Chinascope – Page 852

Study Times Commentary Worries about Succession by Princelings

Study Times published a commentary that criticized the princelings (the offspring of former high-ranking Party officials) who succeeded their parents when they took over key government and Party positions. The article considered this to be a major form of corruption.The Chinese people have given it the most criticism because it serves to “severely destroy the legitimacy of our Party’s rule."

“Legitimacy stems from a set of widely accepted principles, which could be democracy or non-democracy, but at least it must mean what it stands for. If you emphasize that people are the masters of the power, you must truly let the people feel they can choose who is in power, makes decisions, and expresses their opinion on major issues.”

“We used guns to taker power. This is the origin of the legitimacy of our ruling power. While the people in China may think it makes sense for whoever used guns to take power to rule the country, we must not forget that … we obtained legitimacy by upholding the banner of democracy."

Source: Study Times, June 10, 2013
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2013/06/10/03/03_34.htm

Briefings | | June 13, 2013 | Government/Politics

Chinese Real Estate Industry May Have Become the Biggest Money-Laundering Channel

On June 8, 2013, the Hong Kong-based Mirror Books published an article titled, “Chinese Real Estate Industry May Have Become the Biggest Money-Laundering Channel.” “Not only is there money laundering; it is a double shameless plunder. The first plunder is corruption. It is a second plunder when officials invest the money collected through their corrupt acts and channel it into real estate, thus causing housing prices to rise.”

According to the Central Commission for Discipline Inspection of the Communist Party of China, since November 2012, there has been a new trend of selling luxury homes and villas. Many government officials, especially those in Guangzhou and Shanghai, have undersold their luxury homes. In Guangzhou and Shanghai, officials put up 4,880 and 4,755 luxury homes for sale, respectively. Of those public officials who left China from the Mid-Autumn Festival to October 1, 2012, more than 1,100 of them did not return to China on time and 714 of those 1,100 officials have been categorized as having fled China. In 2010, the outflow of illegal money from China was US$412 billion. In 2012, it was US$600 billion. It has been estimated that, in 2012, US$1 trillion was transported overseas. In 2013, the illegal funds that have fled China has reached US$1.5 trillion.

Source: Mirror Books (http://city.mirrorbooks.com) , June 8, 2013
http://city.mirrorbooks.com/news/?action-viewnews-itemid-88522

Briefings | | June 12, 2013 | Economy/Resources

Study Times: Standardize the Management of Internet Users and Guide Public Opinion

On June 10, 2013, Study Times, the publication of the Party School of the Central Committee of the CCP, published an article on Internet control. The article proposed to “standardize the management of Internet pubic opinion,” “cultivate mature Internet users,” and “develop platforms for dialogue between government officials and ordinary people.”

How to Handle Internet Management: 1) Filter out “negative” information. 2) Post the government authority’s information as much as possible and strengthen the journalists’ sense of self-discipline. 3) Train forum moderators, hosts, commentators, and public opinion managers to guide Internet discussions and to spread the government’s authoritative information at the appropriate times. 4) When accidents or tragedies occur, immediately express sympathy for the victims and report the details of the plans to help and the progress of those plans. Avoid using over-stimulating photos and words and get approval from the relevant officials before publishing anything. Train Internet Users: 1) Enhance Internet users’ ability to regulate themselves. 2) Strictly control the messages, enhance the self-regulation of the Internet media industry, and “purify the Internet communication channel." 3) Let Internet users realize that they should not focus on “swearing” at the government or at enterprises. Develop a Dialogue Between Government Officials and Ordinary People: 1) Reach a consensus by dispelling public anger. 2) Control the right to speak and guide public opinion. 3) Government officials should chat with the Internet users and improve their effectiveness in guiding public opinion. 4) Include Internet work in the system for evaluating government officials.

Source: Study Times, June 10, 2013
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2013/06/10/04/04_35.htm

Briefings | | June 12, 2013 | Information/Technology

Chinese Scholar in the U.K. Praises Xi Jinping’s 12-Word Strategy to Nail Down the U.S.

On June 10, 2013, China Gate and several other overseas Chinese websites in the U.S., Canada, and Australia published Shujie Yao’s article titled, “Xi Jinping’s Diplomatic Strategy to Deal with the U.S.: Using 12 Chinese Language Characters (3 four-character phrases) to ‘Nail down’ the United States.”

