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Huanqiu: What Has Obama Done in Asia?

Huanqiu published a commentary on Obama’s activities in Asia over the past four years. It stated that, in less than three years, the U.S. has completed the initial phase of the formulation, promotion, and implementation of transferring its strategic priority to Asia and the Pacific region. The commentary contends, however, that such a move has destabilized the region. “The Obama administration has implemented a two-faced policy of exchanges and cooperation, along with deterrence and containment.” It has carried out “frequent military moves in order to quickly restrain China. The U.S. politicians have politicized trade disputes and those pertaining to cultural exchanges. Political biases in the U.S. have entangled or destroyed potential opportunities for cooperation.” The commentary further cited examples of the U.S. activities that have had a destabilizing effect, such as “sowing discord and forming gangs” among Asian countries and increasing the U.S. military presence in Australia.

Source: Huanqiu, July 24, 2012
http://opinion.huanqiu.com/1152/2012-07/2944180.html

Zhou Yongkang: Enhance Stability Work in Beijing, Xinjiang, Tibet, and Other Key Areas

On July 17, 2012, China’s security tsar, Zhou Yongkang, the head of China’s Central Political and Legislative Committee, delivered a speech at the Television and Telephone Conference on Maintaining Nationwide Stability. Zhou stressed the importance of creating a safe, stable, and peaceful social environment for the successful opening of the CCP’s Eighteenth National People’s Congress. According to Zhou, maintaining stability is the primary responsibility of the Party committees and governments at all levels; stability work should be enhanced in the capital in Beijing, in Xinjiang, in Tibet, and in other key areas. “Try hard to solve conflicts in the local areas when they are at the very beginning stage and build up the first line of defense to maintain stability.”

Source: China Review News, July 17, 2012
http://www.zhgpl.com/doc/1021/7/0/4/102170419.html?coluid=151&kindid=0&docid=102170419&mdate=0717203059  

Qiushi: Beware of the Real Economy Being Virtualized

On July 20, 2012, Qiushi, a journal of the Central Committee of the Chinese Communist Party (CCP), reprinted an article from the China Jinggangshan Executive Leadership Academy Journal titled “Beware of the Real Economy Being Virtualized.” The real economy, which refers to the production and service sectors, is declining in China due to higher costs (of goods and labor), heavy taxes, overcapacity, limited investment, financing problems, and a lack of innovation.

However, the virtual economy is overly booming in China due to the huge returns from real estate, the stock market, the futures market, coal resources, antiques, art works, financial products, loan sharking, and the speculative markets for some agricultural products. Such a phenomenon poses a significant potential risk for sustainable economic development in China. In analyzing the main reasons behind the virtualization of the real economy, the article’s writer proposed some solutions for improvement.

Source: Qiushi, July 20, 2012
http://www.qstheory.cn/jj/xsdt/201207/t20120723_171534.htm

Guangdong Security Chief: Maintain Stability by Protecting the Rights of the People

Zhu Mingguo, the Guangdong Provincial Political and Legislative Committee Secretary, recently delivered a speech at a conference of the Guangdong political and legislative system leading cadres. Zhu emphasized the protection of the people’s rights and the engagement of a full negotiation with the people in stability maintenance work. Zhu expressed his preference for maintaining stability in a harmonious way. 

Source: China Review News, July 18, 2012
http://www.zhgpl.com/doc/1021/7/0/7/102170729.html?coluid=151&kindid=0&docid=102170729&mdate=0718091843

Xinhua: Only One China-Concept IPO in U.S. Stock Market

Xinhua recently reported that, in the first half of this year, only one Chinese company had its IPO in the U.S. stock market. That one stock dropped below its issuing price on the first day it was offered. It seems the “IPO window” for Chinese stocks will not be open this year. Given this circumstance, 14 Chinese companies went through the privatization process in order to withdraw from the U.S. stock market. There are two primary reasons for this situation: 1) The poor performance of the global economy has resulted in U.S investors having a conservative attitude; 2) The China-Concept stocks are still suffering from their poor credit background.
Source: Xinhua, July 21, 2012
http://news.xinhuanet.com/finance/2012-07/21/c_123450036.htm

National Bureau of Statistics: Housing Market Still at Key Crossroads

China Review News (CRN) recently reported that the National Bureau of Statistics released its June report on the housing market. The report showed that 25 out of 70 major and mid-sized Chinese cities reported housing price increases. That number is 19 more than the number from May. However, most of the cities have lower prices than last year. For example, for new real estate, Beijing, Shanghai, Guangzhou, and Shenzhen fell 1.3 percent, 1.9 percent, 1.6 percent, and 2.5 percent, respectively. Experts suggested that there are 3 reasons of the recent June price rebound: 1) Lower interest rates (the central bank lowered the interest rate twice in one month); 2) Worries in the market of the possibility of a big price rebound; 3) Some sellers obtained good sales results after lowering prices earlier and are now marking the prices up. It is widely believed that the government imposed market adjustments are still at a critical stage before housing prices return to a reasonable level. 
Source: China Review News, July 18, 2012
http://www.zhgpl.com/doc/1021/7/1/3/102171322.html?coluid=45&kindid=0&docid=102171322&mdate=0718160342

Premier Wen Jiabao Warns of a Tougher Labor Market Ahead

On July 17, 2012, the National Work Force Employment Conference was held in the Great Hall of the People in Beijing. Premier Wen Jiabao attended the conference and spoke on labor issues. He stressed the importance of creating job opportunities and noted that it is a top priority to protect and secure people’s livelihoods. Wen asked all levels of government bodies to gain a better understanding of the urgency. He also recognized that the current and future job market faces more complicated and serious challenges and said that a bigger effort was needed to create more job opportunities.
 
According to official statistics, in urban and rural areas, a total of 98 million new employment positions were created between 2003 to 2011. Among those 40 million were for college graduates, 30 million were for workers from state-owned enterprises who had been laid off, and 28 million were for laid off workforce who had re-entered the work force. By the end of 2011, the total number of peasant workers had reached 250 million, up by 139 million from 2003. Each year, there are a total 12 million professional workers taking middle to advanced vocational education classes and 150 million taking training courses.

Source: Xinhua, July 18, 2012
http://news.xinhuanet.com/2012-07/17/c_112460838.htm

China News Review: We Need to Be Fully Prepared for Economic Difficulties

China News Review published an opinion article about China’s current economic environment. According to the article, from July 13 to 15, Premier Wen Jiabao visited Chengdu City in Sichuan Province, where he held a forum on the current economic climate in Henan, Hunan, Guangxi, Sichuan and Shanxi provinces. According to Wen, China’s economic growth rate is in a steady and stable state and still within the expected target set at the beginning of the year. However, the current economic climate is not showing signs of improvement. The economic difficulties are expected to continue for an extended period of time.

China News Review cited figures that the Ministry of Statistics published, saying GDP for the first half grew 7.8 percent, down from 8.1 percent in the first quarter. GDP for the second quarter grew 7.6 percent, falling below 8 percent for the first time in three years. The official June Purchasing Manager’s Index reached 50.2, an indication that there is still growth in the manufacturing sector. The article stated, “The statistics for the second quarter suggest that China’s economy is facing tougher challenges than expected and will not see signs of recovery very soon.”

Source: China News Review, July 17, 2012
http://opinion.china.com.cn/opinion_14_46714.html