Chinascope – Page 918

China to Up Overseas Investment Despite Huawei and ZTE Probe

China’s National Development and Reform Commission (NDRC) announced 16 overseas investment projects, as two of its largest telecommunications companies – Huawei and ZTE – are blocked by U.S. lawmakers as national security threat.

According to Xinhua, the sheer number of the announced projects hit a new high this year, including seven energy related projects as well as others spanning the areas of finance, communications, and infrastructure. A Ministry of Commerce official said that the government is willing to support enterprises’ overseas direct investment to divert the excess capacity and alleviate the Europe and the U.S.’s anti-dumping pressure.

The official statistics show that China’s net overseas direct investment in 2011 was $74.65 billion, a year-on-year growth of 8.5%, ranking No. 6 around the world. As of the end of 2011, a total of 13,500 investors established 18,000 enterprises in 177 countries (regions). It’s estimated that the investment will exceed $500 billion during the “12th Five-Year Plan” period (2012 – 2017).

Source: Xinhua, October 11, 2012
http://news.xinhuanet.com/2012-10/11/c_113343280.htm

Briefings | | October 11, 2012 | Geo-Strategic Trend

Qiushi: China Must Keep a Low Profile and Bide Its Time

Qiushi published an article stating that, in spite of its economic growth, China must still keep a low profile. “It is a question that the next several generations will face and ponder as to what kind of country today’s China, as a world-class country, should develop into, and in what way China should influence the world. From an analysis of the rise and fall of major powers from an economic development perspective, one may identify some enlightening norms. China does not have the requisite conditions to become a super power in the next 50 years and should not seek to become one. Particularly, it should not engage in direct confrontation with the United States; we need to keep a low profile and bide our time. In the complicated international environment and the gaming of major powers, it is both an urgent need and a long term task to overcome difficulties and seek room for development. [We] must not be penny wise and pound foolish and lose the opportunity to truly ‘rise.’”

Source: Qiushi, October 9, 2012
http://www.qstheory.cn/jj/jjggyfz/201210/t20121009_185175.htm

Briefings | | October 11, 2012 | Government/Politics

People’s Daily: Noda’s Government Can No Longer Resolve the Diaoyu Islands Crisis

People’s Daily published an article on its website analyzing the Japanese media’s reaction to China’s handling of the latest Diaoyu Islands dispute. The article observed that China’s four state-owned commercial banks refused to attend the annual meeting of the International Monetary Fund (IMF) and the World Bank held in Tokyo, Japan on October 9, 2012. This has made the Japanese media extremely worried.

On October 9, Chinese fishing boats and ocean surveillance ships appeared again in the Diaoyu Islands’ waters. The Japanese media seemed to have nothing else to talk about except for the "Chinese government ships cruising the Diaoyu Islands" for nine consecutive days.

Chinese scholars believe that, after the Democratic Party of Japan came to power, they crossed the “not-to-touch” bottom line that both sides, Japan and China, had set on the Diaoyu Islands issue and have made it so the "mutual trust" no longer exists. In the "Diaoyu Islands collision incident in September 2010, the Japanese side arrested Chinese captain Zhan Qixiong and handled the incident using Japanese domestic law; then again last month, Japan nationalized the Diaoyu Islands according to Japanese law. "Today, China no longer trusts Noda’s government; we expect that the next Japanese government will be able to deal more flexibly with the Diaoyu Islands issue."

Source: People’s Daily, October 10, 2012

http://world.people.com.cn/n/2012/1010/c1002-19221920.html

Briefings | | October 11, 2012 | Geo-Strategic Trend

People’s Daily on the Party’s Leadership in Managing Talent

On October 9, 2012, People’s Daily published an article titled “Improve the Party’s Leadership in Managing Talent; Gather Talent for the Cause of the Party and the Nation’s Development.” It also explained a previous article, “Opinions on Further Strengthening the Party’s Leadership over Talent,” which the General Office of the CCP Central Committee published on September 26, 2012.

According to the articles, the Chinese Communist Party’s leadership over talent is an important principle in talent management work.

