Chinascope – Page 837

Levin Zhu: China’s Real Personal Income Growth Has Dropped over the Past 10 Years

Levin Zhu, President and CEO of China International Capital Corporation, said on China Central Television’s (CCTV) morning financial program that, over the past 10 years, China’s economy has maintained steady growth, but the growth of the Chinese people’s real income has been declining. Personal savings account for only 10% of national savings. This is not conducive to stimulating a consumer-driven economy. Only by raising the people’s income level as quickly as possible, can consumption play the role of boosting the economy.

Levin Zhu is the son of former Premier Zhu Rongji. Last July, Fortune magazine named him one of "Asia’s 25 most Influential Business Leaders."

Source: Website of China Securities Journal, re-posted by www.sohu.com, July 25, 2013
http://business.sohu.com/20130725/n382540982.shtml

Briefings | | July 25, 2013 | Economy/Resources

Luo Yuan: We Must Be Vigilant about the U.S.’s “Anti-Access and Area Denial” against China and Iran

On July 19, 2013, the Chinese Strategic Culture Foundation officially released its "2012 Japan’s Military Assessment Report" and the "2012 U.S. Military Assessment Report." On this subject, the People’s Blog [from People’s Daily] interviewed Luo Yuan, the Executive Vice President and Secretary General of the China Strategic Culture Association, and also the Major General of the China Society of Military Science. Luo expressed the belief that the United States has advanced its combat theory with some new features; Luo also conducted an extensive analysis of the concept of "anti-access and local denial."

In 2012, the United States kept developing the concept of "Air Sea Battle" and came out with such concepts as the "Joint Operational Access Concept," "Gaining & Maintaining Access," "The Capstone Concept for Joint Operations: the Joint Forces of 2020," "Globally Integrated Operations," as well as other new concepts.

Luo said that the U.S. has very specific targets in proposing these new concepts, namely, aiming at China and Iran. The United States named China and Iran in its defense strategy guide. "Therefore, we must remain vigilant."

Meanwhile, Luo also pointed out that, from an academic point of view, "The U.S. military theories are worthwhile tools to use for learning. While exposing the American conspiracy of hegemony, China should really strengthen its self-development so that our country truly possesses anti-access and area-denial capabilities."

Source: People’s Daily, July 19, 2013

http://military.people.com.cn/n/2013/0719/c1011-22257132.html

Briefings | | July 25, 2013 | US-China Relations

State Official: Economy Continues to Decelerate; Major Adjustment Probable

Dr. Li Zuojun, Deputy Director of the Resources and Environment Policy Institute at China’s State Council’s Development Research Center, predicted that, in the second half, the Chinese economy will continue to decelerate and that a major adjustment is possible.

“At the beginning of the year, my take on the 2013 economic growth situation was that the economic growth rate might first increase and then decrease and that, while we might see an upward trend in the first half, in the second half of the year, the economy might experience some downward pressure. The reality is that, in the first quarter, GDP only grew 7.7 percent, lower than last year’s fourth quarter growth. Now it seems the second quarter may be even lower than the first quarter, possibly two percentage points lower. This year the economy will likely be on a continuous downward trend, unless relatively strong stimulus measures are taken to reverse this trend. Nevertheless, right now it appears that the central government’s policy is to tolerate some decline in economic growth in order to pursue efficient and cost-effective growth while preventing systemic regional financial risks. As there is a low probability of strong stimulus measures, [I] do not rule out a major economic adjustment in the third and four quarters.”

Source: Caijing.com, July 23, 2013

http://blog.caijing.com.cn/expert_article-151696-56649.shtml

Briefings | | July 25, 2013 | Economy/Resources

Empty Ghost Towns in China Indicate Burst Housing Bubble

On July 21, 2013, China Review News published an article, which was originally from http://www.xinmin.cn/, on China’s “ghost towns.” According to the article, a ghost town is an empty town in China where the local government has built a lot of new apartments and commercial buildings at great cost. There are 12 large ghost towns in China, four of which are in Inner Mongolia.

