Twenty years ago, the United States won the cold war by disintegrating the Soviet Union. Now, facing the People’s Republic of China, a regime that once looked up to the Soviet as the “Big Brother,” and whose economic and military strength still lags behind that of the United States, the United States often finds itself accommodating to instead of changing China. The fact is: the United States has grown ever weaker in promoting human rights and democracy in China, while the PRC has grown more assertive in the international arena.
The Mirror of China’s Failing State
Finally a few Western media have begun to look beyond the ravages of what the Chinese government falsely claimed to be a “once-in-60-years” rainstorm in Beijing and question how very fragile the infrastructure of the world’s number-two economy really is.
Social Unrest over Man’s Death
A driver died during a traffic incident sparking an incident of social unrest that pitted several thousand people against the authorities in Luzhou, Sichuan. According to Huanqiu, which reprinted the version that the local government publicized, the traffic police directed the driver to move his vehicle, which was illegally parked, but the driver refused. The driver did not feel well and, after taking some medicine, died on site. The Luzhou government “reminded the residents that they should not believe or spread any rumors.”
Xinhua later reported that, during the incident, about a thousand people gathered. Some of them were emotional and attacked police vehicles. They overturned seven vehicles and set five of them on fire. Two were entirely burned as a result. “After patient persuasion, the driver’s relatives voluntarily brought the body to the city funeral home. … During the incident, Public Security took custody of 20 people and no one was injured or died.” The local government hoped the residents would not believe or spread rumors.
[Editor’s note: According to online miniblog posts, the 57-year-old man argued with the police who then pushed and kicked him, leading to his death. This incident occurred within three weeks of the Eighteenth Congress of the Chinese Communist Party.]
Sources:
Huanqiu, October 18, 2012
http://china.huanqiu.com/local/2012-10/3197614.html
Xinhua, October 18, 2012
http://news.xinhuanet.com/legal/2012-10/18/c_123838416.htm
Beijing Police Heighten Security on the Eve of Party’s Congress
China North Industries Group Corporation donated 500 units of the Beidou Positioning system to the Beijing Public Security Bureau to be installed in the first line patrol vehicles and in telecom command vehicles. They are meant to provide technological support to the 18th Congress of the Chinese Communist Party, which will be held on November 8, 2012. People’s Daily reported that the Beidou positioning systems will effectively improve the positioning capability of police vehicles in terms of reliability and security. In addition, Beidou’s texting function will serve as a reliable means of communication for all levels of command during an emergency.
Source: People’s Daily, October 19, 2012
http://society.people.com.cn/n/2012/1019/c223276-19315774.html
Xinhua: Seventy Percent of Chinese Workers Take Overtime
Xinhua recently reported on a national survey on how the Chinese work force population spent its work and leisure time. The survey covered the two year period of 2011 and 2012. The results showed that 69.4 percent of the work force worked some amount of overtime. A total of 24 percent of the people surveyed worked 51 to 70 hours per week. Only 30.4 percent of the work force actually enjoyed an 8-hour work day. A 41.1 percent share of the entire sample surveyed had less than 10 hours of “leisure time” per week. 46.8 percent of the people surveyed stated that they had suffered a decline in available “leisure time.” 5.1 percent of the sample said they had “nearly no leisure time.” The weekly “leisure time” total actually declined over the past three years. Experts expressed the belief that the survey reflected that people are under significant pressure at work. The primary cause of the high pressure is the economic growth model.
Source: Xinhua, October 14, 2012
http://news.xinhuanet.com/fortune/2012-10/14/c_113361441.htm
Xinhua: Canada Extended Review Schedule for CNOOC Acquisition of Nexen
Xinhua recently reported that Paradis, the Canadian Minister of Industry, announced on October 10, 2012, that the federal schedule for review of China National Offshore Oil Corporation’s (CNOOC’s) acquisition of the Canadian energy company Nexen will be extended for 30 more days. Under the Investment Canada Act, the transaction is subject to the approval of the Federal Government of Canada. The Act was designed to regulate transactions over CAN$330 million to ensure that Canada will enjoy a “net profit.” If the US$15.1 billion acquisition is successful, it will become China’s largest acquisition of an overseas company. Paradis’ announcement suggested that the case is under “complete, careful, and strict” review. Nexen is a global independent energy company listed on the Toronto and New York stock exchanges. The company focuses on the development of Western Canada’s oil sands and shale gas, as well as conventional oil and gas exploration in the North Sea, offshore West Africa, and the deep-water Gulf of Mexico.
Source: Xinhua, October 12, 2012
http://news.xinhuanet.com/fortune/2012-10/12/c_123812747.htm
CRN: China’s Era of Cheap Capital is Over
China Review News (CRN) recently published a commentary discussing a major economic turning point in that China will no longer be able to rely on an overabundance of residents’ savings. China’s past economic growth heavily relied on cheap capital provided by the savings people had in the bank. Because of these savings, China had a very low investment cost to subsidize its globalization effort. China’s growth also relied on an extremely low costs for labor, land, natural resources, and environmental protection. However, the prices of these factors of production have been increasing and are about to reach a point where a revaluation will be inevitable. Chinese society is aging, which will result in a decline in the size of the labor force. China is also facing a bottleneck in the area of natural resources, along with a seriously declining living environment. Low efficiency and pollution are raising serious questions about the sustainability of China’s growth. The recent global downturn is causing a heavy decline in market demand. The global capital flow is experiencing a process of re-balancing. China’s current export-oriented model will have to face the challenge of a major adjustment.
Source: China Review News, October 11, 2012
http://www.zhgpl.com/doc/1022/6/3/9/102263933.html?coluid=53&kindid=0&docid=102263933&mdate=1011065658
Sany Holds Press Conference on Lawsuit against Obama on Wind Farm Sale
Xinhua reported that Sany Group, a plaintiff in a lawsuit against President Obama for blocking its purchase of wind farms near a U.S. military base, will hold a press conference on October 18, 2012, to provide an update on the case. On September 28, 2012, Obama signed a decree banning the sale of four wind farms in Oregon to the Ralls Corp. and its Chinese affiliate, Sany Group, on national security grounds. “As for this incident, Xiang Wenbo (the president of Sany) expressed that ‘hopefully the upcoming press conference will, in addition to clarifying the true facts, allow Chinese to further understand America and international trade, and to learn how to audaciously protect the rights of Chinese companies during the process of globalization.’”
Source: Xinhua, October 17, 2012
http://news.xinhuanet.com/fortune/2012-10/17/c_123831810.htm