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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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China’s Local Government Debts Result from the Government’s System

On September 24, 2013, Gao Peiyong, Director of Institute of Finance and Trade Economics of the Chinese Academy of Social Sciences (CASS) spoke at an economic forum in Beijing. At the forum, Gao stated that the ultimate risk that occurs as a result of local governments’ debts is not due to the size of the debts themselves, but to the nature of the government system.  

Gao indicated that it is because the local governments lack awareness of the standard of “living within their means” and recognizing an obligation to pay off their debts. “Only by improving local governments’ financial systems can local debt risks truly be resolved.” “The greater problem is that almost all of the local governments give little thought to and have no consideration for how to repay their debts.” Gao said that if a person never wants to pay back his debts or never wants to take his obligations seriously, that person’s actions result in the greatest risk, which is the system’s problem and its most fundamental problem. 

According to Gao, the reason why local governments are such debtors is directly linked to Communist China’s financial system. In the eyes of the central government, local governments are children that need to be controlled. They do not have a separate, sound personality for dealing with self-finance. 

Source: Xinhua, September 24, 2013 
http://news.xinhuanet.com/yzyd/local/20130924/c_117490452.htm
Briefings | | |   Economy/Resources

China Review News on the Necessary Adjustment of China’s Diplomatic Policies in Southeast Asia

On September 22, 2013, China Review News published a commentary on the necessary adjustment to China’s diplomatic policies in Southeast Asia. According to the commentary, as China is becoming a world power, it has to deal with complicated relationships with China’s neighboring countries. The United States, by comparison, has always enjoyed the advantage of “no wars with its neighbors.” Although China has the power to handle any neighbors now, China needs to focus on its domestic economic development. Therefore, China should balance its domestic development and its international relations with its neighbors in the following ways:

  1. Strengthen China’s domestic system building, economic development and social control, and its management.
  2. Convince the neighboring countries to trust China’s political commitment, its promise of safety and the direction of its economic development.
  3. Share international responsibilities and authority in the Asia-Pacific region and take care of small countries’ interests appropriately so as to increase China’s international influence and its legitimacy in the world.

Source: China Review News, September 22, 2013
http://www.zhgpl.com/doc/1027/4/9/0/102749041.html?coluid=1&kindid=0&docid=102749041&mdate=0922000405

Briefings | | |   Geo-Strategic Trend

Economic Bubble: China’s Economic Growth Model Faces a Serious Challenge.

On September 19, 2013, 21cbh.com, a professional financial news website under the 21st Century Media Group in Guangdong Province, published an article titled, “The Economic Bubble: China’s Economic Growth Model Faces a Serious Challenge.” According to the article, China’s export-oriented economy is going nowhere because China’s strength in its large population of cheap labor, its vast cheap land, and the government controlled depreciated RMB exchange rate no longer exist. China is now experiencing an economic bubble:

  1. In 2012, the ratio of broad money supply (M2) to GDP reached 188 percent in China, while the ratio of M2 and GDP in the U.S. was only 90 percent.
  2. In 2012, the ratio of investment in fixed assets to GDP in China was over 70 percent.
  3. China’s PPI has been declining over the last 18 consecutive months, since March of 2012. Meanwhile, China’s CPI has been increasing sharply. The prolonged divergence between PPI and CPI, which has not happened before in history, indicates a prolonged excess production capacity and lingering inflation, with a huge credit expansion.

Source: 21cbh.com, September 19, 2013
http://finance.21cbh.com/2013/9-19/2OMzcxXzc3NTU2OA.html

Briefings | | |   Economy/Resources

Study Times: The China Dream Will Improve Confidence in Socialism with Chinese Characteristics

On September 16, 2013, Study Times, a publication of the Party School of the Central Committee of the Chinese Communist Party, published an article titled, “How to Interpret the China Dream.” According to the article, the key elements of the China Dream are as follows:

  1. “The essence of the China Dream is a consensus on the value of the prospects of the development of socialism with the Chinese characteristics.”
  2. “The China Dream deeply reflects the ideals that the Chinese Communist Party members have been fighting for.”
  3. The China Dream will improve China’s national image and confidence in the socialist culture with the Chinese characteristics.
  4. The China Dream will enhance China’s international influence and the power of its speech throughout the world.

