Chinascope – Page 863

Housing Sales 6.4 Trillion Yuan in 2012; Chinese Government and State Banks Received 5 Trillion

A rough estimate, based on official statistics, shows that, in 2012, the Chinese government and the state banks’ revenue from real estate amounted to 4.8 trillion yuan (US$0.8 trillion). This was about 75 percent of the total real estate sales for the year of 6.4 trillion yuan (US$1.0 trillion).

In 2012, China’s commercial housing sales were 6.4456 trillion yuan, an increase of 10 percent over the previous year. Zhou Jiangong, editor-in-chief of the Chinese version of Forbes magazine, posted an online message that included comprehensive statistics from the National Bureau of Statistics and the Ministry of Finance. It said: "In 2012 real estate sales were 6.4 trillion yuan (US$1.0 trillion), with paid deed taxes of 287.4 billion yuan (US$46.3 billion), property taxes 137.2 billion yuan (US$22.1 billion), business taxes 405.1 billion yuan (US$65.3 billion), and land appreciation taxes 271.9 billion yuan (US$43.8 billion) for a total of about 1.1 trillion yuan (US$0.18 trillion) in tax. The bank mortgage balance of 12 trillion yuan (US$1.9 trillion) generated interest payments of 840 billion yuan (US$135.4 billion), plus land sales revenue amounted to 2.8517 trillion yuan (US$0.46 trillion). The government and the banks revenue from real estate totaled 4.7917 trillion yuan (US$0.77 trillion), accounting for 75 percent of the total revenue of 6.4 trillion yuan (US$1.0 trillion)."

11 types of taxes are involved in real estate development and maintenance: the business tax, value added tax, land appreciation tax, property tax, urban land use tax, deed tax, farmland tax, corporate income tax, personal income tax, stamp duty, the urban maintenance and construction tax, and the education surcharge.

Source: Guangming Daily, April 4, 2013
http://economy.gmw.cn/2013-04/04/content_7209230.htm

Briefings | | April 4, 2013 | Economy/Resources

U.S. Returning to Asia-Pacific Allows China to Have More Reasons to Strengthen Its Military

Xinhua republished a Huanqiu (Global Times) article that a PLA scholar wrote, claiming that adequate military confrontation can be a good thing for China.

The article stated that merely mentioning the U.S.’s C-type encirclement of China used to cause people to feel much pressure. Since Chairman Xi’s successful visit to Russia, they have felt relieved.

The article said, “Strategic confrontation is nothing to be afraid of. The national strength of the Soviet Union was developed through its confrontation with the United States. If the two countries had not fought with each other in their thinking (ideology) and if it were not for the self-destruction [the Soviet Union’s collapse] in the area of politics, the United States would not be able to do anything economically or militarily [to the Soviet Union]. In China today, as long as the military competition is mutually beneficial and interdependent with the economy, we are not afraid even if the United States enters Asia. The premise is that we must accelerate the development of our military, economic, and technological strength simultaneously. In a certain sense, the United States entering Asia has increased our demand for arms. It has also been favorable to China. It gives us more reasons to strengthen China’s military power and take the path of empowering the nation independently.”

Source: Xinhua, April 2, 2013

http://news.xinhuanet.com/world/2013-04/02/c_124534132.htm

Briefings | | April 4, 2013 | US-China Relations

China’s Government Intervention in the Market Results in Long-term Economic Risk

On March 18, 2013, China Review News published an article criticizing the government for intervening in the market. “Because of the government’s interference in the market, inefficient central government enterprises can obtain low cost funds; because of the government’s interference in the market, enterprises that operate at a loss can gain profit in writing by availing themselves of government subsidies; because of the government’s interference in the market, inefficient companies have consumed China’s energy, thus accelerating the risk of a future crisis.”

The government’s distortion of prices has caused excess capacity, which present both a current and future long term risk to China’s economy. It means the failure of market allocations, resulting in even more government control.

