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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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Economist: Potential Risks Underlying Economic Stability Cannot be Ignored.

Zou Dongtao from China’s Central University of Finance and Economics published an opinion piece in which he discussed six potential risks underlying the stability of China’s economy and warned that these risks cannot be ignored.

Zuo stated that the foundation of economic stability is not solid and that conflicts in economic operations are accumulating. The potential risks are in the follow areas:

1. Marginal efficacy of investment is diminishing. With investment interests lacking and more investment needed to maintain the current economic growth, the investment-driven economic model is not sustainable.

2. Production capacity surplus is increasing. In the first quarter of this year, over a third of the businesses in textiles, paper, synthetic fiber, nonferrous metal, ferrous metal, and steel indicated that they have serious over-capacity.

3. Consumption of electricity in manufacturing and railroad cargo volume remain low, showing slow industrial growth.

4. The money supply demonstrates fast growth while businesses have “anemia.” Although M2 reached one trillion yuan, many enterprises are short on cash flow.

5. The revenue of the central government shows a negative growth and local government debts show increasing risks. Compared to same period last year, the central government’s revenue decreased by 5.2 percent.

6. Mid and small sized businesses continue to face serious issues. According to a recent survey of Chinese enterprises, on the most difficult issues businesses ranked the problems as follows: “labor costs rising” (78.3 percent), “excessive burden of social security and taxes” (56.2 percent), and "profit margin too low” (45.3 percent). 

Source: jrj.com.cn (Financial Sector), April 24, 2013
http://opinion.jrj.com.cn/2013/04/24073415253621.shtml

Briefings | | |   Economy/Resources

Luo Gan Praised Masanjia for Forced Brainwashing of Falun Gong

[Editor’s Note: On April 6, an article in Lens Magazine, known for its photography, detailed torture implements with names like the "Tiger Bench" and the "Death Bed" that were used against prisoners in the Masanjia Forced Labor Camp. It immediately triggered an online outcry from hundreds of thousands, furious at the authorities for what the article depicted. The piece was quickly deleted from web portals. The article mentioned that the tortures were initially implemented upon "special groups," while not specifying the name of the group. It’s widely believed that the group refers to Falun Gong, a meditation practice suppressed by the authorities since 1999. The following is an excerpt from one of the documents obtained by Chinascope, showing that the Party was advocating labor camps to transform Falun Gong practitioners.

On August 29, 2000 Luo Gan, former Director of the Politics and Law Committee of the Chinese Communist Party, and the head of the "610 Office," an organization formed on June 10, 1999, specifically to suppress Falun Gong, gave a speech at the Experience-Exchange and Commendation Conference on [Thought] Transformation Work held by the Ministry of Justice. Luo praised how the Masanjia Labor Camp helped in the forced transformation of Falun Gong practitioners. Below is an excerpt from his speech:]

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Reports | | |   Report

Chinese Economist: Entrepreneurs’ Emigration Overseas Is Unfortunate for the Economy

Xu Xiaonian, economist and professor at the Sino-Europe International Business Institute, commented about China’s economy. Xu said that nobody, including entrepreneurs, has a sense of security when “the state advances as the private sector retreats.”

During a public event on April 21, Xu said that the most valuable resource in a country’s economic development is its entrepreneurs. It is an imperative task for the Chinese government to consider how to keep these entrepreneurs in China. Xu said, “(The Authorities) cannot do things in the style of the Cultural Revolution – when the authorities could detain people and confiscate (private) property at will. To do so will destroy people’s sense of security. (Entrepreneurs) will not only emigrate overseas, they won’t even have any investment plan inside China.”

The Hurun Rich List 2012 showed that 44% of the rich people in China are considering emigrating overseas; 16% have already emigrated or in the process of emigration.

Source: BBC Chinese, April 22, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/04/130422_china_rich_immigration.shtml

Briefings | | |   Economy/Resources

State Media Survey: Over 80 Percent Oppose the Party

On April 15, 2013, the People’s Forum under the State media People’s Daily conducted an online survey on the Communist Party’s credibility. The survey, titled “Confidence, Belief and Faith” had four questions and was shut down within 24 hours after over 80 percent of those surveyed indicated that they disapproved of the Communist Party.

In response to Question 1, “Do you agree that the Chinese Communist Party has sufficient courage and wisdom to push forward reform?” 72.1 percent selected “No.”

To Question 2, “Do you agree with the statement that upholding and developing socialism with Chinese characteristics benefits the fundamental interests of the overwhelming majority of the people?” 82.1 percent answered “No.”

