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China’s High-Speed Rail Transportation Army’s First Exercise in Providing Food Rapidly

On July 15, 2012, China’s high-speed rail transportation army held its first exercise in rapidly providing food to the troops. In recent years, more and more military troops have been taking the high-speed railway to carry out their tasks. Quickly providing military provisions to PLA troops inside a train at a station will help the whole PLA establish a more perfect system for providing military provisions support.

Source: China Review News, July 15, 2012
http://www.zhgpl.com/doc/1021/6/8/2/102168214.html?coluid=4&kindid=16&docid=102168214&mdate=0715202537

CRN: China still has Three Policy Tools to Stabilize the Economy

China Review News (CRN) recently published an article that discussed the strategy for dealing with the current decline of the Chinese economy. The author suggested that the Chinese government still has three policy tools that it can use: (1) With the decline of the CPI (Consumer Price Index), China has more room to reduce the interest rate; (2) The government can still increase direct investments into the economy, although this may have a negative effect; (3) The central government can temporarily relax the restrictions on local governments’ borrowing power. The article expressed the belief that the government should determine a minimum risk control line which would serve as an indicator of whether or not to use some of these policy tools.
Source: China Review News, July 14, 2012
http://www.zhgpl.com/doc/1021/6/7/2/102167204.html?coluid=53&kindid=0&docid=102167204&mdate=0714062027

The U.S. Controls the Energy Card

The International Herald Leader recently published an article that suggested that the United States holds an “energy card” in its hands that it can play against China. Not long ago, the U.S. offered China relief from a sanction applying to any country that buys oil from Iran. However the relief is only effective for 6 months. The article expressed the belief that it is unfair for the U.S. to tell China which country China can buy oil from. However, the author admitted that the U.S. has 3 “energy advantages”: (1) China relies significantly more on Middle East oil than the United States does; (2) The U.S. has many more ways to influence the international oil price than China has; (3) The U.S. has a large degree of energy independence, while China is now the world’s biggest importer of energy. The article concluded by calling for serious consideration of the “worst case scenario,” which is that the U.S. can play the energy card to strategically suppress China.
Source: International Herald Leader, July 10, 2012
http://ihl.cankaoxiaoxi.com/2012/0710/59111.shtml

People’s Daily: Who is the Troublemaker for East Asian Security?

People’s Daily recently published an article discussing the heated security issues in East Asia. The article started with expressing the belief that, in terms of regional security, a new order is developing in the region. Some “forces outside the region” are interfering in the process of changing the order and have “introduced uncertainty.” The article stated that the status of the East Asian region is rising on a global basis. It is very important to identify the recent troublemaker in this region. The author suggested that, apparently, China has never been a troublemaker and has consistently demonstrated patience and a sense of responsibility at all times. China has large direct investments in nearby countries and has not become a threat. The article also insisted that freedom of navigation (an issue that the United States has raised) has nothing to do with the various recent conflicts in the South China Sea. The author referred to a Philippines’ web article that suggested: it “seems” that the only superpower left in the world, the United States, is trying to contain China.
Source: People’s Daily, July 11, 2012
http://gx.people.com.cn/n/2012/0711/c229266-17231746.html

Shenzhou-9 and People’s Livelihood

[Editor’s Note: On June 16, China launched the Shenzhou-9 spacecraft with three crew members. It docked successfully with the Tiangong-1 space station. While the state media kept praising this great achievement, the public questioned the relevance of such an expensive space program on people’s livelihoods. Netizens suggested it would be better to take the hundreds of billions of yuan that were spent on the space program and spend it on improving people’s living standards. One netizen even dug out a People’s Daily article written in 1977 that criticized the Soviet Union for its huge spending on space programs at the cost of people’s basic standard of living. The voice of concern got so loud that Xinhua published an article to argue that Shenzhou-9 was relevant to people’s livelihoods. The following are excerpts from these articles and from netizens’ comments.]

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Officials Appreciate Petitioners’ Contribution to China’s GDP

According to a commentator at Canyu.org., “GDP (Gross Domestic Product) was originally an economic concept but in China it has become a political issue: everyone, from the central government to officials from local governments, is busy paying attention to GDP, day in and day out."

The Canyu commentator has personally met with several dozen victims of corrupt official’s abuse of power. These victims are called “petitioners” (访民). They have been visiting and mailing petition letters to governments at all levels for many years, asking the authorities to investigate the abuse. A few examples are Ms. Xia Shuli, who has been sending petitions for seven to eight years, Xu Jianjiao for seven years, Ding Yijuan for 16 years, and Shen Zhihua for 20 years. The Canyu commentator estimated that Ms. Xia Shuli alone has mailed 97 registered letters to the authorities in the last year. “Based on statistics, there are over 500,000 regular petitioners in China. If each one of them does what Ms. Xia has been doing, just in postage, these petitioners must cause GDP to increase by 625 million yuan each year. I wonder why the State doesn’t resolve petitioners’ grievances. One of the reasons is so that these petitioners can contribute to GDP.”

Source: Canyu, July 14, 2012
http://www.canyu.org/n53914c6.aspx

State-Owned Enterprises Warned of Upcoming “Winter Conditions”

Shao Ning, Vice Chairman of the State-owned Assets Supervision and Administration Commission (SASAC), recently attended a management conference at which he stated, “After 30 years of rapid development, the Chinese economy has entered a period of contraction. State-owned Enterprises (SOEs) must prepare for ‘winter conditions’ in the next three to five years.” The first time that the SASAC discussed “winter” was last December when Huang Shuhe, a Deputy Director at SASAC warned twice that SOEs must be prepared for tough winter times in the next three to five years. SASAC Director Wang Yong made similar remarks last March. Wang stated that in a grim economic situation, the SOEs "should identify risk points by improving management and alleviating the bleeding.”

A China Entrepreneurs commentator stated that SOEs are not the only ones that must prepare for a cold winter. “Private enterprises, especially mid to small companies, need to do a better job of preparing for winter. When a cold winter comes, these companies will be the hardest hit as their struggle is in the midst of the market.”

Sources:
Xinhua, June 26, 2012
http://news.xinhuanet.com/fortune/2012-06/26/c_112287187.htm
China Entrepreneurs, July 9, 2012
http://www.iceo.com.cn/column/28/2012/0709/252364.shtml

IHL: China Should Take a Tough Stance to Make up for Its Military Disadvantage

The International Herald Leader published an article advocating that China be aggressive to make up for its weak military position. The article stated that it is wrong for a weak party to avoid confrontation with a strong opponent. “Patience in the face of a powerful and strong-willed combative opponent is useless because the party that wants to avoid resolving the problem by force cannot prevent a war …” The appeasement policy may also encourage the opponent to take a tougher stance and resort to military action. If China were to wait for the time when it is stronger than the U. S. before taking action in the South China Sea, China would be tying its own hands and feet. “China should demonstrate sufficient resolve to confront the U.S. intimidation tactics, such as visits by U.S. warships to sensitive countries and bilateral and multilateral joint military exercises. It should not retreat when both parties are merely exchanging words in the conflict.” The article concluded with a quote from a military strategist, “If your sword is shorter, you should take a step forward.”

Source: International Herald Leader, July 12, 2012
http://ihl.cankaoxiaoxi.com/2012/0712/60019.shtml