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China’s Reaction to Trump’s Election Win

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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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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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China: U.S. Remarks about Snowden Leaving Hong Kong Are Unacceptable to China

At a briefing given by China’s Foreign Ministry on June 25, 2013, government spokesperson Hua Chunying said that the accusation that the United States made about China allowing Edward Snowden to depart from Hong Kong is groundless and not acceptable to China.
 
“The Hong Kong Special Administration Region (SAR) Government has handled this case entirely in accordance with applicable law, which is beyond reproach, and should be respected by all parties. For the United States to question whether the Hong Kong SAR Government is acting in accordance with the law does not make sense. The U.S. accusation about China’s central government is groundless and is unacceptable to China."

Hua stated, “Even today, the U.S. still makes these remarks, which really puzzles people. I’d like to advise these people to look at themselves in a mirror, reflect, and take care of their own situation first.” When asked about reports that the U.S. is investigating whether Snowden is a spy for China, Hua said, "[T]his is nonsense and extremely irresponsible."

Source: Xinhua, June 25, 2013
http://news.xinhuanet.com/politics/2013-06/25/c_116286549.htm

Briefings | | |   US-China Relations

Chinese Scholar: China Needs to Reform Its Entire Financial System Completely

On June 24, 2013, Securities Daily published an article titled “(China) Needs to Reform Its Entire Financial System Completely.” According to the article, in recent years, China’s capital assets reserve has been increasing too fast. China has become the country with the largest currency reserve in the world. As of late last year, China’s broad money (M2) balance was 97.42 trillion Chinese yuan, 1.5 times that of the United States’ M2 and close to a quarter of total global money supply. By the end of May 2013, China’s broad measure of money supply (M2) reached 104.21 trillion yuan. However, the effect of increasing loans to stimulate the economy is getting worse as domestic enterprises are facing high costs and a sluggish external demand from overseas.

China has separated its financial system from the real economy for years. A bubble has been growing in the virtual economy as China’s commercial banks have been loaning money to large enterprises that have the government’s backing. On the other hand, the private SMEs (small and medium enterprises) that do not no have such backing and collateral have to rely on the private lending market, a “shadow” lending market that charges high interest rates. Burdened with such high interest loans, the SMEs have a low return on investment and are thus declining.

Source: Securities Daily, June 24, 2013
http://zqrb.ccstock.cn/html/2013-06/24/content_362891.htm

Briefings | | |   Economy/Resources

Tightened Measures against Fraud on the College Entrance Exam Sparked Riot in China

Students and parents besieged proctors at a high school in Zhongxiang City, Hubei Province on June 8, 2013, because of tightened anti-cheating measures on the College Entrance Exam. The parents were protesting unjust treatment on the national college entrance exam, “Why is it that official’s children are allowed to cheat, but our children cannot cheat?” The proctors confiscated cell phones, set up wireless jammers that blocked cell phone and other signals, and frisked the students. Some male teachers were said to have "groped the girls’ chests.” The strict regulations angered many students and parents, who stormed the school after the exam ended. Several hundred students and their parents surrounded the school in protest, beating teachers, smashing the principal’s car, and ripping the school’s doors off their hinges. After the exam, a student’s parent beat the proctor who had confiscated that student’s cell phone.

Fraud on the College Entrance Examination is rampant in Zhongxiang and many places in China. Many of the local school officials, teachers, parents, and students are all involved in the fraud. Therefore, proctors from other cities were sent to Zhongxiang this year to tighten measures against cheating.

Source: China Gate, The Epoch Times, Education News, June 10 and June 19, 2013
http://www.wenxuecity.com/news/2013/06/19/2465348.html 
http://www.theepochtimes.com/n3/100661-college-entrance-exam-becomes-battleground-in-china/
http://www.educationnews.org/international-uk/anti-cheating-measures-on-college-entrance-exam-spark-riot-in-china/

Briefings | | |   Grapevine

Xi Jinping Requires the PLA to Oppose Formalism, Bureaucracy, Hedonism, and Extravagance

On June 21, 2013, China Review News published a report on Xi Jingping’s recent instructions to the People’s Liberation Army (PLA) regarding the Party’s mass line education practice activities. Xi stressed the requirement that the PLA must oppose formalism, bureaucracy, hedonism, and extravagance in the army. The PLA must be absolutely reliable and obey Xi’s commands.

