefings | | |   Economy/Resources

Activities of Chinese Military Airplanes and Warships in the Island Chain

Since September 8, 2013, China’s military bombers, frigates, and drones have been going in and out of the airspace and waters in the area of the first island chain. 

On the morning of September 8, two Chinese Navy H-6 bombers flew a training mission between the two main islands of Okinawa and Miyako in the Western Pacific. 
On September 8 and 9, two Chinese navy frigates sailed to the East China Sea from the Pacific Ocean passing between Okinawa and Miyako Islands. 
On September 9, a Chinese drone flew over the airspace near the Diaoyu Islands while the Chinese army had an exercise in the East China Sea. 
The Chinese military activities heightened Japan’s alertness. Japan’s defense ministry issued a "special order to be alert to China." Song Xiaojun, a Chinese military expert and special commentator for CCTV commented on the Chinese military activities in an interview with CCTV. Song said that the area about 200 km deep along the coastlines on the East China Sea are the Chinese enclave of wealth and the activities of China’s military aircraft and warships beyond the first island chain are to build a security zone to protect the wealth of China’s coastal area. Song stressed that this is very normal behavior. 

Source: People’s Daily, September 10, 2013 
http://military.people.com.cn/n/2013/0910/c1011-22868640.html

Briefings | | |   Defense/Military

Population to Be Relocated to Fill the Ghost Town of Ordos

Ordos, a major subdivision of Inner Mongolia in China, is known for its coal production and lavish government projects. One is the new City of Ordos, a large city with abundant infrastructure that residents seldom use and which has frequently been described as a "ghost town." 

In 2012, developers completed the construction of about 4.33 million square meters. However, the demand was weak. For example, in one development, since the second half of 2010, only two of the 25 completed buildings have been available for sale. The Ordos government has taken action to establish non-coal industries and to re-locate its rural population to the city. The entire population in Ordos is about two million. The authorities estimate that if all are relocated to the city, it would create a demand for 6,000 square meters of housing, assuming a usage of 30 square meters per person. 
Source: China Securities reprinted by Xinhua, September 12, 2013 
http://news.xinhuanet.com/fortune/2013-09/12/c_117339671.htm
Briefings | | |   Economy/Resources