Chinascope – Page 840

Drop in China’s Foreign Trade Exacerbates Fears of Economic Slowdown

On Wednesday, July 10, the General Administration of Customs (GAC) released data showing that, in June, the total value of China’s imports and exports was two trillion yuan (US$0.3 trillion), down two percent from the same month last year. The decline in exports was as high as 3.1 percent. The data was beyond analysts’ expectations. Many expected China’s exports to grow at about four percent in June. Meanwhile the imports in June also fell by a lesser amount of 0.7 percent, indicating a weakness in China’s domestic demand.

Zheng Yuesheng, an official at GAC, worries about the severe challenges that China’s foreign trade faces. He predicted more difficulties in the second half. Zheng suggested that China needs to adjust the structure of its foreign trade to protect its products in the global market.

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

Briefings | | July 11, 2013 | Economy/Resources

China Presented a Wax Statue of Kim Jong Il to North Korea

On July 9, the International Liaison Department of the Chinese Communist Party Central Committee and the Great Man Wax Museum of China jointly organized a ceremony in Beijing in order to "present a wax statue of Comrade Kim Jong Il" to the Korean people. The North Korean delegation traveled to Beijing to receive Kim Jong Il’s wax statue. Zhang Murray, the president of the Great Man Wax Museum of China, delivered a speech at the ceremony.

Source: People’s Daily, July 10, 2013

http://world.people.com.cn/n/2013/0710/c1002-22144115.html

Briefings | | July 11, 2013 | Geo-Strategic Trend

Scholar: Challenges to China’s Economic and Social Transformation

On July 8, 2013, Chi Fulin, President of the China Institute for Reform and Development in Hainan Province wrote a commentary for China Business News entitled, “The Challenges and Trends in China’s Economic and Social Transformation.”

Chi stated that it was his understanding that the new Chinese government has established the goal of doubling China’s per capita GDP and per capita income by 2020. “Currently, both the international environment and the China’s domestic economic and social transformation are right in the middle of complicated, profound changes. Three key elements will determine whether or not China can achieve this goal. The first is whether China can objectively handle the challenges it faces; second is whether China can seize the opportunities available to it; and third, the key is whether China is able to speed up transformation and reform.”

Chi identified three challenges to social transformation: (1) the gap between rich and poor is quite conspicuous; (2) the social structure is irrational. So far, according to the National Bureau of Statistics, China’s middle-income groups account for about 23 percent [of the population]; and (3) as a result, social conflicts and social risks continue to increase.”

Source: China Business News reprinted by Finance (Jingrongjie), July 8, 2013
http://opinion.jrj.com.cn/2013/07/08072415493871.shtml

Briefings | | July 11, 2013 | Economy/Resources

China Review News: How to Avoid Indigestion of the State Council’s Financial Guidance

On July 9, 2013, China Review News published an article discussing how to ensure the actual application of “The State Council’s Guide on the Financial Support for Economic Restructuring, Transformation, and Upgrading.” According to the article, in order to avoid “indigestion" when implementing "this good policy," relevant government agencies must develop concrete operational measures and approaches for implementating the “guide.” Meanwhile, they should establish strict reward and punishment measures to ensure the implementation of the “State’s 10 Policies” (the 10 items listed in the guide).

Source: China Review News, July 9, 2013
http://www.zhgpl.com/doc/1026/1/9/7/102619738.html?coluid=53&kindid=0&docid=102619738&mdate=0709063526

Briefings | | July 10, 2013 | Government/Politics

PRC State Council Encourages More Private Capital to Enter China’s Financial Sectors

On July 5, 2013, the website of the Central People’s Government of the People’s Republic of China released a document titled, “The State Council’s Guide on Financial Support for Economic Restructuring, Transformation, and Upgrading.” The document lists ten items designed to help guide the “effective prevention and dissolution of financial risks” in China. In the ninth item of the guide, the State Council gives a green light to the establishment of private banks funded by private capital under the leadership of the China Banking Regulatory Commission. However, private banks or other private financial institutions must face their own risks.

Source:
The website of the Central People’s Government of the People’s Republic of China & Xinhua, July 5, 2013
http://www.gov.cn/zwgk/2013-07/05/content_2440894.htm
http://news.xinhuanet.com/fortune/2013-07/05/c_124964540.htm

Briefings | | July 10, 2013 | Government/Politics

Xinhua: Five Key Points of the China-Russia Military Exercises

Xinhua recently reported that the China-Russia joint naval military exercises had five important focal points: (1) The large scale included surface ships, submarines, helicopters, fixed-wing aircraft, and Marine Special Forces units; (2) Both sides sent flagship level warships; (3) The scope of the exercises was wide and practical. They therefore enjoyed deep mutual trust and covered joint anti-submarine, anti-aircraft, and anti-ship exercises, as well as joint civilian escort missions; (4) The operational integration level, from planning to commanding, was high; (5) They emphasized real-life combat exercises and cooperation with the air force. The China-Russia “Joint Maritime 2013 Exercises” started on July 5 in the Japanese Sea. A total of 19 warships and 8 aircraft participated in the exercises. This was the first time a Chinese Naval fleet participated in international exercises with no direct logistic support from China.

Source: Xinhua, July 5, 2013

http://news.xinhuanet.com/mil/2013-07/05/c_116424731.htm

Briefings | | July 9, 2013 | Geo-Strategic Trend

People’s Daily: U.S. Missile Intercept Test Failed Again

On July 7, People’s Daily reported in its Top News section that a U.S. land based missile intercept test suffered yet another total failure in the pacific region. The report was based on the July 5th announcement made by the U.S. Department of Defense that a missile launched from the California Vandenberg Air Force Base failed to intercept a long-range missile from the Ronald Reagan Air Force Base in the Pacific. The announcement did not mention the reason of the failure. This was the third consecutive failure of the same intercept system. According to People’s Daily, the U.S. Military has conducted a total of sixteen missile intercept tests in the past. It has only eight successes on its record. The last successful intercept test occurred in the year 2008.

Source: People’s Daily, July 7, 2013

http://military.people.com.cn/n/2013/0707/c1011-22104719.html

Briefings | | July 9, 2013 | Defense/Military

HSBC Chinese June PMI Number Released

China News recently reported that, on July 1, HSBC released the June PMI (Purchasing Managers Index) number for the Chinese manufacturing industry. The June number was 48.2, which is lower than the previous month’s 49.2. This latest PMI number marked a nine month low and indicates that the Chinese manufacturing sector is still on a decline. The new low is directly related to the widespread decrease in customer demand. Both new orders and new exports are shrinking in volume, representing the largest slide since last September. The level of the labor workload in manufacturing companies is declining as well. This is the heaviest decrease since last August. The manufacturing sector inventory level has also dropped for the fifth month. Meanwhile investments and prices are all falling. Qu Hongbin, HSBC Chief Economist for the China Region, commented that the HSBC PMI number demonstrated that the Chinese manufacturing sector is showing signs of shouldering heavy pressure on the demand side while small and medium sized companies are seeing a deterioration of financing conditions. PMI is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.

Source: China News, July 2, 2013

http://finance.chinanews.com/cj/2013/07-02/4993914.shtml

Briefings | | July 9, 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.