Shujie Yao, a Professor of Economics at the University of Nottingham in the UK, gave high praise to Xi Jingping for being smart in the way he obtained the 2-hour “intimate” meeting with U.S. President Obama on June 7, 2013. The 12 Words for the Diplomatic Strategy are: 1) Use the diplomacy of showing off his wife’s beauty; establish China’s first lady’s image. 2) Allow someone to be free so as to be successful in apprehending him later: ignore the U.S. in Xi’s first overseas trips for the purpose of winning U.S. attention. 3) Rescue the kingdom of Zhao by besieging the capital of the kingdom of Wei: To solve the problems in Asian Pacific areas, China must gain wide support from Africa, South Asia, Latin America, Russia, and other countries first. Then, China will have enough energy to negotiate effectively with the U.S. and with Eastern Asian countries.

[Editor’s note: The reference to Zhao is about a well-known Chinese stratagem to let the enemy fully commit himself against his prey, and then, instead of rushing to the rescue, attack the enemy’s dearest possessions.]

Source: China Gate, June 10, 2013
http://www.wenxuecity.com/news/2013/06/10/2446069.html
http://www.neixun.cn/sanshiliuji/sanshiliuji_yingwen_02.htm

Briefings | | June 12, 2013 | US-China Relations

China Prevents MasterCard from Handling RMB Transactions

Xinhua recently reported on a dispute between MasterCard and the Chinese authorities on the right to handle RMB transactions. The report is based on British media reports of a document that the Chinese central bank issued asking online payment platform EPayLinks to stop cooperating with MasterCard in conducting RMB business. About a year ago, the World Trade Organization (WTO) ruled that the Chinese government’s protection of the monopoly power of UnionPay, China’s bankcard association, in RMB credit card transactions broke the WTO agreement. Since that ruling, the Chinese central bank has not made any changes. It seems the Chinese authorities will continue to maintain a tough position on this matter. China is one of the fastest growing credit card markets in the world. China issued 46 million credit cards in 2012. According to MasterCard’s estimate, China will surpass the United States in 2020 to be the largest credit card market in the world. The Chinese RMB-based credit card monopoly, UnionPay, doubled its business volume over the past four years. EPayLinks argued in this new case that its business with MasterCard did not break any Chinese law since all operations are handled by the Hong Kong branch.

Source: Xinhua, June 3, 2013

http://finance.cankaoxiaoxi.com/2013/0603/219334.shtml

Briefings | | June 11, 2013 | Economy/Resources

Beijing News: China Started Trade Investigation of EU Wines

Beijing News recently reported that the Chinese Ministry of Commerce held a press conference on June 5, at which it announced the beginning of an anti-dumping and countervailing investigation of wines imported from the European Union (EU). The EU made a decision on June 4 to charge anti-dumping duties for photovoltaic solar products imported from China. The EU decision had a major impact on a trade volume of over US$20 billion. Several EU member countries voted against the EU decision but could not change the final outcome. The China-EU wine trade volume is relatively low (around US$1.04 billion). However this sector has enjoyed a rapid growth in the past several years. The wine industry in the EU has a long supply chain across the entire Union. Its export profit margin is much higher than that of the photovoltaic solar products. The Chinese investigation is especially damaging to wines from France, Spain, Italy, and Germany. There is still room for negotiation. The Chinese Fair Import/Export Trade Bureau insisted that the Chinese investigation has nothing to do with the EU decision on photovoltaic products. It is based solely on the requests that the the Chinese wine industry filed.

Source: Beijing News, June 6, 2013

http://epaper.bjnews.com.cn/html/2013-06/06/content_437684.htm?div=-1

Briefings | | June 11, 2013 | Economy/Resources

Global Times: Chinese Delegation Assesses Su-35 Fighter Jet

On June 6, Global Times reported that a Chinese delegation recently visited Moscow for a discussion with Russian arms export officials on negotiating the purchase of the latest Su-35 (Russian: Су-35, NATO: Flanker-E) fighter jet. The Russians agreed to present a demonstration to the Chinese delegation on June 5. The primary mission of the visit was to determine and assess the technical capabilities of the new multifunctional fighter jet. Business discussions were also planned. The two sides refused to reveal the number of jets included in the deal, but one Russian official hinted that it would be a “very sizable” number. Rumors are that the deal included at least 24 fighter jets. Russian government officials also confirmed that this will be a supply contract, not a manufacturing license. According to Russian media reports, the Chinese delegation gave high praise to the new jet model. “The political decision has already been made.” The deal is at the stage of negotiating payment schedules.

Source: Global Times, June 6, 2013

http://mil.huanqiu.com/paper/2013-06/4005371.html

Briefings | | June 11, 2013 | Defense/Military

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.