Chinascope – Page 864

PLA Daily: U.S. Report on China’s Military Power Based on Chinese Netizens’ Speculation

People’s Liberation Army Daily published a commentary on the recent U.S. Department of Defense report on China’s military power. The commentary stated that the report relied for its information on what so called U.S. experts on China had copied and pasted from Chinese military websites. The information did nothing but reflect what Chinese netizens speculated and imagined.

“Each year the United States routinely publishes a report on China’s military power. This is totally a gross interference in China’s internal affairs. China has repeatedly stressed that the development of China’s military is defensive in nature. Let us ask, since China, in strengthening its national defense and building its military, is not targeting any country, why does the U.S. consider it its own business?"

The commentary stated that the U.S. motivation behind its speculations and accusations is self-evident. “On the one hand, it touts the "China military threat theory" to sow discord between China and other countries, especially, its neighboring countries, aiming to contain China. … On the other hand, the U.S. exaggerates China’s military threat to promote its domestic interest groups and arms dealers. Presumably U.S. arms manufacturers are already gearing up to count their money.”

Source: Xinhua, May 8, 2013
http://news.xinhuanet.com/2013-05/08/c_124681010.htm

Briefings | | May 10, 2013 | US-China Relations

CASS: Imbalance in Housing Market, Price Hikes to Continue

According to the National Bureau of Statistics, for the month of March 2013, 68 out of the 70 cities across the country saw housing prices rise higher than the previous month. A report, released by the Chinese Academy of Social Sciences (CASS), pointed to the observation that overall prices of real estate rebounded after the State Council’s February measures to curb housing prices. The report warned of the fact that supply and demand in the housing market are out of balance and that prices face the danger of getting completely out of control.

The industry generally believes that, by adopting means under a planned economy to handle commercial residential real estates driven by market forces, the government has moved on the wrong direction in its current real estate market regulation policy.

In analyzing the causes of the current round of price increases, Bowen Xi, a manager at a real estate company, mentioned three main factors. The first is the fiscal pressure of local governments. At present, only Beijing city has implemented the 20 percent transaction tax; other cities are looking for ways to circumvent it. Second, on a long-term basis, what determines the housing price is supply and demand. There are still large numbers of people who do not have a house. Due to urbanization, for a long period of time, many people have been moving into cities. Third, China’s prices are also affected by the monetary policy of the Western countries. Quantitative easing of western currencies will result in an issuance of more RMB to the market, causing an increase in the price of assets.

Source: People’s Daily, May 7, 2013
http://house.people.com.cn/n/2013/0507/c164220-21385112.html

Briefings | | May 9, 2013 | Economy/Resources

Beijing Daily: U.S. Affinity for Japan’s Amendment of [Peace] Constitution Is Ill-Intentioned

China was irked by the comment that U.S. State Department spokesman Patrick Terrell made at a press conference on May 2, 2013, about Japan’s Peace Constitution. Patrick said, "Any question about Japan’s Constitution should be asked of Japan. It’s an internal matter the Japanese government should consider." Beijing Daily published an article accusing the U.S. of being ill-intentioned by siding with Japan in amending its peace constitution. The article listed three major reasons for the U.S. position.

The article said, “In the context of the expanding extreme right-wing political forces in Japan and their increasingly dangerous political activities in defending Japan’s history of aggression and its militarism, the United States, as a country witnessing the enactment of Japan’s peace constitution, hypocritically took Japan’s revision of its peace constitution to be the same as other countries’ amending their existing constitutions, calling it ‘an internal matter of the Japanese government.’ The U.S’s ill intention in siding with and conniving with the Japanese ultra-right political forces on the military expansion of its strong army is all too clear. It makes one wonder about the deeper reasons behind the act.”

“First, it is a reflection of the U.S.’s global power politics and hegemonism. The United States has the world’s most powerful military machine, guarding all of the important military bases and transport corridors around the world. Facing major changes in the international situation, the United States is trying to implement a rebalancing strategy in Asia and an increase in its military presence in countries such as Japan, Korea, the Philippines, Australia, and Singapore, in order to strengthen its control of Asia using super military power. In the context of U.S.’s military strategy, which is in contradiction to the trend toward world peace and development, Japan’s strengthening of its military power is exactly what the United States has been expecting for many years."

“Second, due to the huge U.S. budget deficit and its military spending constraints, there is an urgent need to foster the Japanese military more actively by strengthening the U.S.-Japan military alliance and forcing Japan to spend money and send troops without restriction for the implementation of its global military strategy."

“Third, the U.S. is implementing the dual policy of cooperation with and containment of China. It is building a strategic encirclement to deter China while strengthening exchanges and cooperation with China. Japan’s Abe government coincides well with the United States’ attempts in this regard.”

Source: Beijing Daily, May 7, 2013

http://news.xinhuanet.com/world/2013-05/07/c_124671432.htm

http://bjrb.bjd.com.cn/html/2013-05/07/content_70528.htm

Briefings | | May 9, 2013 | US-China Relations

People’s Daily: Four Challenges to Upgrading Industrial Structure

The China Center for International Economic Exchanges, headed by former Chinese Vice Premier Zeng Peiyan, issued a report on the transformation of China’s industrial structure. The report concluded that China faces four challenges to upgrading its industrial structure: the lack of key technology, the pressure from international competition, the pressure on employment, and structural and institutional obstacles.

