Chinascope – Page 835

Xinhua: In Chaos China, Would be Worse Off than the Former Soviet Union

On August 1, 2013, Xinhua published a commentary stating that, if China were to fall into chaos, it would be worse off than the former Soviet Union. The commentary compared China today to the former Soviet Union on the eve of collapse. It accused Internet bloggers of “spreading rumors every day, fabricating negative social news, creating an apocalyptic scene of China’s imminent collapse, denigrating the existing socialist system, and promoting the European and American capitalist and constitutional model.” It also blamed the Internet bloggers for inciting hatred toward the government to trigger social unrest in China.

“Then let’s look at the situation after the disintegration of the Soviet Union, which went through unrest, to see if the Russian people have reached the shore of happiness with universal values.”

“Today the Russian people have really awakened to the fact that democracy, as depicted by Europe and the United States, deceived them, only to lose everything they once had. This means that Russia has moved from a major power to a second or third class economy that plays only a small role in the world.” The commentary predicted that China would be several times worse off than Russia. The socialist system is not the best, “but it is definitely better than what Europe and the United States would impose on China. At least we now move forward in development. This is the awakening of the Chinese!”

Source: Xinhua, August 1, 2013

http://news.xinhuanet.com/world/2013-08/01/c_116766533.htm

Briefings | | August 2, 2013 | Government/Politics

Military Officer: Strong Military Dream is the Guarantee to Ensure the Realization of China Dream

In Beijing on July 30, 2013, The Central Propaganda Department, the Work Committee for Offices Directly under the Central Government, the State Organs Work Committee of the Central Government, the Ministry of Education, the PLA General Political Department, and the Beijing Municipal Party Committee jointly held the third report on education series on socialism with Chinese characteristics and the China dream. Bi Jingjing, Vice President of National Defense University, gave a report titled "A Strong Army Dream: The Powerful Guarantee to Ensure the Realization of the China Dream."

The report pointed out that the dream of a powerful nation and a strong military dream are closely related and support each other. A dream of a powerful nation harbors a dream of a strong military; a dream of a strong military provides support for the dream of a powerful nation. Without a strong military, national security and development cannot be guaranteed. At present, the more advanced the economic and social development, the more urgent is the security need and the more urgent it is to strengthen the military. Therefore, we must seize the opportunity, meet the challenge, and accelerate the modernization of China’s national defense and the armed forces so as to provide strong power for the realization of the China dream.

Source: People’s Daily, July 31, 2013

http://politics.people.com.cn/n/2013/0731/c1026-22394690.html

Briefings | | August 1, 2013 | Government/Politics

China Development Bank: A State-owned Financial Institution Serving the State’s Interest

On July 31, Qiushi published an article by Hu Huabang, the Communist Party Secretary and Chairman of the China Development Bank (CDB), a State-own commercial bank, on the success of CDB as a State-owned financial institution serving the interest of the State.

CDB provides medium to long-term financing in priority sectors and projects to implement China’s national economic strategy. Eighty percent of its financing is in the sectors of energy, agriculture, telecommunications, and public infrastructure and 60 percent is in midwest and northeastern traditional industrial bases. Further, it has financed major overseas energy projects in foreign countries, including Russia, Pakistan, and Turkey.

According to Hu, currently in China, CDB is the largest bank for medium and long-term financing, the largest bond bank, the largest foreign investment and financing cooperative bank, and the largest development financial institution.

Source: Qiushi, July 31, 2013

http://www.qstheory.cn/jj/jcbw/201307/t20130731_254614.htm

Briefings | | August 1, 2013 | Economy/Resources

Excess Capacity Problems May Lead China to a Long-term Depression

On July 28, 2013, China Review News published an article on China’s excess capacity problems, where demand for products is less than the potential supply. The overcapacity of China’s industries has spread from traditional industries to emerging industries. In the first quarter of 2013, the capacity of China’s industrial enterprises that was actually utilized was only 78.2 percent. The capacity that has been utilized in some major industries has dropped below 75 percent, for example, building materials (72.5 percent), the railway, shipping, and other transportation equipment manufacturing industry (73.6 percent), and the coal mining industry (74.9 percent). There has been a definite and ongoing surplus in certain industries. In 2012, the overcapacity in China’s steel industry was 21 percent; cement’s overcapacity reached 28 percent; the overcapacity in electrolytic aluminum production reached 35 percent; and the overcapacity in the automobile industry was 12 percent. China’s solar photovoltaic cell production capacity accounts for 60 percent of what is needed for the whole world, but the excess capacity of PV cell production has reached 95 percent.