As for Question 3, “Do you completely agree that only the Communist Party of China can lead the people to successfully take the road of socialism with Chinese characteristics?” 83.53 percent said “No”

In answering the last question “What do you think positively about China’s system of one party rule with multiple parties participating?” 80.90 percent expressed “No.” About 10 percent answered “not clear about it” or “do not know.”

The survey and its results were taken down from Internet within 24 hours of its being posted, but not before approximately 3,000 people submitted answers to the survey.

Source: Epoch Times, April 24, 2013
http://www.epochtimes.com/gb/13/4/24/n3854521.htm

Briefings | | |   Social Stability

China’s Broad Money Supply (M2) Is Beyond Economic Growth

According to an article in China Review News on April 23, 2013, broad money supply (M2) in China has increased quickly. It reached 103.61 trillion yuan in March of 2013. China’s M2 stock and incremental has jumped to the first in the world. This does not match China’s status as a developing country. Currently, China‘s GDP accounts for only a quarter of the world‘s total. An excess money supply will only lead to inflation.

Source: China Review News, April 23, 2013

http://www.zhgpl.com/doc/1025/1/2/2/102512217.html?coluid=53&kindid=0&docid=102512217&mdate=0423080551


Briefings | | |   Economy/Resources

China Red Cross Withheld Aid from Distribution Because TV Reporters Were Not There Yet

On April 23, 2013, an article titled, “China Red Cross Withheld Rescue Aid from Distribution While Waiting for TV Reporters” was circulated on several Chinese websites. On April 20, 2013, a 7.0-magnitude earthquake hit Ya’an City in southwest China’s Sichuan Province. There were more than 2,000 aftershocks. According to the information released by the Chinese authorities on April 20, 2013, 192 had died, 23 were missing and 11,470 were injured.  Nearly 2.2 million people were affected.

According to the China Forbidden News Blog, one microblogger who used the name “Mr. Long – Crowded Crazy Nest” angrily complained that the Sichuan Red Cross Department Head named Wang asked his staff members not to distribute any aid to the victims because TV reporters had not arrived there yet. 

Source: China Forbidden News and China News, April 22, 2013
http://zhongguojinwen.blogspot.com/2013/04/blog-post_125.html
http://bbs.chinanews.com/web/65/2013/0422/64012.shtml

Briefings | | |   Government/Politics

Five Reasons Why Chinese People Lack Confidence in the Future

According to an article in China Review News on April 23, 2013, resentment in China is increasing, which reflects people’s lack of confidence in the future. Below are the five reasons listed in the article:

  1. The government is moving forward (getting richer) while the Chinese people are moving backward (getting poorer);
  2. Home prices are rising too fast;
  3. The income gap is huge;
  4. Corruption is rampant;
  5. Environmental Pollution, such as smog, is no longer bearable.

Source: China Review News, April 23, 2013
http://www.zhgpl.com/doc/1025/1/2/2/102512201.html?coluid=53&kindid=0&docid=102512201&mdate=0423075236

Briefings | | |   Government/Politics

Head of “610 Office” Praised Labor Camps for Forced Transformation of Falun Gong Practitioners

On April 6, an article in Lens Magazine, known for its photography, detailed torture implements with names like the "Tiger Bench" and the "Death Bed" that were used against prisoners in the Masanjia Forced Labor Camp. It immediately triggered an online outcry from hundreds of thousands, furious at the authorities for what the article depicted. The piece was quickly deleted from web portals. The article mentioned that the tortures were initially implemented upon "special groups," while not specifying the name of the group. It’s widely believed that the group refers to Falun Gong, a meditation practice suppressed by the authorities since 1999. The following is an excerpt from one of the documents obtained by Chinascope, showing that the Party was advocating labor camps to transform Falun Gong practitioners.

On August 23, 2000, Li Lanqing, former vice premier of the State Council and head of the "610 Office" (the department in charge of handling the suppression of Falun Gong), sent a personal letter to the “Experience Exchange and Commendation Meeting of The Ministry of Justice on Education and Transforming Work (i.e., Brainwashing),” complimenting the labor camps for their excellent work in transforming Falun Gong practitioners. 

In the letter, Li said, “In the past year, the labor camps have done a lot of work in the struggle against ‘Falun Gong.’ [These camps] have punished those violators in accordance with the law and, at the same time, have done a lot of work in transforming these people. …” 
Li also said in his letter, “Reeducation through labor departments [labor camps] have a unique advantage in the transformation of those diehard ‘Falun Gong’ members and have played an important role in the struggle against ‘Falun Gong.’” 

 Source: Chinascope

Briefings | | |   Government/Politics