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Outlook: Actively Respond to the New Union of Western Countries

[Editor’s Note: Outlook published an article discussing how the U.S. has shifted its strategy from focusing only on the Asia Pacific area to establishing stronger ties with the European countries in order to counter the rise of the emerging powers such as the BRICS countries. This "new union" of Western countries will inevitably have an impact, whether visible or hidden, on China. The author is Chen Xiangyang from the Institute of World Political Studies, China Institute of Contemporary International Relations. A translation of the article follows.] [1]

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People’s Daily: The West Makes Rules and Tries to Force China to Follow Them

“At the recent fifth round of China-U.S. Strategic and Economic Dialogue, U.S. Vice President Joe Biden said that, with China’s economic development, China needs to assume more international responsibility.” A People’s Daily [overseas edition] article warned that, “When faced with international media who, one after another, tout the ‘China responsibility theory,’ China should respond by avoiding the interference from this outside noise.” 

The article said, “Because of differences in values and social system, Western society has long viewed China with a bias, from the ‘China collapse theory’ to the ‘China threat theory’ to the current ‘China responsibility’ theory. All these are to deny and obstruct China’s economic development. They not only deny China’s positive role in promoting world economic recovery; they even blame China for the tight global supply of resources. This is actually a replica of the ‘China economic threat theory.’" 
According to Bai Ming, Deputy Director of the Department of International Market Research at International Trade and Economic Cooperation Research Institute of the Commerce Ministry, "The main purpose for Western countries to repeat the ‘China responsibility theory’ is to divert international attention." “At the same time, it is to impose more pressure on China. It is a common means Western countries use to oppress China.” 

Sun Zhe, Director of the Sino-U.S. Relations Research Center at Tsinghua University said, "The United States wants China to take more responsibility. The intention is to [make China] use ‘fair’ competition with them in accordance with the rules set by the United States and other Western countries." "China cannot afford to and will not take action that is inconsistent with the rights and obligations of China’s [actual] responsibility." 

Source: People’s Daily (overseas edition), republished by Xinhua, July 20, 2013 http://news.xinhuanet.com/world/2013-07/20/c_125037696.htm

Xinhua: Loyalty to the Central Government is the Key to Stability

Xinhua published a commentary shortly after its report that Bo Xilai, the former Party Chief of the Chongqing Municipality, was charged with bribery, corruption, and abuse of power. The commentary emphasized loyalty to the central government.

“Safeguarding a unified central government and its decrees and following the central leadership … remain the steadfast mainstream of our times.” 
“China’s historical experience has repeatedly shown that only safeguarding the central authority can ensure the long-term stability of our country. The central government makes policies and changes personnel from the perspective of the whole country. Its decisions are based on the foundation of the national interest. Policies and personnel changes may touch local interests, but minor matters need to be subordinate to major ones in order for the reform, development, and stability of the country to benefit.” 
[Editor’s note: Boxun reported that Bo Xilai and Zhou Yongkang had planned to stop Xi Jinping’s succession and replace him (IBT February 2012).]
 

Source: Xinhua, July 25, 2013 
http://news.xinhuanet.com/comments/2013-07/25/c_116681147.htm

Xinhua: Bo Xilai Charged with Bribery, Corruption, and Abuse of Power

Xinhua reported that on July 25, the Jinan Municipal People’s Procuratorate, Shandong Province, filed charges with the Jinan Intermediate People’s Court against Bo Xilai for bribery, corruption, and abuse of power. 

“During the investigation, in accordance with the law, the prosecutors informed defendant Bo Xilai of his legal rights, questioned the defendant, and listened to the views of defense counsel that he appointed. The Jinan Municipal People’s Procuratorate indictment charged that the defendant Bo Xilai, as a civil servant, took advantage of his position, sought profit for others and illegally accepted extremely huge amounts of money and property from others; that he embezzled huge amounts of public funds; and that his abuse of power resulted in major losses to the State and the people. The circumstances are especially serious. According to the law he should be held and criminally prosecuted for taking bribes, embezzlement and abuse of criminal prosecution, and should be punished accordingly.” Bo Xilai, the former Communist Party Chief of Chongqing Municipality, Sichuan Province, has been in detention since April 2012. 

Source: Xinhua, July 25, 2013 
http://news.xinhuanet.com/legal/2013-07/25/c_116680877.htm

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

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

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

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