Source: China Review News, March 18, 2013
http://www.zhgpl.com/doc/1024/7/2/7/102472794.html?coluid=53&kindid=0&docid=102472794&mdate=0318054412

Briefings | | April 3, 2013 | Economy/Resources

Another Red Terror? Beijing Propaganda Council of Ministers Launches New Three Anti-Movement

According to a China Gate article reprinted from Apple Daily, “The Red Terror is appearing again in Mainland Chinese Newspapers and Websites." Reports have been widely disseminated that the National Propaganda Council of Ministers (also translated as National Publicity Council of Ministers) has issued an order to get rid of ‘three new types of anti-personnel’ (Anti- Communist Party, Anti-Government, and Anti-Nation).”

On January 4, 2013, the National Propaganda Council of Ministers met in Beijing. Liu Yunshan, a member of the Standing Committee of the Political Bureau of the CCP Central Committee and the President of the Party School of the CCP Central Committee, attended the meeting and delivered a speech. Liu Yunshan served as Minister of the Central Government Propaganda Department for several years. He has now taken command of suppressing public opinion.

Source: China Gate, April 2, 2013
http://www.wenxuecity.com/news/2013/04/02/2318501.html

Briefings | | April 3, 2013 | Government/Politics

Why Is China the Biggest Financial Contributor to the BRICS Development Bank?

On March 26, 2013, the fifth BRICS summit opened in Durban, South Africa. The BRICS leaders agenda included discussion of the establishment of a BRICS development bank, intended to finance infrastructure. China will contribute US$41 billion to the BRICS Bank. India, Brazil, and Russia will each contribute US$18 billion, while South Africa will contribute US$5 billion.

Due to the fact that China is the biggest financial contributor, China will thus become the largest beneficiary. China can expand the domain of its own power by taking advantage of providing loans to developing countries. China should have the corresponding rights to express its voice as well. The bank headquarter should also be located in Beijing or Shanghai.

Source: China Review News, March 31, 2013
http://www.zhgpl.com/doc/1024/8/7/4/102487470.html?coluid=53&kindid=0&docid=102487470&mdate=0331064608

Briefings | | April 3, 2013 | Geo-Strategic Trend

Xinhua: Japan’s Prime Minister Visited Mongolia

Xinhua recently reported that Japan’s Prime Minister Shinzo Abe visited Mongolia as a step in the “Encirclement of China” strategy. Abe is the first Japanese Prime Minister to have visited Mongolia in seven years. Abe was expected to express a willingness to support the speeding-up of the Mongolian economy. Japan is also planning to speed up the negotiations on a free-trade agreement with Mongolia. Mongolia is a key exporter of coal. It currently exports 90 percent of its coal production to China. Mongolia is eager to expand its international coal market by building a railway that bypasses China. The country has high hopes that Japan can make a significant investment in this 1000-kilometer railway. Japan is also expected to cooperate with Mongolia in other areas like military and health. Abe visited Vietnam, Thailand, and Indonesia this January. The Indian Prime Minister is expected to visit Japan this May. The Japanese Foreign Minister also visited Australia in January.

Source: Xinhua, March 31, 2013

http://news.xinhuanet.com/world/2013-03/31/c_124523831.htm

Briefings | | April 2, 2013 | Geo-Strategic Trend

Chinese Media Pounding Heavily on Apple

Hua Shang News recently reported that, in the past couple of weeks, major Chinese media channels have been pounding heavily on Apple’s public image. The report accumulated repeated coverage by People’s Daily and Chinese Central Television (CCTV) on the quality of Apple’s customer service. Xinhua also reported on this topic. Key claims of these media reports are that Apple discriminates against Chinese consumers, has an arrogant attitude, evades taxes, refuses media investigations, and is breaking Chinese warranty laws. The massive media coverage triggered widespread discussions in the Chinese online community which included many different opinions. On March 27, Apple reportedly adjusted its Chinese warranty policies on its official website. Unconfirmed rumors suggested that this was one response to the recently imposed restrictions on U.S. government procurement policies against Chinese communications equipment vendor Huawei.

Sources:

Hua Shang News, March 30, 2013

http://hsb.hsw.cn/2013-03/30/content_8491052.htm

Global Times, March 30, 2013

http://world.huanqiu.com/exclusive/2013-03/3781547.html

Briefings | | April 2, 2013 | Information/Technology

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.