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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

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

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

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

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

CRN: China’s Strategy Seen in the BRICS Leadership Summit

China Review News (CRN) recently published a commentary analyzing China’s new strategy as an emerging world power. The author suggested that, although the “old-fashioned” world powers still enjoy a relatively strong economic base, they are apparently suffering a major slow-down in economic development. The commentary expressed the belief that these “old-powers” are deeply concerned about the emerging countries led by the BRICS group. The U.S. is demonstrating a divide-and-conquer strategy by luring emerging nations like India and South Korea to join the TTP. Although the trade relationship with Russia and India still has a lot of issues, China’s strategy seems to be to engage itself more deeply, nonetheless. The commentary called for taking full advantage of the BRICS framework to work on stronger cooperation among emerging markets for maximized economic and political power as a united body.
Source: China Review News, March 29, 2013
http://www.zhgpl.com/doc/1024/8/4/3/102484344.html?coluid=1&kindid=0&docid=102484344&mdate=0329000126

Premier Li Keqiang Toured Yangtze Delta Area

On March 30, Xinhua reported that Premier Li Keqiang toured the Yangtze Delta Area in Jiangsu Province and Shanghai from March 27 through 29. During his visit, Li praised the economic achievements made in Jiangsu and Shanghia. According to Xinhua, Li also gave instructions regarding the conditions for the economy to develop further. He pointed out the need "to promote modernization in agriculture; to expand domestic consumption during the urbanization phase; for businesses to increase their drive to compete and pressure (for growth) in the reform and opening up era; and to allow people to benefit from those dividends resulting from reform.”

Source: Xinhua, March 30, 2013
http://news.xinhuanet.com/politics/2013-03/30/c_115220301.htm

Liu Yunshan: Party to Launch a Campaign to Study, Do Research on, and Practice Party Ideology

On March 28, 2013, Liu Yunshan, Principal of the Central Party School, hosted a forum at the Central Party School in Beijing. Liu discussed strengthening the need for the Party members to study and carry out the key messages that President Xi Jinping delivered during the 80th anniversary of the Party School. Liu called for the entire Party to launch a campaign to “study, do research on, and practice (Party ideology). The forum recognized the improvements already made in Party members’ behavior while mentioning unhealthy tendencies, including a "lack of diligence and focus in study and a disconnect between studying theories and applying the theories." The participants in the forum included representatives of the students and teachers from Party schools at the provincial levels, advanced research classes, and youth league classes.

Source: Xinhua, March 29, 2013
http://news.xinhuanet.com/zgjx/2013-03/29/c_132269962.htm