Source: People’s Daily, October 9, 2012
http://politics.people.com.cn/n/2012/1009/c1001-19198266.html

Briefings | | October 10, 2012 | Government/Politics

RFA: Chinese People Are Following the U.S. Presidential TV Debates

On October 5, 2012, Radio Free Asia published an article on news in China about the first U.S. Presidential debate. Since the Thursday before the debate, 400,000 news reports about the U.S. presidential election have appeared on mainland China’s social media. Some netizens have opened “U.S. Presidential Election” microblogs, collecting all of the articles about the election. Sina’s official microblog also opened “Micro Topic,” allowing people to discuss the U.S. presidential election.

Many netizens’ messages show how an atmosphere in which ordinary people in a democratic country participate in general elections has an effect on the people in China. They are having new thoughts about democracy. “Only by achieving democracy in the political process can the administration of government be open and transparent.”

Source: Radio Free Asia, October 5, 2012
http://www.rfa.org/mandarin/yataibaodao/sy-10052012111750.html

Briefings | | October 10, 2012 | US-China Relations

Huanqiu Editorial: The U.S. Must Suffer Retaliation for Creating Trouble for China’s Companies

On Oct. 10, 2012, Huanqiu (the Chinese edition of Global Times) published an editorial titled, “The U.S. Must Be Subjected to Retaliation for Creating Trouble for Chinese Companies.” U.S. lawmakers are seeking to block Huawei and ZTE, China’s top network equipment makers, from doing business in the U.S. because of national security reasons.

The Huanqiu editorial asserted, “China needs to be serious about protecting its own enterprises. It should have the courage and the willingness to use state power to retaliate against those countries that make trouble for China’s enterprises. China must take action to let the United States and Europe understand that, if Chinese enterprises encounter trouble in their countries, their companies in China will then become scapegoats. Now is the time for China to show its determination to the United States and Europe.”

Source: Huanqiu, October 10, 2012
http://opinion.huanqiu.com/1152/2012-10/3172166.html

Briefings | | October 10, 2012 | US-China Relations

CRN: Dropping U.S Bond Prices Causes Inflation Concerns

China Review News (CRN) recently reported that U.S. 10-year and 30-year bond prices are dropping. The price drop occurred just at the time when the Federal Reserve announced its QE3 policies, which caused a lot of concern about inflation. The Federal Reserve is scheduled to release its September meeting minutes. The difference between the yields of the inflation-indexed bonds and the regular 10-year bonds is commonly used to measure expected consumer prices. That difference is 2.48 percent, which is higher than the same number collected at the end of last year (1.95 percent). Some experts expressed the belief that the U.S. economy may slow a little bit but won’t fall. The Federal Reserve is to ensure growth and it should monitor inflation. However this may weaken the demand for long term bonds.

Source: China Review News, October 5, 2012

http://www.zhgpl.com/doc/1022/5/8/1/102258102.html?coluid=148&kindid=7551&docid=102258102&mdate=1005174237

Briefings | | October 9, 2012 | Economy/Resources

Xinhua: Holiday Economy Can Be Strategic for Domestic Consumer Spending

Xinhua reported that the recent Mid-Autumn Holidays delivered an unexpected test result on the newly implemented no-fee freeway policy for vehicles with seven seats or less. Stimulated by this new policy, a large number of car owners took the opportunity to travel. As a result, surprisingly strong consumer spending took place at tourist attractions during China’s Golden Week. The holiday, which started on National Day on October 1, commemorates the anniversary of the founding of the PRC on October 1, 1949. National statistics showed that 119 famous tourist attractions reported an average sales increase of 19.47 percent as compared to the same period last year. Freeway traffic volume in Beijing, Shanghai, and Nanjing increased 30 percent to 70 percent. The number of domestic tourists was estimated to reach 345 million for the holiday week alone. However, the extremely high traffic volume in some areas caused major congestion, which also made news. Economists took notes and are studying the value of this phenomenon as a strategic base for stimulating domestic consumer spending so as to give a boost to the falling economy.

Source: Xinhua, October 7, 2012

http://news.xinhuanet.com/fortune/2012-10/07/c_113289037.htm

Briefings | | October 9, 2012 | Economy/Resources

China’s Reaction to Trump’s Election Win

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

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