Chinascope – Page 824

Beijing CBD Properties Are as Expensive as the Tokyo Shinjuku CBD and the City of London

On September 29, 2013, People’s Daily published an article on how expensive properties are in the Beijing Central Business District (CBD). The original article was from Beijing Youth Daily, the official newspaper of the Chinese Communist Youth League committee in Beijing. According to the article, Beijing CBD property is as expensive as real estate in the Tokyo Shinjuku CBD and in the City of London. However, the average income of Beijing residents is only 1/5 of the income of people living in Tokyo and London. If an ordinary young man wanted to buy an 80-square-meter apartment in the Beijing CBD, he would have to work at least 40 years without eating or drinking anything.

Source: People’s Daily, September 29, 2013
http://house.people.com.cn/n/2013/0929/c194441-23069638.html

Briefings | | October 2, 2013 | Grapevine

BBC Chinese: Shanghai Free Trade Zone Launched with No Major Surprises

BBC Chinese reported that, on September 27, two days before the official launch of the Shanghai Free Trade Zone, the Chinese State Council released the General Plan which described the special measures made available in the Zone. The new Free Trade Zone will include four bonded areas where special regulatory freedom is offered in six categories: the Financial System, Shipping and Ports, Commerce and Trade, Professional Services, Culture, and Society. For the Financial System, the Zone expanded permission for independent domestic and international banks and insurance companies to establish operations (although freely exchanging RMB is still restricted for now). For Commerce and Trade, it opened up the market for the telecommunication and video game industries (under the condition that network and information security are still protected). For Professional Services, for now, it mainly covers tourism, which allows joint-ventures to manage Chinese tourists visiting non-Taiwan foreign territories (except that businesses fully owned by foreign investors are still not allowed). For Culture and Society, the Free Trade Zone now opens up the medical care market (including hospitals), the performance agent market, and the entertainment market to businesses fully owned by foreign investors (under the condition that all business activities are conducted inside the Zone).

Source: BBC Chinese, September 27, 2013

http://www.bbc.co.uk/zhongwen/simp/business/2013/09/130927_china_sfz_background.shtml

Briefings | | October 1, 2013 | Economy/Resources

China News: Xi Jinping Met with Karzai

China News reported that Chinese President Xi Jinping met with Afghanistan President Hamid Karzai on September 27 in Beijing. Xi expressed the willingness to work closely with Afghanistan to deepen the “strategic-partner relationship.” He offered a five-point suggestion: (1) Maintain high level contact between the governments, lawmakers, and political parties of the two countries; (2) Strengthen cooperation in trade, resource development, and infrastructure-building; (3) Enhance mutual security support on fighting drugs, international crimes, and the “Three Evils” (terrorism, separatism and religious extremism); (4) Provide Afghanistan training for various types of expertise; (5) Strengthen cooperation in the United Nations and strengthen the importance of the Shanghai Cooperation Organization (SCO). Karzai thanked China for all the help provided and welcomed China to participate in Afghanistan’s energy resource development programs.

Source: China News, September 27, 2013

http://www.chinanews.com/gn/2013/09-27/5332637.shtml

Briefings | | October 1, 2013 | Geo-Strategic Trend

CRN: China May Become the Largest Trade Country

China Review News (CRN) recently quoted the Chinese Commerce Ministry, which made the statement that China’s total import/export volume may surpass the United States by the end of this year. This means that, for the first time, China may become the largest trade country in the world. The Commerce Ministry suggested that this world record “did not come easy,” especially in a tough time when the world economy is suffering from low demand. The Ministry expressed the belief that the primary reasons for this achievement are the improved international market environment and the improved competitiveness of Chinese companies. Bloomberg News suggested last year that China is about to set the biggest international trade milestone since 1945, when the United States obtained its dominant status. According official Chinese data, unless there is a major unexpected disaster, China will surpass the United States in the volume of both imports and exports. However the experts argued that being “big” is not necessarily being “strong.” It is much harder to remain the largest.

Source: China Review News, September 26, 2013

http://www.zhgpl.com/doc/1027/6/5/7/102765795.html?coluid=53&kindid=0&docid=102765795&mdate=0927075830

Briefings | | October 1, 2013 | Economy/Resources

Xi Jinping: Party Members Required to Engage in Criticism and Self-Criticism

Outlook Weekly published a commentary on September 30 discussing President Xi Jinping’s recent speech on engaging in “criticism” and “self-criticism” to improve the quality and heritage of the Party. Xi indicated that this would have a significant impact on the Party. The commentary said that if “criticism” and “self-criticism” are used frequently, the Party organization will grow stronger and more powerful. Otherwise, it will suffer losses or pay a costly price. The commentary listed examples of how “criticism” and “self-criticism” are seriously lacking among Party members. It asserted that this deficiency has resulted in an unhealthy tendency and signs of crisis within the party.

President Xi recently stressed that “‘criticism’ and ‘self-criticism’ are powerful weapons to use in solving the internal conflicts within the Party." Xi said that if all levels of Party members use these weapons frequently, it will help to “promote unity” and “improve the ability to identify and solve problems.”

Source: Xinhua, September 29, 2013
http://news.xinhuanet.com/politics/2013-09/29/c_117551444.htm

Briefings | | September 30, 2013 | Government/Politics

RFA: China’s Attacks on Rumors Was Not Meant to Protect Freedom of Speech

According to RFA, China has recently attacked many of those who were alleged to be “spreading rumors on the Internet.” In the meantime, the China Internet Network Information Center (CNNIC) told Xinhua that “attacking Internet rumors helps to protect the freedom of ‘proper’ speech.” CNNIC said that they can’t allow the Internet to be full of rumors: “If we don’t stop rumors, it is no different from destroying the internet, which no other country in the world would allow.” According to RFA, a large number of microblog postings supporting CNNIC’s actions of attacking rumors have appeared repeatedly on a number of online news websites.

Many people believe that the action of attacking “online rumors” is in fact an attack on freedom of speech. "Why do they think that they have the authority to determine what is a rumor and what is not?" One Internet expert told RFA, "Many people were telling the truth, but they ended up being arrested. Where is freedom of speech when that happens?"

Source: Radio Free Asia, September 28, 2013
http://http://www.rfa.org/mandarin/yataibaodao/meiti/sy-09282013132334.html

Briefings | | September 30, 2013 | Defense/Military

State Audit: Local Government Debt Almost Doubled in Two Years

According to Economic Information, a publication under Xinhua, China’s National Audit Office conducted an investigation into local government debt. It found that local government debt almost doubled since the 2011 audit. The nationwide investigation started in August and is nearing completion.

The officials from the National Audit Office indicated that the increase is largely the result of the build and transfer financing strategy (BT) in which the local government establishes a project and then authorizes construction companies to finance and build it and then transfer it back to the government. Since local governments are not authorized to issue bonds, financing platform companies, set up by local governments, have been instrumental in obtaining financing or issuing bonds to the public. In some cases, the interest rate has reached 14 percent.

The 2011 national audit showed that, as of the end of 2010, local government debt exceeded 10 trillion yuan (US$1.63 trillion). Most financing platform companies were set up by provincial and municipal governments in the developed regions. However, the ongoing investigation showed that almost every country government now has its own financing platform. “It is literally the ATM of the central bank,” said an official of the National Audit Office. These financing platform companies hold assets of very low market liquidity and have no ability to pay off these debts. Many of them are in the red.

Source: Economic Information reprinted by China Daily, September 27, 2013 http://www.chinadaily.com.cn/hqgj/jryw/2013-09-27/content_10207613.html

Briefings | | September 27, 2013 | Economy/Resources

Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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.”