Chinascope – Page 908

Government Procurement Market Lacks Transparency

The China Federation of Logistics & Purchasing (CFLP) announced that the China Public Procurement website (http://www.china-cpp.com/) has been officially established, with headquarters in Wuhan, Hubei Province. It is considered the world’s largest online trading and service center.

According to Chen Yuanzhong, Vice Chairman of the CFLP, government procurement in 2011 was 11.3 trillion yuan (US$1.8 trillion), which accounted for 11 percent of total fiscal spending. However, government procurement is not regulated and lacks transparency and efficiency. China’s procurement market would reach 50 trillion yuan (US$8 trillion) if spending on education, health, housing, railroad, transportation, and energy were included. This number makes China the largest procurement market in the world.

Source: Xinhua, November 4, 2012
http://news.xinhuanet.com/fortune/2012-11/04/c_113597255.htm

Briefings | | November 5, 2012 | Economy/Resources

China to Reform the Pay Scale in State Owned Enterprises

Qiu Xiaoping, vice minister of the Ministry of Human Resources and Social Security, disclosed that a reform will take place in managing the pay scale in state owned enterprises. Tighter control will be exercised over high-income professions.

Qiu stated that the Ministry needs to establish a reasonable control over income allocation and set up a minimum wage standard and rate of increase for wages. The Ministry also needs to build an infrastructure system to conduct pay scale research and information sharing while building a pay scale database for companies to use as a reference.

According to statistics, from 2002 to 2011, the average salary in urban regions grew 14.63 percent from 12,422 yuan (US $1,990) to 42,452 yuan (US $6,802). Farm workers have become the main workforce reaching 252 million in 2011. It was also disclosed that certain high ranking managers in state owned enterprises make a million or even a billion yuan in annual salary. It was suggested that their income shouldn’t be higher than three times the salary of those in a public servant position ranked at the same level.

Source: People’s Daily, October 31, 2012
http://politics.people.com.cn/n/2012/1031/c1001-19442054.html

Briefings | | November 5, 2012 | Economy/Resources

PLA Daily: Resolutely Follow the Commands of Hu Jintao

On November 1, 2012, the People’s Liberation Army Daily issued an editorial in support of Hu Jintao. The editorial stressed the Communist Party’s absolute control over the military. It stated that the military is the main support for the Party and the country; it is responsible for the Party’s political dominance, implying that the role of the military in the rifts among the Party leaders is critical. The editorial warned, “The hostile forces in and outside China are ready to make trouble. … (We) must keep a clear mind and take a firm stand on major issues. … (The military) must consciously be highly consistent with the Party Central Committee and the Central Military Commission ideologically, politically, and in action and resolutely follow the commands of the Party Central Committee, the Central Military Commission, and Chairman Hu.

[Editor’s note: The PLA editorial on November 1, 2012, has been interpreted as showing support for Premiere Wen Jiabao after the New York Times published an article on October 26, titled “Billions in Hidden Riches for Family of Chinese Leader,” referring to Wen Jiabao. Wen, who is close to Hu Jintao, is known for his stance against the faction of former President Jiang Zemin and his cohorts such as the demoted Bo Xilai who, according to reports, was instrumental in the forced organ harvesting of Falun Gong practitioners in China.]

Source: People’s Liberation Army Daily reprinted on the Chinese Communist Party website, November 1, 2012
http://theory.people.com.cn/n/2012/1101/c49151-19459961.html

Briefings | | November 2, 2012 | Government/Politics

Military Expert: China Is only 15-Years behind the U.S. and Russia in Fighter Development

On October 31, 2012, China’s second stealth jet fighter, the J-31, made its successful maiden flight. Commenting on the significance of the event, China’s aviation expert, Yongling Xu, said in an exclusive interview with a People’s Daily reporter, "China has narrowed the gap in the field of aviation technology between itself and foreign advanced countries to about 15 years. With the support of China’s strong national (financial) power, coupled with the ingenuity of the Chinese people, the day that China’s aviation industry catches up with the United States is just around the corner.”