As China has grown to be the world’s manufacturing powerhouse, it has had to rely on imports for many of its key technologies, large complete groupings of equipment, core components, and important basic elements.

Internationally, the United States, Japan, France, and other countries have proposed and implemented a "remanufacturing” strategy. Developing countries such as China, India, Brazil, and South Africa have, one by one, entered into accelerated industrialization, causing sharp price hikes in energy and other resources. All of this has gradually diminished China’s competitiveness.

How to upgrade the industrial structure without losing jobs is a challenge. Expanding the service industry is necessary to resolve this problem.

Finally, China must deepen reform to provide structural and institutional assurance to the upgrading of its industrial structure.

Source: People’s Daily, May 6, 2013
http://scitech.people.com.cn/n/2013/0506/c1007-21372018.html

Briefings | | May 9, 2013 | Economy/Resources

Chinese Scholar on the China-Burma Relations amid the Political Reform in Burma

Iin a recent article, Du Jifeng, a scholar at the National Institute of International Strategy at the Chinese Academy of Social Sciences, discussed China-Burma relations amid Burma’s political reform. Du expressed the belief that, although Burma is re-balancing the three-way relationship between China, the U.S., and Burma, China’s strategic importance to Burma in geopolitics, energy supply, and border security has not changed substantially.

In the article Du said, “Since March 2011, Burma’s new government has completed the power transfer and has been working on political reform. At the same time, the government of Burma began to adjust its foreign policy. The bilateral relations between Burma and the U.S.-led Western countries has been warming up; high-level leaders have repeatedly visited each other. Western countries have canceled or loosened the 20 years of economic sanctions on Burma. Burma has also changed its once one-sided foreign policy toward China and rebalanced the triangular relationship with China and the United States.”

“While Burma gradually becomes closer to the US-led Western countries, the bilateral relations between China and Burma have gone up and down on some specific matters. … Burma’s worry about the rapid rise of China is an important consideration in Burma’s adjustment of its diplomatic focus. Actually, in the history of their relations, Burma has always remained guarded toward China. The growth of China’s economic strength only resulted in Myanmar having more worries.”

Regarding China-Burma relations under Burma’s new diplomatic policy, Du said, “The main purpose for Burma’s adjustment of its diplomatic focus is to implement a diverse diplomacy and avoid over-reliance on the Chinese economy. However, the strategic importance of China to Myanmar in geopolitics, border, and energy security has not changed substantively. At the same time, China has significant economic interests in Burma and therefore will not easily give Burma up.”

Source: Sohu, April 2, 2013

http://news.sohu.com/20130402/n371469340.shtml

Briefings | | May 8, 2013 | Geo-Strategic Trend

China’s Economy May Decline in the Fourth Quarter

Economic Information, a publication under Xinhua, published an article about the economic trends in 2013 by Li Zuojun, who is from the Resources and Environment Policy Institute at the State Council’s Development Research Center. Li predicted that, after the weak growth in the first three quarters, China would face a probable economic decline.

According to Li, some growth was the result of the following: the residual effect of the 2012 economic rebound, an increase of investors’ confidence as a result of the installation of new leadership, the new urbanization strategy, and the improvement of the international environment where the economic recovery of the United States, the stabilization of Europe, and the improvement of Japanese economy stimulated China’s exports.

The probable decline in the fourth quarter of 2012 will be caused by two factors. One, in May of last year, China adopted policies and measures aimed toward steady growth. Policies of this nature tend to bring growth for about one year. After October 2012, China’s economy rebounded. This will last no more than one year at the maximum. Two, there may be new macro adjustment policies implemented in the second or third quarters to contain the rebound of Gross Domestic Product, the Consumer Price Index, and the housing market. The economy will slide as a result.

Source: Economic Information, April 18, 2013
http://www.jjckb.cn/opinion/2013-04/18/content_440102.htm

Briefings | | May 8, 2013 | Information/Technology

BBC Chinese: EU Planning Punitive Tariffs against Chinese Photovoltaic Products

BBC Chinese recently reported that the European Union is preparing to impose punitive tariffs on photovoltaic products imported from China that are worth billions of dollars. It is widely expected that these trade protections will anger China. The EU is trying to protect key European vendors such as the German company SolarWorld. The Chinese government has already said that China will not remain quiet and have no reaction. The output of Chinese photovoltaic products quadrupled between 2009 and 2011. Products made in China currently occupy 80 percent of the EU market. The EU market is half the size of the global market, which is worth $77 billion. The EU Trade Commission is getting ready to implement the anti-dumping measures; it claims there is sufficient evidence to support this action.

Source: BBC Chinese, May 3, 2013

http://www.bbc.co.uk/zhongwen/simp/world_outlook/2013/05/130503_eu_china_solar.shtml

Briefings | | May 7, 2013 | Economy/Resources

China’s Reaction to Trump’s Election Win

Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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