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People’s Daily: Chinese Leadership Structure Better than the U.S. Presidency

People’s Daily recently published a commentary by Professor Hu Angang, Dean of the Institute of China Studies at Tsinghua University. The commentary suggested that the Chinese “joint leadership” structure is more innovative than and superior to the U.S. Presidency coupled with the “dual-party system.” Hu indicated that the U.S. system suffers from a loose organizational structure of political parties, poor mobilization of capabilities, weak political solidarity, a low level of wisdom integrated into its decision-making, and hollow promises made by lying candidates. The U.S. system guarantees ignorance of substantive issues and maximizes delays. The U.S. political structure not only ensures a balance of power, but also introduces mutual constrains and a divided country. The President is often unable to deliver on his promises, as clearly demonstrated by President Obama, who frequently lacks Congressional support. Hu expressed the belief that the 200-year-old U.S. design is largely outdated, while the Chinese Communist Party is structured based on the lessons learned in recent human history, which has been highly competitive. 
Source: People’s Daily, August 16, 2013
http://hb.people.com.cn/n/2013/0816/c194063-19321669.html

Beijing Apartment Rental Market Prices Continue to Increase

Sina Financial News recently reported that Beijing’s apartment rental prices have been increasing for the past 52 months. The national price has been increasing for 42 months. Though the law bans such practices, it is not unusual for seventeen people in the capital city to share a three-room apartment. There are millions of couples living in apartments with less than 20 square meters. Based on the international standard, the cost of rent should be less than 30 percent of a family’s income. In Beijing, the official data for 2012 shows it is 39.3 percent. However, Beijing’s current population and real estate prices are both showing rapid growth. The city government has attempted several times in the past few years to ban overloaded rental apartments with no success. A new round is being implemented in addition to the plan of introducing the Residence Permit System. Rental agents are not really worried, however. They believe that this new effort will fail just like the previous ones.
Source: Sina Financial News, August 16, 2013
http://finance.sina.com.cn/china/20130816/234516476514.shtml

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

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

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

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

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

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