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China’s Reaction to Trump’s Election Win

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

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Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

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Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

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Nanfang Weekend: The First Massive Layoffs in China

[Editor’s Note: Nanfang Weekend reported that, due to the reduction in the rate of growth of China’s economy, Chinese companies have started their first round of massive layoffs. These companies range from the global ones to Chinese brand names and from state-owned enterprises to local small businesses. Although the layoffs are taking place quietly in many places, they are widespread and their impact has been devastating. The following is a translation of an excerpt from the article.] [1]

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Reports | | |   Report

The Role of the State-Owned Enterprises in China’s Economy

Of the top 500 companies in China, 316 are State-Owned Enterprises (SOEs). They account for 82.82 percent of the total revenue, 90.40% of the total assets, and 81.88% of the total profit of these 500 companies. The top 10 most profitable companies are all SOEs, including three oil companies and five banks.

As of 2007, there were 112,000 SOEs in China, of which 118 were central government owned while the rest were local governments owned.

Until 1994, SOEs had to turn over all their profits to the state’s coffers. From 1994 to 2007, SOEs kept their profits and instead, were required to pay taxes. In 2007, SOEs resumed turning over part of their profits. Depending on different industries, the rates varied from 0 percent, 3 year deferral, to 5 percent and 10 percent. Beginning in 2010, the rates changed to 0 percent, 5 percent, 10 percent, and 15 percent.

The 2011 statistics show that the central government owned SOEs turned over 82.3 billion yuan to the state, accounting for 7.4 percent of their total profits. In 2011 the net profits of these central government owned SOEs went up by 9.7 percent, while the profits they turned over to the State’s coffers increased by 8.7 percent. No explanation was given for the difference in the published official statistics.

(Editor’s note: Although the above information was released at cnpolitics.org back in April, we believe our readers may find these statistics thought-provoking.)

Source: cnpolitics.org, April 12, 2012
http://cnpolitics.org/2012/04/state-owned-enterprise/

Briefings | | |   Economy/Resources

Bo Xilai Implicated in Heywood’s Murder

Xinhua reported on the two day trial of former police chief Wang Lijun at the Chengdu Intermediate Court. It took place on September 17 and 18, 2012. “The Public Procurator produced relevant evidence. Two lawyers that Wang appointed presented his defense. The court announced that the judgment will be announced at a later date.”

“The testimonies of witnesses show that on January 28, 2012, when Wang reported to the then official in charge at the Chongqing Party Committee that Bo Gu Kalai might possibly be a major suspect in the November 15, 2011, (Heywood murder) case, Wang was angrily rebuked and slapped in the face.” Xinhua did not name Bo Xilai.

“On February 6, Wang canceled his scheduled official duties saying he had conflicts due to other engagements. At 14:31, Wang entered the Consular General’s office of the United States in Chengdu without authorization.”

“The indictment of the Public Procurator shows that Wang had a brief conversation with consular officials about environmental protection, education, and other matters. Wang then requested the United States to provide asylum and wrote an application for political asylum saying that he had received a threat to his personal safety as a result of investigating a case.”

Source: Xinhua reprinted by People’s Daily, September 20, 2012
http://leaders.people.com.cn/n/2012/0920/c58278-19056593.html

Briefings | | |   Government/Politics

China Says the United States Is not Qualified to Act as a “Mediator” on the Diaoyu Islands Issue

Xinhua used the column called “Chen Fu Discusses the Military” to published a statement about the possible role of the U.S. in the Diaoyu Islands dispute. The statement said, “U.S. Defense Secretary Panetta’s visit to China happens to be at a time when the East China Sea dispute over the Diaoyu Islands is growing more intense. Many people believe that it is inevitable for Panetta to discuss the Diaoyu Islands issue during his visit to Japan and China. Some people even expect the U.S. to act as a ‘mediator’ during the dispute.” 

