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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 to Expand Broadband Coverage

China’s State Council issued a notice indicating that China will promote broadband infrastructure development in both urban and rural regions. The development plan will have two phases. The first phase will be completed by 2015 with residential coverage reaching 50 percent, 3G telecommunication coverage reaching 32.5 percent, and broadband access reaching 20 Mbps (mega bites per second) in urban and 4 Mbps in rural regions. The second phase will be completed by 2020 with residential coverage reaching 70 percent, 3G telecommunication coverage reaching 85 percent, and broadband access reaching 50 Mbps (mega bites per second) in urban and 12 Mbps in rural regions.

Source: Xinhua, August 17, 2013
http://news.xinhuanet.com/politics/2013-08/17/c_116981979.htm

Briefings | | |   Information/Technology

Hotel Industry Faces Tough Challenges

The China Tourist Hotel Association published a consolidated report with information from over 2,000 hotels having the level of three stars and above. It included the financial results for the first half of 2013. The consolidated results showed that the average occupancy rate was 53 percent, which was below the breakeven rate of 60 percent. This was down six percent from the same period in 2012. The average hotel revenue was down 8.5 percent; food and beverage revenue was down 17.2 percent; meeting and conference revenue was down 17.8 percent, which was the greatest amount from all areas. The total revenue was down 11.8 percent. The results also suggested that 31.1 percent of the hotels are not optimistic about their business opportunities in the future.

The report stated that China’s hotel and restaurant industry had experienced double digit growth over the past thirty years. The growth rate even exceeded 22 percent over a period of twenty of those years.

The drop in hotel revenue resulted from the following four circumstances. Government entities decreased their spending due to the tightened meals and entertainment policy. Foreign tourism was down five percent due to the world’s economy. The downturn in the stock market had an impact. The government’s misjudgment of the market resulted in an excess supply. This last circumstance was cited as the major reason for the lowered occupancy rates.

Source: People’s Daily, August 18, 2013
http://finance.people.com.cn/n/2013/0818/c1004-22601996.html

Briefings | | |   Economy/Resources

China Review News: The Challenges and Subversive Issues China Faces Today

China Review News carried an article which Beijing Times originally published, written by the director of the Public Administration Department of the China National School of Administration. The article was about the challenges and subversive issues that China faces during the current transitional period. The article stated that there is an urgent need for system reform and for strategies to create a better interpersonal environment and a society with a high level of trust among the people. It also cited the lessons from the failure of communist ideology in the Soviet Union. The article indicated that the cause was the lack of a long term strategy. This eventually led to the people distrusting the Party and, eventually, to the collapse of the country.

The top four challenges listed in the article were: 1) a decrease in the government’s authority; 2) departments and organizations that were not responsible for the interest of the nation and its people; 3) a lack of advancement in renovation in socialist ideology so that it fits modern China; 4) a rise in the subjective consciousness of Chinese citizens.

The five subversive issues were: 1) a widening gap between the rich and poor. 2) social issues related to farmers, the rural regions, and agriculture. 3) worsening corruption. 4) unemployment among college graduates. 5) a crisis in social distrust.

Source: China Review News, August 15, 2013
http://www.zhgpl.com/doc/1026/8/0/6/102680604.html?coluid=151&kindid=0&docid=102680604&mdate=0815140745

Briefings | | |   Government/Politics

The Expenses Some Government Leaders Have Posted Are Shocking

A Xinhua reporter conducted an investigation in Beijing, Hebei, Sanxi, Jiangsu, and other areas into government leaders’ expenses. He found that the expenses that some government leaders have posted were shockingly high.  The expense items are too many and diverse to enumerate, but the expense amounts are getting bigger and bigger. As an example, the report described how a retired provincial leader spent more than 3 million yuan [about US$500,000] in one stay in the hospital. 

Jia Kang, director of the Finance Division of the Ministry of Finance, said that those in the municipal deputy position are spending more than 400,000 yuan per year. In more affluent areas, the expenses exceed 100 million yuan. According to many grassroots officials, this is just a basic amount to spend on their duties. A deputy position at this level is equipped with at least three vehicles, a sedan, an SUV, and a commercial vehicle. In addition, the position comes with a secretary, drivers, and private use of the vehicles. The waste is tremendously high.

