According to Statistics published by Guangzhou Daily, in 2012, 1,720 A-share listed public companies spent a total of 13.3 billion yuan (about US$2.2 billion) on “business reception” expenses [used for hospitality and to wine and dine customers]. The vast majority of these companies are state-owned enterprises. The company that holds the number one place is China Railway Construction Corporation. Its hospitality expenses in 2012 amounted to 837 million yuan, or 2.29 million yuan per day.
The Conflict between Urban and Rural Regions Poses Huge Risks
Study Times published an article wiritten by Han Kang, Associate Dean of China’s National School of Administration, on the subject of the high risk involved in the urbanization process. Han stated in his article that one of the biggest risks in China’s urbanization is the conflict between the urban and rural regions.
During the seven years from 1996 to 2003, the land cultivated in China dropped from 1.95 billion mu to 1.85 billion mu, about a reduction of 5.124 percent. This was the sharpest drop since the open door reform. During the same period, the employment rate for the agricultural sector remained stable at 49 to 50 percent, with almost zero change.
According to Han, during the process of urbanization, many cities have been putting a lot of effort into developing high-end infrastructure, such as luxury high rises and high-end industrial sectors. The government’s encouragement has played a significant and effective role and has led to extreme high-end urban development without any necessary constraints. Han pointed out that a majority, not a minority, of governments are pursuing this end and are competing with each other in the pursuit of increased high-end urban development."
Source: Study Times reprinted by People’s Daily, May 21, 2013.
http://theory.people.com.cn/n/2013/0521/c49154-21554168-2.html
RFA: China’s Debt-to-GDP Ratio Is More Than 100%
On May 14, 2013, Radio Free Asia published an article on China’s Debt-to-GDP Ratio titled, “China’s Total Debt Is 107 Trillion; the Ratio of Debt-to-GDP Exceeds 100 Percent.” According to the agency CLSA Asia-Pacific Markets, China’s debt–to-GDP ratio will reach 245 percent by 2015. In 2012, China doubled its new debt ratio as compared to 2011. The debt-to-GDP ratio reached 110 percent in 2012 with new debt growth of 58 percent, 2.9 times more than the GDP growth.
According to Zhang Yaochang, General Manager of the CLSA Hong Kong Policy Research Department, “In fact, it requires a large amount of debt to support GDP growth. China is now addicted to borrowing. If debt levels keep growing at this rate, it will not be sustainable.”
Source: Radio Free Asia, May 14, 2013
http://www.rfa.org/mandarin/yataibaodao/jingmao/nu-05142013145422.html?searchterm=%E4%B8%AD%E5%9B%BD%E5%80%BA%E5%8A%A1%E6%80%BB%E8%A7%84%E6%A8%A1107%E4%B8%87%E4%BA%BF+%E4%B8%8EGDP%E6%AF%94%E5%B7%B2%E8%BE%BE100%25%E4%BB%A5%E4%B8%8A
Mingpao: The CCP Central Committee Points out Problems with Ideology in Seven Different Areas
According to Mainland media reports, the General Office of the Chinese Communist Party Central Committee recently issued a circular called “About the Current Ideological Situation.” The circular pointed out seven areas in which problems exist in the field of ideology. It requested that local governments have meetings about applying the contents of the circular in practice. Reports seem to confirm the truth of existing “rumors” that “Talk about Seven Topics Is Forbidden” in universities and colleges. Teachers cannot discuss the following seven topics with students: universal values, freedom of the press, civil society, citizen’s rights, the Chinese Communist Party’s historical errors, the Bourgeois elite, and judicial independence.
Source: Mingpao, May 14, 2013
http://premium.mingpao.com/cfm/mem_Login1.cfm?SuccessUrl=%2Fcfm%2FContent_News.cfm%3FChannel%3Dca%26Path%3D100853875143%2Fcab1.cfm
http://news.sina.com.hk/news/20130514/-9-2968267/1.html
China’s New Ambassador to the United States Comments on China-U.S. Relations
Recently, Cui Tiankai, China’s new ambassador to the United States, gave an exclusive interview to Foreign Affairs magazine on the subject of China-U.S. relations. The U.S. Foreign Affairs magazine published the article on May 15, 2013. Then on May 20, 2003, China.com published an article about the interview. The title was “Cui Tiankai Ambassador: China Welcomes a Third Party to Mediate the Sino-Japanese Territorial Dispute.”
Cui Tiankai suggested that the United States not shift its military presence to the Asia Pacific area, warning the United States not to intervene in the Diaoyu Islands issue. According to Cui, China would welcome a third party to resolve the dispute between China and Japan under certain conditions. He stated that China has no intention of changing the existing international order but supports necessary reform of the international system. As for cyber security, Cui suggested that both the U.S. and China sit down and engage in constructive dialogues so as to avoid a recurrence of similar cyber attacks.
Source: China.com, May 20, 2013
http://news.china.com/zh_cn/dydzd/gdxw/11127676/20130520/17842566.html
http://www.nytimes.com/2013/04/17/world/asia/china-suggests-us-is-stirring-tensions-in-asia.html?_r=0
http://www.foreignaffairs.com/discussions/interviews/beijings-brand-ambassador