The Xinhua statement dismissed such reports, saying that “Panetta’s China visit was scheduled previously. It’s just a response to Chinese Defense Minister Liang Guanglie’s U.S. visit.” 
The statement explained further that “the United States is part of the cause of the dispute over the Diaoyu Islands. On the one hand, the U.S. states that it does not maintain any position on the Diaoyu Islands dispute. On the other hand, the U.S. has repeatedly stressed that the Japan-U.S. Security Treaty applies to the Diaoyu Islands, which is an ambiguous but tendentious attitude. Therefore, the United States does not have the qualifications to act as a ‘mediator.’ It is also not possible for U.S. to act as a truly neutral ‘mediator.’ At the same time, China and Japan can resolve the issue by themselves. There is no need for a third party to act as a ‘mediator.’” 
Source: Xinhua, September 20, 2012
http://news.xinhuanet.com/mil/2012-09/20/c_123737948.htm
Briefings | | |   Defense/Military

RFA: 37 Bridges Collapsed in Five Years

Radio Free Asia reported that 37 bridges have collapsed in China since 2007, including the last one, Yang Ming Tan bridge in Haerbing, which collapsed on August 24. The incidents have made people wonder about the quality of China’s bridges, but experts believe that the collapse of the bridges was caused by overall mismanagement, including using substandard materials, excessive sand mining near the bridges, and overloaded trucks (driving on the bridges). Another contributing factor was the lack of openness in the official reports of the investigations of the incidents, as most of the reports focused only on the accidents themselves. According to Radio Free Asia, therefore, there is lack of public supervision, .

Source: Radio Free Asia, September 12, 2012
http://www.rfa.org/mandarin/yataibaodao/xql-09122012163445.html

Briefings | | |   Economy/Resources

China Increases Patrol Ships to Sixteen in Diaoyu Islands

As of September 19, 2012, China has increased the number of its ocean surveillance, fishery, and other official boats patrolling the Diaoyu Islands waters to 16. 

According to news from the Zhejiang Ocean and Fishery Bureau, more than 700 Zhejiang fishing boats are conducting fishing operations near the Diaoyu Islands waters. Some of the fishing boats are only 30 nautical miles away from yellow tail Island. 
Source: Xinhua, September 20, 2012 
http://news.xinhuanet.com/mil/2012-09/20/c_123737217.htm
Briefings | | |   Geo-Strategic Trend

2012 Internet Roundtable for Emerging Countries

China’s state-run Xinhua News Agency reported on some remarks that Wang Chen, head of the State Internet Information Office, made in a keynote speech at the 2012 Internet Roundtable for Emerging Countries in Beijing.
Wang said, "Emerging countries have a lot of common understanding, similar conduct, and appeals regarding the development of the Internet, as well as common interests and a sound basis for cooperation." 
The roundtable, attended by government officials, Internet experts, and corporate representatives from China, Russia, Brazil, and South Africa was intended as a platform for emerging countries to conduct exchanges and share experiences regarding the development of the Internet, he said.
The annual Internet Roundtable aims to increase Internet-related cooperation between China and other emerging nations to cope with increasingly severe challenges in Internet security.
Source: Xinhua, September 18, 2012
http://news.xinhuanet.com/politics/2012-09/18/c_113123769.htm
Briefings | | |   Geo-Strategic Trend

RFA: The Ratio of Chinese Residents’ Income to GDP Has Been Declining

Radio Free Asia published an article on September 18, 2012, titled “The Ratio of Chinese Residents’ Income to GDP Has Been Declining." The Labor and Wage Institute under the Ministry of Human Resources and Social Security of the People’s Republic of China recently published the “2011 China Wages Report.” According to the report, Chinese residents’ income increased 14.1 percent last year. However, the actual growth was only 8.4 percent, 0.8 percent lower than last years’ GDP, after deducting price factors.

In 2011, the Chinese government’s fiscal revenue grew 24.8 percent and corporate income grew by 20 percent, all of which were much higher than the growth of Chinese residents’ income at 14.1 percent. The low increase in the growth of residents’ income resulted directly in the downturn in domestic consumption, leading to unbalanced and unsustainable economic development in China.

Source: Radio Free Asia, September 18, 2012
http://www.rfa.org/mandarin/yataibaodao/gdp-09182012165542.html

Briefings | | |   Economy/Resources