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China’s Reaction to Trump’s Election Win

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

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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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China’s Income Distribution Research Center Published Results on Income Disparity

Xinhua reported that, on April 13, 2013, China’s Income Distribution Research Center published the results of its research on the distribution of income in China. The results suggested that the largest disparity in income was found to be between those who live in cities and the countryside, while the gap continues to grow between various regions and professions. According to the results, the professions in the service industry along with agriculture, forestation, herding, and fishing are among the lowest in income level, while electricity, telecommunications, and the financial insurance industries are in the top income bracket.

Source: Xinhua, April 14, 2013
http://news.xinhuanet.com/politics/2013-04/14/c_124577901.htm

Briefings | | |   Economy/Resources

Beijing to Implement Residential Permit System

Xinhua reported that Beijing will implement a Residential Permit System this year in order to systematically regulate the (booming) population. It was reported that the public security bureau is conducting research on all residents currently residing in Beijing and plans to use the data as the foundation for the Residential Permit System.

Source: Xinhua, April 13, 2013
http://news.xinhuanet.com/politics/2013-04/13/c_115372583_2.htm

Briefings | | |   Social Stability

Confucius Institute Opened at Columbia University

Xinhua reported that Hanban, the headquarters of the Confucius Institute, In collaboration with Columbia University, held an opening ceremony for the Confucius Institute. The ceremony was held at Columbia University on April 9, 2013. Xu Ling, the Director of Han Ban, Lee C. Bollinger, the university president, Chen Yulu, President of Renmin University of China, as well as Dong Xiaojun, consul-general of the Chinese Consulate General in New York, attended and spoke at the ceremony.

Source: People’s Daily, April 10, 2013
http://usa.people.com.cn/n/2013/0410/c241376-21077219.html

Briefings | | |   Geo-Strategic Trend

Making a Breakthrough in Reform

[Editor’s Note: China Business News published an article by Xia Bin, the Director of the Financial Research Institute of the Development Research Center of the State Council. Xia argued that urbanization (城镇化), or developing and expanding towns by absorbing peasants from villages, should not be seen as the solution to making a "breakthrough in reform," because it requires a huge investment that the government does not have. He suggested that a real breakthrough should be made by reducing the income gap between city residents and peasants and by giving the land back to the farmers (so that they can enjoy the appreciation in land value).

Xia also acknowledged that a reform that would reduce the income gap would cause a huge fiscal deficit for both the central and local governments. His solution was to re-direct the huge profits from State-Owned Enterprises (SOEs) to cover the losses.

The article advocated reform to tackle a few tough obstacles to economic development inherent in the structure of China’s communist system. However, Chinascope’s editors feel that the author’s suggestion for reform, insofar as it reduces the government’s income to give more to the general public, may fall on deaf ears in the Communist Party.] [1]

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Reports | | |   Report

A Chinese Military Scholar Commented on U.S. Military Exercises in the Asia Pacific

People’s Daily recently reported on Zhen Zehao, Associate Professor at the National Defense University, who stated in a commentary that the purpose of the U.S. military exercises in the Asia Pacific region is to contain China and reestablish its superpower image.  

Zhen said, “At the end of 2011, U.S. President Barack Obama proposed in high-profile "to return to the Asia-Pacific." Since then, the Pacific has no longer been ‘pacific.’ The United States has frequently organized joint military exercises in the Asia-Pacific region.” 
Zhen asked, “Why is the United States so fond of the Asia-Pacific region? Why does it so frequently use such an action as military exercises?" 
Zhen explained, “From a geostrategic perspective, the Asia-Pacific is an irreplaceable part of the ‘anticommunist levee’ that the U.S. has built in the Far East. Containing China in the Asia-Pacific region is an integral part of the U.S.’s China policy." 
“In recent years, by organizing a series of joint military exercises, the United States has sought to broaden its military presence in the Asia-Pacific region; it continues to strengthen its political and military intervention activities in the region; it has had a significant impact on security and stability in the Asia-Pacific region; and it has exacerbated conflicts of interest between all parties in the region. The region was thrown into a complex situation in which competition and cooperation are intertwined, causing a new round in an arms race that is leading the region to be ‘politically cold and economically hot.’” 
In conclusion, Zhen said, “The United States intends to use the joint military exercises to disrupt the order in the Asia-Pacific; it is taking full advantage of these military exercises to multilaterally contain China and thus enhance U.S. influence in the Asia-Pacific region. This is probably the most fundamental intent of the U.S. In addition, the United States has chosen the Asia-Pacific region, not only to use it as a trump card to clamp down on China’s ‘regional hegemony,’ but also to reinforce its far-reaching intention of displaying its power and reestablishing its superpower image.” 
Source: People’s Daily, April 8, 2013 
http://military.people.com.cn/n/2013/0408/c1011-21050399.html
Briefings | | |   US-China Relations

China’s M2 Exceeds 100 Trillion Yuan

According to People’s Bank of China’s latest release, in March 2013, M2, China’s broadest measure of money supply, reached 103.61 trillion yuan for the first time. Over the past 10 years, China’s M2 money supply has risen sixfold from 13 trillion yuan in 2000. It was just below 50 trillion yuan in 2008. However, starting in 2009, M2 increased 10 trillion every year. In 2012, it exceeded 97 trillion.

Currently, the ratio of China’s M2 to GDP is close to 190 percent. This number brings to light a clear acceleration when compared to recent years. It reflects the reality of a decreased return on investment and a narrowing path of economic growth driven by money supply.

Source: People’s Daily, April 12, 2013
http://www.people.com.cn/24hour/n/2013/0412/c25408-21108374.html

Briefings | | |   Economy/Resources

Xinhua: Who Really Wants to Make Trouble on the Korean Peninsula?

On April 11, 2013, Xinhua published an article by Hu Wenlong, research fellow at the China Academy of Military Sciences. Hu stated that it is inevitable and understandable that North Korea may be making trouble because of the U.N. Security Council sanctions resolution against North Korea. However, the United States may want North Korea to make trouble.

According to Hu, the U.S. response this time is different from its previous responses in three respects. First, its ultimate motive is different. The U.S. is not trying to diffuse the tension or push for negotiations. Instead, it is watching North Korea and following suit. It is escalating the military confrontation, thereby demonstrating its selfishness rather than a desire to safeguard world peace. “In fact, a phone call would diffuse the tension, but Obama does not pick up the phone.” Second, the U.S. is maneuvering things militarily. Besides issuing threats and escalating the situation, the U.S. is preparing for war. “More importantly, the U.S. is engaging in combat deployment and is rehearsing operations. Clearly the U.S. wants North Korea to make trouble. It is not the U.S.’s real wish for North Korea not to make trouble.” Third, the U.S. points a finger at China in order to mislead the media, to the extent that it wants to hold China responsible. “Now it is clearly pressuring China and blaming China for not taking tougher measures against North Korea. … Targeting North Korea is a pretext; targeting China is its true intent.”

Source: Xinhua, April 11, 2013
http://news.xinhuanet.com/world/2013-04/11/c_124564746.htm

Briefings | | |   Geo-Strategic Trend