According to the article, excess capacity problems may lead China to a long-term depression. The article provides several suggestions on how to solve the problem, such as discouraging local governments from making further investments.

Source: China Review News, July 28, 2013
http://www.zhgpl.com/doc/1026/5/0/9/102650985.html?coluid=53&kindid=0&docid=102650985&mdate=0728071042

Briefings | | July 31, 2013 | Economy/Resources

People’s Daily: China’s Dream Is a Dream to Establish a New Fair and Rational International Order

On July 29, 2013, People’s Daily published an article titled, “The China Dream’s Significance for the World.” The article explained that the China dream has multiple perspectives. At the end of the article, it concluded:

“China’s dream is a dream to establish a new fair and rational international order. In today’s world, the old, unfair, and irrational international order has not fundamentally changed; it is a major cause of local turbulence in the world.”

Source: People’s Daily, July 29, 2013
http://opinion.people.com.cn/n/2013/0729/c1003-22355697.html

Briefings | | July 31, 2013 | Government/Politics

Xinhua: The Economic Slowdown Must Not Exceed a Tolerable Bottom Line

On July 30, 2013, the CCP Central Committee Political Bureau met and discussed the direction of China’s economy. Based on that discussion, Xinhua published an article, also on July 30, 2013, suggesting that China’s economy is in a “ridge climbing” period (like climbing a steep and difficult slope). Therefore, it is important to “ensure the economy runs within reasonable parameters.”

The article stated that the goal is to “stabilize the people’s mind.” China must not let the economy fluctuate up and down. The economic slowdown must not exceed a tolerable bottom line. The stability-oriented macro-policies do not allow any big adjustments. The government is the final decision maker in terms of macro-policies, micro-policies, and social policies so as to build a stable economic and social development system in China.

Source: Xinhua, July 30, 2013
http://news.xinhuanet.com/2013-07/30/c_116746038.htm

Briefings | | July 31, 2013 | Government/Politics

People’s Daily: Ministry of Commerce Responded to the Idea of Foreign Investments Fleeing China

People’s Daily recently reported that China’s Ministry of Commerce suggested that the so called “phenomenon” of foreign investments fleeing China for Southeast Asia is just a few OEM (Original Equipment Manufacturer) factories leaving for neighboring countries. The minor scale does not constitute a trend. However the Chinese government does recommend that investors move to the Western region inside China where they can realize the same benefits. Starting with the end of year 2011, the actual foreign investment level has been on the decline. Observers expressed the belief that investors were moving their money to Southeast Asia where they found the lower labor costs more attractive. The government found there was a 9.18 percent decline in the number of new companies founded based on foreign investment. As an answer to this decline, in the first half of this year, the Chinese government simplified the process of approving foreign investments.

Source: People’s Daily, July 27, 2013

http://finance.people.com.cn/n/2013/0727/c1004-22346039.html

Briefings | | July 30, 2013 | Government/Politics

China Released First List of Sunsetting Industry Sectors

China.com recently reported that the Chinese Ministry of Industry and Information Technology released the official 2013 list of the industry sectors planned for sunsetting. The first batch incorporates 19 industrial sectors which include iron and steel, coke, ferroalloy, calcium carbide, aluminum, copper (including recycled copper) smelting, lead (including secondary lead) smelting, zinc (including recycled zinc) smelting, cement (clinker and grinding), plate glass, paper, alcohol, monosodium glutamate, citric acid, tanning, printing and dyeing, chemical fiber, and lead-acid batteries (plates and assembly). The Ministry required all production capacity with old-generation technologies to cease operation by this September and to be disassembled for retirement by the end of the year. None of the capacity is allowed to be transferred to other regions. All individual companies covered in the scope of this government list have been identified and publicly listed on the local government websites as well as in primary local media publications.

Source: China.com, July 25, 2013

http://finance.china.com.cn/industry/hotnews/20130725/1671753.shtml

Briefings | | July 30, 2013 | Economy/Resources

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.”

The CCP’s Performing Arts Troupes in the U.S.