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Scholar: Relaxing Control of the Real State Sector Will Collapse the Economy

Yi Xianrong, a Research Fellow at the Institute of Finance and Banking under China’s Academy of Social Sciences (CASS), stated that once the control of real estate is relaxed, the Chinese economy will be dead. Yi made the remarks in response to reports that the central government may relax its control of the real state sector. “China’s housing market has been very high even under the tight controls. If the controls are relaxed, there is no doubt that the economy will be dead. Once the bubble bursts, the Chinese economy will not be salvageable whatsoever.”

Source: Sina.com, May 24, 2013

http://news.sina.com.hk/news/20130524/-9-2976740/1.html

“Student Zhang, Please Return to China; Use the U.S. Style and Breathe Freely”

People’s Daily published a commentary supporting the Chinese student who criticized Joe Biden, Vice President of the United State, for the comments he made about China.

On Monday, May 13, 2013, Biden spoke at the commencement ceremony of the University of Pennsylvania. About China, Biden said, “You CANNOT think different in a nation where you cannot breathe free. You CANNOT think different in a nation where you aren’t able to challenge orthodoxy, because change only comes from challenging orthodoxy.” Zhang Tianpu, a Mainland Chinese student and graduating senior at the ceremony, felt insulted and wrote a letter to Biden demanding an apology. As of May 22, the letter had collected over 300 signatures.

State media published reports about Zhang. For example, a People’s Daily commentary stated that Biden’s self-righteousness is typical of American pride and prejudice. “The young Chinese are, in general, full of confidence in China’s situation and development. … China is walking its own path and that represents the confidence of young Chinese. This confidence is particularly valuable for the future of China and should be highly commended.”

Some Chinese newspapers and netizens thought differently. Nanfang Daily commented, “The Chinese student asked for an apology, ‘challenged orthodoxy,’ and ‘breathed freely,’ and moreover, he loved his motherland in an orthodox manner, but it reminds us of the classic joke about the former Soviet Union.” There was a popular joke in the former Soviet Union. A visiting U.S. Secretary of State told Brezhnev that people in the U.S. can criticize the U.S. President in front of the White House. Brezhnev replied, “So what? The people in the Soviet Union can also criticize the U.S. President in front of the Kremlin."

On weibo (Chinese version of twitter), some netizens urged Zhang to bring the U.S. style criticism back to China  and “breathe freely.” Others complained about Internet control in which the authorities delete their posted comments on these topics.

Sources:
Huanqiu, May 23, 2013
http://world.huanqiu.com/exclusive/2013-05/3961235.html
People’s Daily, May 24, 2013
http://www.people.com.cn/24hour/n/2013/0524/c25408-21594797.html
Nanfang Daily, May 23, 2013
http://tinyurl.com/o4dgr75
Weibo, May 24, 2013
http://weiba.weibo.com/10015/t/zy9s058OQhttp://weiba.weibo.com/10015/t/zy9s058OQ

Qiushi Article Criticizes Constitutional Governance as Belonging to Capitalism

Red Flag Manuscript, the bi-weekly publication of the Chinese Communist Party’s Central Committee’s Qiushi Journal, published an article that criticized Constitutional Governance, saying its ideals and key institutional elements “only belong to capitalism and the dictatorship of the bourgeoisie."

Yang Xiaoqing, a law professor at Renmin University of China, authored the article. He compared Constitutional Governance to the Chinese regime’s "Socialistic People’s Democracy." For example, the former is based upon private ownership and a market economy, while the latter is based on an economy of public ownership; the armed forces under Constitutional Governance are neutral and belong to the government, while the military in the "Socialistic People’s Democracy" is under the absolute leadership of the Communist Party. The author believes that "Constitutional Governance, as a comprehensive governance system, is not universally applicable" and that "its key institutional elements and ideals do not fit the socialist countries." The article also disapproved of Constitutional Governance as being deceptive. "The freedom and democracy on the surface cover up its essence, which is the freedom and democracy of the bourgeoisie and the dictatorship of the bourgeoisie." "Constitutional Governance boasts of a separation of powers with checks and balances, but, in reality, it is not a true separation of powers."

The article concluded that China’s "People’s Democracy" must not be called "socialist constitutional governance" because the people’s democracy and constitutional governance are two fundamentally different political systems. In the end, constitutional governance does not fit China’s national conditions.

Many Chinese Internet users criticized the article. One user responded, "It seems the people at high levels have never thought about really implementing the rule of law, democracy, constitutional governance, and human rights." Another said, "The root of China’s problems is the absence of constitutional government. Now someone blatantly claims, on one side, that a constitutional government does not fit China, but, on the other, it cannot really solve the increasingly serious social crisis. Either go for constitutional government, or go for the guillotine." Another one said, "The core of constitutional governance is democracy, the rule of law, and human rights. It is in favor of limiting the government to protect the rights of citizens. If one actually puts a capitalistic label onto democracy and human rights, that amounts to covering up the reality with its own ideology."

Source: BBC Chinese, May 21, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/05/130521_china_capitalism.shtml

Five Central Construction Enterprises Spend over Six Million Yuan Per Day on Reception Meals

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. 

Five central enterprises, including China Railway Construction Company, China Communications Construction Company Ltd., Sinohydro Group Ltd., China Gezhouba Group Company Ltd., and China National Chemical Engineering Co. Ltd., spent a total of more than 2.2 billion yuan, averaging 6.12 million yuan (about US$1 million) per day on food, drinks, and gifts. 

Source: UDN.com May 13, 2013 http://udn.com/NEWS/MAINLAND/MAIN3/7892694.shtml

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