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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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Number of Chinese Netizens Reaches 591 million, Mostly Mobile Phone Users

On July 17, the China Internet Network Information Center (CNNIC) released its 32nd issue of the China Internet Development Statistics Report. It showed that, as of the end of June 2013, the number of China’s netizens reached 591 million. Of those, the mobile phone users reached 464 million, or 78.5 percent.

The first half of this year has seen 26.6 million new netizens, 70.0 percent of whom use their mobile phone to access the Internet. The Internet has also expanded rapidly in rural areas, with 54.4 percent of the new Internet users coming from rural areas. The CNNIC report attributed the rapid increase to the development of the 3G network, wireless network, and mobile phone app innovations. Among all means of communications, Chinese netizens still favor instant messaging. As of the end of June 2013, 497 million people were users of instant messaging. Of those, 397 million used their mobile phones to send and receive messages.

Source: People’s Daily, July 18, 2013
http://finance.people.com.cn/n/2013/0718/c1004-22234040.html

Briefings | | |   Information/Technology

Xinhua: GSK Is not Alone

On July 14, 2013, Xinhua published an article commenting on the Chinese bribery investigation into the British  pharmaceutical company, GlaxoSmithKline (GSK), stating that GSK is just one of many foreign firms that have been involved in bribery in China. “In recent years, multinational companies have caused China to become one of the hardest hit in the commission of bribery.”

According to Xinhua, in December 2012, Eli Lilly settled for $30 million when the U.S. Securities and Exchange Commission charged it with bribing foreign government officials to expand its market in Russia, Brazil, China, and Poland. In August 2012, Pfizer paid $60 million in fines for offering bribes to government medical staff in eight countries including China. Toward the end of 2008, Siemens was fined $1.3 billion for its corrupt practices involving five Chinese government-owned hospitals. It had paid tens of millions of dollars in bribes to physicians and lab personnel, ultimately resulting in huge orders for medical equipment.

“From the 1990s to the present, well-known multinational companies, including Morgan Stanley, IBM, Lucent, Wal-Mart, Diagnostic Products Corporation, Avery Dennison, and many others have been charged with bribery in China.” 
Source: Xinhua, July 14, 2013 
http://news.xinhuanet.com/politics/2013-07/14/c_125005890.htm
Briefings | | |   Economy/Resources

BBC Chinese: It Would Be Hard to Solve China’s Environmental Problems in 20 to 30 Years

According to a joint study by Chinese and Western scholars from the Massachusetts Institute of Technology, Tsinghua University, Beijing University, and a professor at the Hebrew University of Israel, severe air pollution in northern China reduces the average life expectancy by at least 5.5 years. However, in an interview with BBC Chinese, Professor Song Yuqin from Beijing University’s School of Environmental Science and Engineering expressed his doubts about the “5.5 years life expectancy reduction” conclusion. “You do not need to take it (the conclusion) seriously.” In Prof. Song’s opinion, it is unlikely that smog could be eliminated in 20 to 30 years because China is in the process of development. He did, however, call on the government to take action because "the root cause still lies with the government."

Source: BBC Chinese, July 10, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/07/130710_china_environment_south_north.shtml

Briefings | | |   Social Stability

China’s State Council Councilor Says China’s Economy Is in Crisis

During the 2nd weekend of July 2013, Xia Bin, a councilor of China’s State Council, delivered a keynote speech at the 2013 APEC CEO China Forum. According to Xia, a financial crisis already exists in China right now. Xia told the audience, "We need to find ways to let the bubble burst and write off the losses we already have as soon as possible to avoid an even bigger crisis. … The deep adjustment means that economic growth will slow as expenses are paid; it will mean hard days; it will mean bankruptcy for some companies and financial institutions; and it will mean reform."

