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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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Guangming Daily Promotes Bottom Line for Seven Areas of Self-discipline on the Internet

On August 19, 2013, Guangming Daily published a commentary promoting “Seven Bottom Lines” on the Internet innitiated by National Internet Information Office of the PRC. The new Internet policy requires all websites and Internet users stop spreading "rumors" and expressing "negative feelings" on the Internet and strengthen their "sense of self-discipline" and their "consciousness of the bottom lines." Netizens in China have the responsibility to protect China’s existing social system and national interests. According to the article, Internet users in China must adhere to the "seven bottom lines," which are: 1) the law and regulations; 2) the socialist system; 3) the national interest; 4) citizens’ legitimate rights and interests; 5) the social and public order; 6) morality; 7) the information’s authenticity.

Guangming Daily is an official newspaper of the PRC covering ideology, theory, and culture for intellectuals; it is under the leadership of the Chinese Communist Party.

Source: Guangming Daily, August 19, 2013
http://epaper.gmw.cn/gmrb/html/2013-08/19/nw.D110000gmrb_20130819_2-02.htm

Briefings | | |   Information/Technology

The CCP Will Hold the Third Plenary Session of the 18th Central Committee in November

The Chinese Communist Party’s General Secretary Xi Jinping presided over a Politburo Meeting of the CCP Central Committee on August 27, 2013. The Politburo Meeting has decided to hold the Third Plenary Session of the 18th CCP Central Committee in Beijing in November of 2013. The Politburo Meeting on August 27 approved the following:

  1. a 2013-2017 work plan to establish and improve the system for punishing and preventing corruption;
  2. a document concerning local governments’ functional transformation and institutional reform;
  3. a pilot free trade zone in Shanghai.

All reforms must be done within the boundary of socialism with Chinese characteristics.

Source: Xinhua, August 27, 2013
http://news.xinhuanet.com/politics/2013-08/27/c_117116994.htm

Briefings | | |   Government/Politics

Huanqiu: Obama Needs to Take Time and Think More before Taking Military Action against Syria

On August 25, 2013, Huanqiu (the Chinese edition of Global Times) published an editorial titled, “Military Strike against Syria? Obama Needs to Take Time and Think More before Taking Action.” The article stated, “Because of Russia and China’s objections, the UN Security Council cannot possibly pass a mandate authorizing military strikes against Syria. If the United States and NATO want to attack Bashar Assad’s regime, they may use the ‘Kosovo Model’ and air strike on Syria without a UN mandate.”

According to the article, even if Western countries can oust Bashar from his leadership position; it does not mean that a stable situation will arrive in Syria.

Source: Huanqiu, August 26, 2013
http://opinion.huanqiu.com/editorial/2013-08/4284175.html

Briefings | | |   Geo-Strategic Trend

China News: Foreign Exchange Balance Declined Starting Two Months Ago

China News recently reported that, based on data released by the Chinese central bank, the Chinese foreign exchange reserve has been shrinking rapidly for two months now. In July alone, the total declined by RMB 24.5 billion (around US$4 billion). This could be one of the key causes of tight market liquidity. Experts expressed the belief that the foreign exchange balance decline could be the result of two forces: (1) the US Federal Reserve clearly intends to exit its QE (Quantitative Easing) strategy; (2) the Chinese State Administration of Foreign Exchange is requiring banks to increase their foreign exchange reserve. It is widely expected that international “hot money” will be leaving emerging markets and this trend will continue to impact the Chinese market where the expectation of depreciation in the Chinese currency is high.
Source: China News, August 21, 2013
http://finance.chinanews.com/cj/2013/08-21/5186110.shtml
Briefings | | |   Economy/Resources