Xinhua, August 16, 2013 
http://news.xinhuanet.com/fortune/2013-08/15/c_125173077.htm?prolongation=1

Briefings | | |   Social Stability

Antitrust Investigation Expands to Petroleum, Telecommunications, Automobiles, and Banks

Xu Kunlin, an official from the National Development and Reform Commission (NDRC), China’s antitrust enforcement agency, indicated that the next target of antitrust investigations will be closely related to consumers and that petroleum, telecommunications, automobiles, and banks are all in the scope of investigation. In particular, in respect to banks, Xu stated that banks that fix rates will be investigated after the reform of market interest rates. 

Since the beginning of the year, NDRC has conducted antitrust investigations and issued fines to companies producing liquid crystal panels, liquor, milk powder, and gold jewelry. The investigation of automobiles has covered domestically produced vehicles as well as foreign imports. 

Source: Xinhua, August 16, 2013                                                                                             http://news.xinhuanet.com/fortune/2013-08/16/c_125179650.htm

Briefings | | |   Economy/Resources

Huanqiu: Extreme Political Resistance Has No Future in China

On August 14, 2013, Huanqiu published a commentary on overseas dissidents entitled, “The Overseas Democracy Movement Must Swallow the Bitter Pill of Marginalization.” The commentary stated, “Recently, a number of overseas democracy activists have been connecting with one another on the Internet, bragging about returning home one day next year to make trouble, or about congregating outside of and ‘besieging’ the Chinese government’s overseas establishments around the world. Names forgotten by or unknown to the Chinese people flash like a meteor across the media.” 

Huanqiu said that only about 200 people make up the overseas democracy movement. Engaging in political activities has become their means of survival. The commentary stated repeatedly that democracy activists have been marginalized. “They need to ‘make something happen’ and, at the minimum, generate some noise in the field of public opinion.” “Their experience shows extreme political resistance has no future in China.” 
Source: Huanqiu, August 14, 2013 
http://opinion.huanqiu.com/opinion_world/2013-08/4239302.html
Briefings | | |   Government/Politics

Russian Media Say Chinese Military Will Be the Strongest in the World in 20 Years

Huanqiu (Global Times) published a report from a Russian media Military Messenger’s publication about China’s military power and development. It said, “Over the past decade, the Chinese army has gone through a complete makeover and confidently advanced to be in the top three of the world’s most powerful armies. It may even be too conservative to say that the Chinese army ranks third.” 

The article stated, “While keeping the quantity of its military equipment almost unchanged, the Chinese PLA has updated the quality of its equipment by leaps and bounds. The production capacity of Chinese military enterprises is very large. There are three countries in the world whose military enterprises currently have the ability to manufacture almost all types of weapons and equipment, not only to meet domestic demand, but also for export. China is one of them.” 
The article admitted that the Chinese army is technologically backward in some particular areas, but the large quantities enable it to compensate. The numerous military enterprises can ensure an uninterrupted weapon supply in times of war. In addition, Chinese military enterprises in all areas do not have the issue of overreliance on foreign countries for spare parts and technical help. 
The article concluded that, if nothing unexpected happens, in 15 to 20 years the Chinese PLA will be the world’s most powerful army in all respects. 

Source: Huanqiu, August 14, 2013 
http://mil.huanqiu.com/observation/2013-08/4240291.html

Briefings | | |   Defense/Military

Hurun Wealth Report 2013 Released

On August 14, the Hurun Research Institute, together with GroupM Knowledge, released the GroupM Knowledge-Hurun Wealth Report 2013. The 40-page research report analyses China’s wealthy people broken down according to their regional distribution across China, as well as their investments, consumption preferences, and how they use the media.

The number of millionaires (defined as individuals with a personal wealth of CNY 10 million, equivalent to US$1.6 million and GBP 1 million) grew by three percent in 2012 to 1.05 million, while the number of the super-rich (defined as individuals with a personal wealth of CNY 100 million, equivalent to US$16 million and GBP 10 million) reached 64,500, up two percent from the previous year. The growth, the slowest in five years, has decelerated for the second consecutive year.

Beijing remains in first place with an increase of 5,000 to 184,000 millionaires, and with an increase of 200 to 10,700 super rich. Guangdong ranks second with 172,000 millionaires and 9,600 super rich. Shanghai follows with 147,000 millionaires and 8,500 super rich.

A quarter of the millionaires say they are very confident about China’s economy in the coming two years, a decline of three percent from the previous year. The confidence level of the year before was 54 percent. Sixty-six percent of the millionaires say they are fairly confident – a two percentage point increase from a year earlier, while nine percent of millionaires say they are not confident – a two percentage point increase from a year earlier. This is the highest number in last three years.

Source: Xinhua, August 15, 2013
http://news.xinhuanet.com/2013-08/15/c_125174202.htm

Briefings | | |   Economy/Resources