Source: China Review News, June 21 & 22, 2013
http://www.zhgpl.com/doc/1025/9/3/2/102593285.html?coluid=151&kindid=0&docid=102593285&mdate=0621225026
http://www.zhgpl.com/doc/1025/9/3/6/102593645.html?coluid=151&kindid=0&docid=102593645&mdate=0622090053

Briefings | | |   Government/Politics

Beijing News: State Council Considers Allowing Private Banks

Beijing News recently reported that the State Council announced a series of new policies at its latest executive meeting. One decision was the policy that the central government will no longer require approval for 32 counts of earlier restricted activities such as non-stop direct railway passenger and cargo transportation plans, or a change in the registration of publishing businesses. The goal is to promote fewer government regulations in market-based operations. One key focal point of the discussion at the meeting was the intent to allow the creation of private banks. The meeting recognized that the Chinese market has a significant lack of competition in the banking sector. Meanwhile, small businesses, private companies, as well as agricultural areas suffer a serious lack of lenders. The large state-owned banks are typically not interested in lending money to the businesses other than state-owned companies, which often enjoy fewer risks and a higher profit margin due to government endorsement. 
Source: Beijing News, June 20, 2013
http://epaper.bjnews.com.cn/html/2013-06/20/content_441918.htm?div=-1
Briefings | | |   Economy/Resources

Xi Jinping: The South China Sea Issue Should not Interfere with China-Vietnam Relations

On June 19, 2013, China News reported that Chinese President Xi Jinping recently met with Vietnamese President Zhang Jin in Beijing. Xi suggested that the two nations should prevent the issues of the South China Sea from interfering in the relationship between the two neighbors. Xi said China is determined to solve the issues in a political manner such as bilateral negotiations and friendly discussions. China called for stopping any activity that would further complicate the situation and for avoiding the internationalization of the issues. President Zhang agreed to the friendly negotiation approach and suggested that Vietnam is willing to participate actively in the joint delimitation effort as well as the peaceful joint development plan. Vietnam also does not want the issues to be a threat to the relationship between the two countries. The China News report described the meeting as “friendly and frank.”
Source: China News, June 19, 2013
http://www.chinanews.com/gn/2013/06-19/4947354.shtml
Briefings | | |   Geo-Strategic Trend

Global Times: Russia Signed Long-Term Oil Supply Deal with China

Global Times recently reported that, on June 21, Russia’s largest oil company, Rosneft Oil, signed a long-term oil supply contract with China National Petroleum Corporation (CNPC). Russian President Vladimir Putin and Chinese Deputy Premier Zhang Gaoli were both present at the ceremony. The contract is for Russia to supply 365 million tons of crude oil to China over the next 25 years. The total contract value is around US$270 billion. The contract was based on a framework agreement between the two governments which signed in March 2013. 
Source: Global Times, June 21, 2013
http://world.huanqiu.com/exclusive/2013-06/4051963.html
Briefings | | |   Geo-Strategic Trend

RFA: Tibet Completed Real-name Telephone, Cell Phone, and Internet Registration Process

RFA reported that Tibet has become the first region in China to have completed the real-name Telephone, Cell Phone and Internet registration process. RFA said it believed the measure was an effort the Chinese government used to intensify information control in Tibet, .

The statistics suggested that there are 2.7 million land line and mobile telephone users as well as 1.4 million Internet users registered in Tibet. However a Tibetan resident told RFA that, if they paid a high enough price, they could buy a mobile phone outside of Tibet and use it in Tibet.

Also the effect of the real name registration process is questionable. People told RFA that it is extremely difficult to control the flow of information in today’s advanced information era. “Even though China made a requirement last year that all microblog users register using their real names, online criticisms against the government did not diminish. According to RFA, this is a clear indication that the real name registration system has limited effectiveness in media control.”

Source: RFA, June 19, 2013
http://www.rfa.org/mandarin/yataibaodao/shaoshuminzu/xql-06192013151943.html

Briefings | | |   Social Stability