Xinhua: Significant Policies on Industrial Overcapacity Soon to Be Announced

Xinhua recently reported that, according to high ranking officials in the Ministry of Industry and Information Technology, the Ministry will jointly release, in conjunction with the Development and Reform Commission, an “overall resolution plan for overcapacity.” The plan is being finalized and will be officially put in place very soon. The plan will cover key industries and will take different approaches for different industries. The primary principles that this grand plan follows are: (1) expanding domestic market consumption; (2) moving production capabilities overseas; (3) reorganizing existing companies for optimized output; and (4) retiring high energy consumption and high pollution manufacturers. Focal controls will be applied to industries like steel, cement, electrolytic aluminum, and flat glass. Environmental protection rules will play a very significant role in this round of policy implementation. The China Banking Regulatory Commission (CBRC) is also involved in the planning process to ensure that necessary financial support can be arrange for adjustments required in various industries.
Source: Xinhua, August 20, 2013
http://news.xinhuanet.com/energy/2013-08/20/c_125202878.htm
Briefings | | |   Government/Politics

People’s Daily: China’s Shipbuilding Industry Makes No Profit

People’s Daily recently reported on the tough situation the entire Chinese shipbuilding industry faces. According to the data that the China Association of the National Shipbuilding Industry (CANSI) released, the industry is suffering a major decline in profits. By the end of July, 80 key companies that the association monitored had a total profit of only RMB 200 million yuan (around US$33 million). At the same time, these companies are unable to collect the pending payments that their customers owe them. As of now, the industry is owed payments totaling RMB 100 billion (US$16.33 billion). This financial dead lock was partially caused by the recent sharp decline in shipbuilding prices. This has led many customers to believe that their original contract price was unfairly high. Cash flow in the shipbuilding industry is becoming a major challenge, making it much harder to get a loan from any bank. Competition from Japan is also an important factor. Since the beginning of the year, the Japanese yen has depreciated 20 percent.
Source: People’s Daily, August 22, 2013
http://gz.people.com.cn/n/2013/0822/c194844-19370272.html
Briefings | | |   Economy/Resources

Survey Results Show College Students Benefit from Microblogs

On August 19, Beijing Youth League and the Psychology Institute of the Chinese Academy of Sciences published the results of a survey on how Microblogs affect Chinese college students. The results showed that out of 10,686 students who took the survey, only 52.6 percent were satisfied with their life. In terms of the positive influence Microblogs had on the college students, close to 40 percent of the students found Microblogs helped them with their studies, 39.28 percent said it helped them to improve their job skills and 46.37 percent said it helped push them to explore opportunities to start their own business. Moreover, 68.12 percent of those surveyed think Microblogs enable them to participate actively in social welfare events, while 74.79 percent thought Microblogs bring positive energy to society.

The statistics from Sina Microblog showed that, by the end of June 30, one million account owners were college students. Of those 23.98 percent were around 20 years old or juniors in college. Guangdong Province ranked highest in the number of users, followed by Jiangsu, Hubei, Shandong Province, and Beijing.

Source: China Youth Daily, August 22, 2013
http://zqb.cyol.com/html/2013-08/22/nw.D110000zgqnb_20130822_2-12.htm

Briefings | | |   Social Stability

Experts Suggest Measures to Limit the Risks Caused by Local Governments’ Debt Crises

China Review News published an article on the financial risks China faces because of the magnitude of local governments’ debts and suggested ways to deal with the issue.

According to the article, local governments’ debts surpass that of the central government. Many of them face financial deficits, while the debt risk is much higher than the estimates. Reports indicate that, by the end of 2012, local governments’ debts reached 12 trillion yuan ($US1.96 trillion), which was 23.3 percent of GDP while the central government debt was 15 percent of GDP.

Several solutions were suggested on how to ease the local government debt crisis. First, local governments should be allowed more financial rights such as the right to receive increases in their share of tax revenues. Second, local governments must control their spending. Third, local governments should improve their financial capacity in developing basic infrastructure while assisting in the development of private businesses. Finally, local governments must be transparent in their financial spending and strengthen the system of checks and balances.

Source: China Review News, August 26, 2013
http://www.chinanews.com/gn/2013/08-26/5203417.shtml

Briefings | | |   Economy/Resources