Source: Study Times, September 16, 2013
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2013/09/16/03/03_38.htm

Briefings | | |   Government/Politics

Beijing Business: Nationwide Campaign of Urban Construction about to Begin

Beijing Business recently reported that the State Council released executive notes on strengthening city’s urban infrastructures. A nationwide campaign of public investment in new construction work is soon to be launched. The State Council’s plan focuses mainly on four areas: (1) Investing in city roads and transportation related work; (2) Constructing and upgrading various types of urban public services pipelines; (3) Speeding up the construction of facilities to manage garbage and polluted water; (4) Building ecological gardens and parks.

Investments in these identified areas are expected to bring about a recovery from the environmental losses that resulted from China’s rapid development over previous years. Meanwhile this move is also designed to use government spending to boost the economy. The total monetary investment in new infrastructure is estimated to be in the range of trillions of yuan. The plan also encourages the private sector to invest in areas that may bring a profit. 

Source: Beijing Business, September 17, 2013
http://www.bjbusiness.com.cn/site1/bjsb/html/2013-09/17/content_228700.htm?div=-1
Briefings | | |   Government/Politics

China News: China is Canada’s Largest Investment Source

China News recently reported that the Association for Canadian Studies in China (ACSC) held its international academic forum in Guangzhou on September 21. Participants at the Forum explained that, as of the end of the year 2012, 183 Chinese companies had invested in Canada, with a total investment of US$43.8 billion. Canada’s largest source for foreign investments was China. Over one hundred scholars from Canada, the United States, Australia, India, and China attended the Forum. Based on their research, as of the end of April 2013, China had become Canada’s second largest trade partner, the second largest source for imports, and the third largest export destination. Canada is China’s thirteenth largest trade partner. ACSC was founded in 1984. It is a research institute at the national level dedicated to Canadian studies. It has over 40 research centers scattered in many Chinese universities and science research organizations. 
Source: China News, September 21, 2013
http://finance.chinanews.com/cj/2013/09-21/5304037.shtml
Briefings | | |   Geo-Strategic Trend

Xinhua: Survey Showed 67.6 Percent of People Found Housing Prices Unacceptably High

Xinhua recently reported on the results of a housing market survey that the Chinese central bank conducted during the third quarter of 2013. 67.6 percent of the people surveyed suggested that the current housing prices are “too high” and are “unacceptable.” Only 2.1 percent of the sample population found them to be “satisfactory.” Around 77 percent of the residents of the “top tier cities” (such as Beijing and Shanghai) expressed the belief that prices were “too high.” Regarding the future, 35.8 percent of those who responded expected a trend toward increased growth and 45.2 percent expected the level of prices to remain steady. Only 6.5 percent of the sample expected a drop in prices. The survey also covered spending plans. 45.2 percent of the people surveyed plan to “increase their savings,” and 17.5 percent expect to spend more. 36.3 percent of those surveyed plan to do more “investing.” The top three investment channels are: investment funds, real estate, and bonds. 
Source: Xinhua, September 21, 2013
http://news.xinhuanet.com/house/bj/2013-09-21/c_125419261.htm
Briefings | | |   Economy/Resources

The Extreme Challenges Village School Children Overcome Every Day to Attend School

As urbanization is speeding up, more and more people are moving from towns and villages to counties [the equivalent of suburbs]. The number of school-age students in the rural villages has been declining, forcing more and more schools in the rural areas to close. The remaining school age children in the villages therefore face extreme challenges to go to school.

Xinhua published a photo news report about the school children in Tongle Village, Weixi County, in the Tibetan Autonomous Prefecture in Yunan Province. They have to spend four hours each day climbing mountains and crossing rivers in order to go to school. The report said that they usually wear out at least two pair of shoes each month.

The report quoted a study published by the 21st Century Institute of Education which stated that, from 2000 to 2010, an average of 63 elementary schools, 30 teaching facilities, and three middle schools closed their doors every day. In that ten year time frame, the villages saw 229,400 of the elementary schools, or 52.1 percent, close down, while the number of teaching facilities declined by 111,000 or 60 percent.

Source: Xinhua, September 22, 2013
http://news.xinhuanet.com/edu/2013-09/22/c_125419917.htm

Briefings | | |   Social Stability