In 2009, China’s real estate investments accounted for 10 percent of China’s GDP. In contrast, in the United States, real estate investment does not exceed 6 percent of its GDP. The writer believes that some housing bubbles have already burst.

Source: China Review News, July 21, 2013
http://www.zhgpl.com/doc/1026/4/0/4/102640407.html?coluid=53&kindid=0&docid=102640407&mdate=0721073650

Briefings | | July 24, 2013 | Grapevine

IMF: China’s Total Public Debt Exceeds 50 Percent of Its GDP

On July 21, 2013, China Review News published an article titled “China’s Local Governments Owe Over US$12 Trillion in Debt; a Dangerous Sword Hangs over the Head of the Economy.” Since 2010, local governments’ debts have become the sword of Damocles hanging over China’s economy. According to China’s National Audit Office statistics, the amount of the debt that local governments owe exceeds US$12 trillion. However, The International Monetary Fund (IMF) believes that China’s total public debt exceeds 50 percent of its GDP.

According to the article, China needs large scale financial reform as well as fiscal reform over the next 10 to 30 years.

Source: China Review News, July 21, 2013
http://www.zhgpl.com/doc/1026/4/0/5/102640566.html?coluid=45&kindid=0&docid=102640566&mdate=0721100348

Briefings | | July 24, 2013 | Economy/Resources

China Review News: Don’t Break the Red Line of 1.8 Billion Mu of Arable Land in China

On July 21, 2013, China Review News published an article explaining why it is important to safeguard the 1.8 billion mu of arable land in China. As the urbanization in China is spreading fast, some urbanization supporters propose to break the red line of the 1.8 billion mu of arable land so as to further expand urban construction. The article explained that the 1.8 billion mu of arable land is the minimum bottom line to ensure food security in China.

Source: China Review News, July 21, 2013
http://www.zhgpl.com/doc/1026/4/0/4/102640403.html?coluid=53&kindid=0&docid=02640403&mdate=0721073613

Briefings | | July 24, 2013 | Economy/Resources

China News: Huawei Rejected the U.S. and Britain’s Claims about Its Spying

China News recently reported that Chinese network equipment vendor Huawei insisted on its innocence in the situation in which the British government decided to conduct an investigation into Huawei’s Network Security Assessment Center in Britain. The investigation is in response to the requirement that the Intelligence and Security Committee of the British Parliament issued. Huawei suggested that the goal of its British operations is to enhance the security level of its customers. In 2012, Huawei invested 1.3 billion pounds in Britain. At the same time, Huawei also denied the accusation that former CIA Chief Michael Hayden made that it has been spying for the Chinese government. Huawei claimed that it purchases US$6 billion worth of products from U.S. companies annually, which generates tens of thousands of U.S. jobs. Huawei asked for the evidence that can support Mr. Hayden’s position.

Source: China News, July 19, 2013

http://finance.chinanews.com/it/2013/07-19/5064316.shtml

Briefings | | July 23, 2013 | Information/Technology

Global Times: Japan Opposes China’s Oil Development in East China Sea

Global Times recently reported that Japanese Chief Cabinet Secretary Yoshihide Suga issued strong statements at a press conference on July 18. Yoshihide stated that Japan “absolutely opposes” the China National Offshore Oil Corp. (CNOOC) attempt to develop seven new oil and natural gas fields in the East China Sea. The seven new sites are located near the so-called “middle line.” The Japanese government has not yet received any “clear reply” from China on its official inquiry about this new development plan. The Chinese Ministry of Foreign Affairs commented that China never accepted the so-called “middle line,” which was solely an invention of the Japanese government. Chinese legal expert Xin Guangmei suggested that there has never been a legal sea-based borderline between China and Japan. China has its own opinion on how to draw the border which is different from the Japanese “middle line.” The Japanese “media show” of finger-pointing at China on the new oil development plan is just another attempt to destroy the foundation of a healthy border negotiation.

Source: Global Times, July 18, 2013

http://world.huanqiu.com/exclusive/2013-07/4146196.html

Briefings | | July 23, 2013 | Geo-Strategic Trend

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.