Source: People’s Daily, November 1, 2012

http://military.people.com.cn/n/2012/1101/c1011-19464982.html

Briefings | | November 2, 2012 | Defense/Military

China’s Fiscal Revenue Slows Down, with Non-tax Revenue Filling the Gap

The Ministry of Finance’s statistics show that the fiscal revenue for January-September was 9.1 trillion yuan (US$1.5 trillion), an increase of 892.5 billion (US$143 billion) or 10.9% over the same period last year and 18.6 percent points lower than the growth for the same period last year. The tax revenue was 7.7 trillion yuan (US$1.2 trillion), a year-over-year increase of 8.6 percent, down 18.8 percent from the same period last year.

According to an official from the Ministry, since the beginning of this year, due to the downward macroeconomic pressure, the local fiscal revenue growth turned weak. To compensate for the gap, non-tax revenues, or various types of fees, are becoming an increasing source of fiscal revenue.

For the first three quarters of 2012, the non-tax revenue in many provinces and cities has grown far more than the tax revenue. Tianjin saw an increase in non-tax revenue (54.75%) that was more than 40 percentage points higher than the increase in tax revenue (10.86%); Anhui’s non-tax revenue (52.1%) increased more than 30 percentage points more than tax revenue (15.3%); Guangdong had non-tax revenue (25.89%) growing higher than the tax revenue (8.15%) of nearly 18 percentage points. In some places, imposing fines has become an important part of the non-tax revenue.

Source: Nanfang Weekend, October 30, 2012
http://www.infzm.com/content/82459

Briefings | | November 1, 2012 | Economy/Resources

China News Week: American Groups, in the China School Camp (Pro-China) or the Anti-China Camp?

China Newsweek published an article that categorized a handful of American organizations into one of two camps: the “China School (pro-China) camp” and the “anti-China camp.”

The “anti-China camp” includes the following: 1) the U.S. military industrial complex (U.S. military institutions, arms dealers, and its associated consortium); 2) the AFL-CIO; 3) American religious organizations; 4) Human Rights Watch; 5) The National Endowment for Democracy; 6) the U.S. Business & Industry Council; 7) the U.S. Congressional Human Rights Caucus; 8) the U.S. Tibet Committee for Refugees; 9) Radio Free Asia; 10) the United Steelworkers of America; 11) the United Auto Workers Union; 12) the Alliance of American Manufacturing.

The “pro-China camp” includes: 1) the America-China Society; 2) the National Committee on United States-China Relations; 3) the United States-China Business Council (USCBC); 4) the Sino-U.S. Joint Economic Committee; 5) the Sino-U.S. Joint Commission on Commerce and Trade; 6) the National U.S.-China People’s Friendship Association (USCPFA); 7) the U.S.-China Chamber of Commerce; 8) The Committee of 100; 9). the U.S.-China Association for Promotion of Economy and Trade (UCAPET); 10) the China General Chamber of Commerce – U.S.A.; 11) the American Chinese Federation of Industry & Commerce; 12) Large American enterprises that have a high degree of globalization, such as Microsoft, Boeing, and the giants of the U.S. auto industry.

Source: China Newsweek, October 25, 2012

http://insight.inewsweek.cn/report-7630-page-6.html

Briefings | | November 1, 2012 | US-China Relations

Wen Jiabao Requests Open Investigation on His Property and Assets to Prove His Innocence

On October 29, 2012, China Gate reprinted an article from Ming Pao (the original article cannot be found) titled “Wen Jiabao Sent a Letter to the CCP Central Committee Requesting an Open Investigation of His Property and Assets to Prove His Innocence.” Wen asked for the “immediate establishment of a specialized agency … to carry out a full and open investigation of the rumors of my corruption … by inviting both Chinese and foreign media representatives to participate in the investigation.” Mr. Wen said that he and his family members would “unconditionally and absolutely cooperate with an open investigation.” Mr. Wen also said that if an open investigation is not allowed, an independent investigation is welcome; if no investigation is allowed, he asked permission from the top CCP leadership to allow him to publicize his personal property and assets. Wen Jiabao has suggested many times that all the CCP and government officials should be open with the public about their property and assets. He said he was willing to be the first one to publicize his assets.

This is the fifth time Wen Jiabao formally wrote letter to the CCP top leadership requesting an independent investigation of himself and his family members. Although the CCP top leadership has never openly accepted Wen Jiabao’s request, an agency led by a high official has conducted several very strict investigations of the so-called Wen Jiabao family corruption case. No evidence of any corruption has been found.

Source: China Gate, October 29, 2012
http://www.wenxuecity.com/news/2012/10/29/2054108.html

Briefings | | October 31, 2012 | Government/Politics

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.