Source:  Beijing Times & MNI News, July 14, 15, 2013
http://epaper.jinghua.cn/html/2013-07/15/content_8994.htm
https://mninews.marketnews.com/content/china-govt-advisor-says-economy-crisis-debt-costs-spiral

Briefings | | |   Economy/Resources

The potential Risks China’s Financial System Faces

On July 17, 2013, 21cbh.com, a professional financial news website under the 21st Century Media Group in Mainland China, published an article titled, “The Potential Risks that China’s Financial System Faces.” According to the article, China’s financial system faces three potential risks: 1) the real estate market (real estate bubble); 2) local governments’ financing used for investments in land and real estate (the accumulated debt has reached over 12 trillion Chinese yuan); and 3) shadow banking.

Source:  21cbh.com, July 17, 2013
http://epaper.21cbh.com/html/2013-07/15/content_70897.htm?div=-1

Briefings | | |   Economy/Resources

Xinhua: Uncertainty about the Chinese Economy Lowers Confidence

Xinhua recently reported on some research that the firm Grant Thornton, an international organization of independent audit, tax, and advisory firms, had done on the business indicators of a number of Chinese companies. The study titled, International Business Report (IBR), revealed that 40 percent of the surveyed Chinese companies found the uncertainty that the economy faced was having a major impact on the growth of their businesses. The research results also showed that four percent of the companies felt optimistic about the future. This number had dropped 21 percent from the first quarter to the second quarter of this year. The study indicated that expectations of company sales, product prices, export volume, hiring plans, and profits had all dropped from the first quarter. Especially for the indicators of exports, employment, and profitability, the companies’ level of confidence dropped to a two-year low. Investments in research and development declined by 14 percent in the past 12 months; most of the companies were increasing their cash reserves. Grant Thornton concluded that there is no clear sign of an economic recovery for the Chinese market. The same report for the U.S. market showed a dramatic increase of 24 percent in the confidence level.

Source: Xinhua, July 11, 2013
http://news.xinhuanet.com/fortune/2013-07/11/c_116499670.htm

Briefings | | |   Economy/Resources

Yu Zhengsheng: Deepening the Fight against the Dalai Lama

Xinhua recently reported that Yu Zhengsheng, the Chairman of the National Committee of the Chinese People’s Political Consultative Conference and a member of the Politburo Standing Committee of the Communist Party, emphasized the importance of continuing and deepening the fight against the Dalai Lama. He made the comment during a trip to the Tibetan area of Gansu Province. Yu also called for more investments in the Tibetan regions to lift the people’s living standards. He suggested that the Tibetan people will provide better support for the Communist Party only when their living conditions are improved. Yu also visited some Buddhist temples and asked the locals to “love the country.” In a speech given to the local government officials, Yu pointed out that the “self-governance” idea that the Dalai Lama came up with is a complete violation of the Chinese Constitution and is an obvious attempt to divide the country.

Source: Xinhua, July 9, 2013
http://news.xinhuanet.com/politics/2013-07/09/c_116466690.htm

Briefings | | |   Government/Politics

Xinhua: Japanese Defense Whitepaper Aimed at China

Xinhua recently reported that the newly released Japanese Defense Whitepaper is full of false statements against China. The Japanese Cabinet approved the latest Whitepaper on July 9. It suggested that the Japanese government is pushing hard to counter the “Chinese military threat.” The language in the Whitepaper suggested that China’s military activities at sea are a threat to the safety not only of Japan but to the entire region as well. The report however expressed the belief that this is just a game the Abe administration is playing in order to justify its attempts to modify the Japanese constitution and to break the traditional military limitations Japan has had in place since the end of the Second World War. The Whitepaper claimed that China has taken a lot of “dangerous steps” to change the existing international order and that, in the past ten years, China’s defense budget has tripled while Japan’s showed a five percent decline. The Chinese government issued an official rebuttal immediately, saying that the Japanese allegations are simply lies and Japan is just looking for excuses to increase its defense spending.
 
Source: Xinhua, July 11, 2013
http://news.xinhuanet.com/mrdx/2013-07/10/c_132527928.htm

Briefings | | |   Geo-Strategic Trend