Chinascope – Page 927

International Herald Leader: Within 10 Years, the U.S. Dollar Will Completely Collapse

On September 6, 2012, the International Herald Leader, a newspaper under Xinhua News Agency, published an article titled “Within 10 Years, the U.S. Dollar Will Completely Collapse.” According to the article, “The so-called economic recovery in the United States, which is based on an increase in the national debt, is a false recovery.” The article predicts that “China’s economy will overtake the U.S. economy and become the world’s largest economy. The internationalization of the Chinese yuan will further improve Chinese people’s living standards.”

Source: International Herald Leader, September 6, 2012
http://ihl.cankaoxiaoxi.com/2012/0906/89118.shtml

Briefings | | September 12, 2012 | US-China Relations

People’s Daily: HSBC August Chinese Manufacturing PMI Suffered a Big Drop

People’s Daily recently reported that the August PMI (Purchasing Managers Index) number for China’s manufacturing industry dropped to 47.6, down from 49.3 in July. The number of new orders for exports dropped to its lowest level in nine months. Average invested cost was at its lowest point for the last 41 months. The level of inventory was the highest its been since HSBC started collecting PMI data. Over the the last 10 consecutive months, China’s manufacturing sector has declined in overall performance. For the past four months, the demand for raw materials has weakened and average supplier preparation time has shown improvement. According to the HSBC report, the main cause of the slowdown in the manufacturing industry is the low volume of new orders. PMI is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.

Source: People’s Daily, September 3, 2012

http://finance.people.com.cn/money/n/2012/0903/c42877-18903596.html

Briefings | | September 11, 2012 | Economy/Resources

Study Times: Strengthening Control over Cyberspace

Study Times, a magazine by the Chinese Communist Party Central Party School, recently published an article on the importance of control over cyberspace. The article started by emphasizing the damage that the WikiLeak incident caused, which demonstrated the significant impact that cyberspace can have on real human society. Then the author quoted the Obama administration’s strategy of saying that cyberspace is a nation’s important asset and key infrastructure. Based on statistics release by CNNIC (China Internet Network Information Center), China had 513 million netizens by the end of 2011. This represented a 38.3% Internet coverage of the Chinese population. According to CNCERT (National Computer network Emergency Response technical Team), in the year 2011, there were 47,000 foreign Trojan/Botnet control servers that participated in controlling 8.9 million Chinese hosts. The author suggested that China needs to start building a strong information infrastructure and that the government should lead this effort by establishing an administrative structure with clear responsibilities. The author pointed out that the United States and its partners in the West control all of the core software and hardware technologies. China should focus the use of its resources on changing this critical situation. Domestic talent-building as well as improving information management laws are also important tasks.

Source: Study Times, September 3, 2012

http://www.studytimes.com.cn:9999/epaper/xxsb/html/2012/09/03/07/07_37.htm

Briefings | | September 11, 2012 | Information/Technology

CRN: China’s Top 500 Make Low Profits

China Review News (CRN) recently published a financial commentary that analyzed why profits among the top 500 Chinese enterprises have declined considerably. The commentary started by comparing the ROE (Return On Equity, which measures a firm’s efficiency at generating profits from every unit of shareholders’ equity) of China’s Top 500 enterprises with the USA500, finding it was 2.1 percent less. China’s top 500 companies have high total sales, but are very low on the profit side. The commentator expressed the belief that this is related to the fact that 310 out of China’s top 500 are state-owned and the top 30 are all large state-owned enterprises. China’s top 10 are either state-owned banks or companies that enjoy monopoly power. Most of these companies are not interested in promoting, innovation, or in cutting costs. Instead, they focus on making sure that government policies are biased in their favor. With the downturn of both the global and the domestic markets, labor costs, leasing costs, and resource costs are all rising. The growth pattern that the China 500 follow is no longer applicable for generating a profit. The commentary called for a “reform of the system.”

Source: China Review News, September 7, 2012

http://www.zhgpl.com/doc/1022/2/5/8/102225811.html?coluid=53&kindid=0&docid=102225811&mdate=0907072127

Briefings | | September 11, 2012 | Economy/Resources

The Chinese People Don’t Just Distrust the Government; They Take Action

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Chinascope recently published a commentary written by an expert on China issues, Dr. Shizhong Chen, titled, “The Mirror of China’s Failing State.” Dr. Chen observed that what the Chinese government claimed to be a ‘once-in-60-years’ rainstorm in Beijing has led the Western media to start looking beyond the China’s economic illusion to see the real China: an economic prosperity “at the expense of internal necessities that include infrastructure, education, and healthcare.” [1]

Not only did the Beijing rainstorm reveal the lack of infrastructure development in China, but it also showed the world that people in China are losing trust in China’s government. Moreover, they are taking action, and not just talking, to express their distrust.

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Analyses | | September 10, 2012 | Opinion

Guangdong Provincial Government Is Building Databases of Overseas Chinese

The United Front Work Department of the Communist Party carried an article originally published by Xinhua stating that the Guangdong Provincial government plans to build four databases on oversea’s Chinese in order to enhance the communication with the overseas Chinese and provide better services for the overseas Chinese who have returned to China (called haigui). The four categories for the databases include professionals and specialists in key areas; business groups; overseas Chinese currently living in Guangdong, and overseas Chinese currently investing in Guangdong.

According to Zhen Jianming, Deputy Director of the Guangdong Foreign and Overseas Chinese Affairs Office, his office has established connections with over 100 overseas professional groups. They have listed 25 organizations in seven countries as the key contacts and have established collaboration projects with 15 of them. Since 2011, the Guangdong Foreign and Overseas Chinese Affairs Office has invited over 100 high level professionals from nine professional organizations to Guangdong and reached over 20 agreements with them for scientific collaboration or agreements on the intent to collaborate.

Source: The United Front Work Department of the Communist Party, September 7, 2012
http://www.zytzb.cn/publicfiles/business/htmlfiles/tzb2010/S1815/201209/731224.html

Briefings | | September 10, 2012 | Geo-Strategic Trend

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