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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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China Economic Weekly: Corrupt Officials Fleeing Overseas

Last week a Chinese airline was called back to Beijing after 7 hours in the air flying to New York. Internet rumors had it that a politburo level official, who was fleeing China, was on the plane. The rumors prompted current references to information that had been published about officials fleeing the country.

China Economic Weekly under the People’s Daily featured an article in its 22nd Issue of 2012 on Communist Party officials fleeing China with large amounts of money. The article cited statistics released last year by China’s Academy of Social Science. It stated that 16,000 to 18,000 Party officials have fled the country since the mid 1990s, taking 800 billion yuan with them. For example, between August 3 and 5, 2003, on the eve of the effective date of the United Nations Convention against Corruption and the United Nations Convention against Transnational Organized Crime in China, Chinese customs authorities captured over 60 officials trying to exit China. One of them was carrying 600,000 Euros. The two UN conventions became effective in China on September 29, 2003. Within 24 hours, starting on the night of September 30, 2003, 51 Party officials were arrested at airports while trying to flee China.

Sources:
Radio Free Asia, September 5, 2012
http://www.rfa.org/mandarin/yataibaodao/sd-09052012143539.html
China Economic Weekly, June 4, 2012
http://paper.people.com.cn/zgjjzk/html/2012-06/04/content_1064433.htm?div=-1

Briefings | | |   Government/Politics

Huanqiu Editorial: Let Hillary Understand China’s Determination to Defend its Territory

China’s state media Huanqiu published an editorial in which its tone was one of lecturing Hillary Clinton and the U.S. about the recent territorial disputes between China and it’s neighboring countries. Below is a partial translation of the editorial. 

“Before her visit to China, U.S. Secretary of State Hillary Clinton revealed that she was going to talk to China about the South China Sea and other territorial disputes in East Asia. Talk about what? Talk about the sovereign ownership of the Nansha and Diaoyu Islands? Impossible. Talk about the road map to resolve the territorial issues in East Asia? Also impossible. 
“The only thing the two sides can talk about is ‘grand principles,’ but there is not much room for that either. Hillary will probably reiterate the ‘peaceful settlement’ principle, to which China will not object. She will also ask China to involve ASEAN in the talks on the South China Sea issue, but China will never accept (this idea). China’s principle is to deal with the specific disputes with countries in a one-on-one negotiation. (China) has long denied these so-called ‘multilateral negotiations.’  
“There is not much China and America can discuss. In other words, it is useless to talk. The South China Sea and the Diaoyu Islands dispute have now become so prominent. The root cause behind the scenes is the United States. The United States encouraged and instigated countries that have territorial disputes with China with its ‘return to Asia’ to undermine the environment surrounding China’s development and to harass and inhibit China’s rise. 
“China very much hopes that the United States will not intervene in the South China Sea dispute, and very much hopes that the United States truly remains neutral in the Sino-Japanese dispute over the Diaoyu Islands, but no matter how hard and earnest China tries, it is impossible to move Hillary. 
“China and the United States have formed a huge (mutual) distrust. It is unrealistic to break it through conversation. China and the United States judge each other by their actions. 
“Hillary Clinton has been trying to challenge China’s legitimate core interests in the South China Sea and the East China Sea, but she understands that when facing China’s firm determination to safeguard its national interests, the United States needs to choose its most favorable reaction. That’s enough. China should not let the US have any doubts or other misjudgments regarding its determination.” 
Source: Huanqiu, September 5, 2012 
http://mil.huanqiu.com/observation/2012-09/3098896.html
Briefings | | |   US-China Relations

Battling Corruption with Chinese Characteristics

Yang Dacai, 55, head of the Shaanxi Provincial Bureau of Work Safety, was grinning in a photo taken after he arrived at the scene of a deadly traffic accident on Sunday in Yan’an, Shaanxi. Thirty-six people were killed when a bus rammed into a truck carrying a tank of methanol and caught fire. The photo triggered an online wave of criticism, which grew in strength when photos of Yang wearing five different watches, including Rolex, Mont Blanc and Radar, were posted online.

Although Yang defended his innocence claiming he had "used legal income" to buy them, the Party Discipline Inspection Commission of Shaanxi started an investigation. On Thursday, however, new photographs of Yang wearing four other watches appeared online. Experts identified those watches as two Rolexes, a Diagono by Bulgari, and a Constellation by Omega.

In recent years, a number of corrupt officials were uncovered via the Internet. Netizens accidentally ran across another official in Nanjing city who was found to be smoking 1,500-yuan cigarettes. This led to a series of other charges and, in 2009, he was sentenced to 11 years in prison.

Beijing Institute of Technology professor Hu Xingdou said it involves “Chinese characteristics” to use Internet exposure to sack corrupt officials. It is also unfortunate that other conventional weapons against corruption, such as a public declaration of an official’s personal property, checks and balances of power, and monitoring by a free media, are not in place.

Source: Voice of America, September 6, 2012
http://www.voachinese.com/content/chinas-grasping-officials/1500248.html

Briefings | | |   Government/Politics

Chinese Wanda Acquires AMC for US$2.6 Billion

Xinhua reported that the Dalian Wanda Group finalized the acquisition of AMC, thereby becoming the world’s largest cinema owner. Wanda chairman Wang Jianlin made the announcement on September 4, 2012, that it had completed the acquisition, valued at US$2.6 billion, thus making it the largest ever purchase of a U.S. firm by a Chinese corporation. AMC is now a wholly owned subsidiary of Wanda and will receive cash injections of no more than US$500 million per year.

[Editors note: Boxun reported earlier this year that Wang Jianlin had allegedly bribed and helped Bo Xilai, the disgraced former senior Chinese Party official, who was Dalian’s mayor from 1993 to 2000, to climb the political ladder in exchange for lucrative deals. In a statement that Wanda issued in response to the reports, the company said that Wang Jianlin had won the "China Charity Award" and that Chinese Communist Party leaders received him in April.]

Sources:
Xinhua, September 5, 2012
http://news.xinhuanet.com/2012-09/05/c_112959096.htm
Boxun.com, May 5, 2012
http://boxun.com/news/gb/china/2012/05/201205051733.shtml

Briefings | | |   Government/Politics

People’s Daily Warns the U.S. to be Clear-Minded on Three Issues

Jia Xiudong, a distinguished Research Fellow from the China Institute of International Studies, wrote an article for China’s state-run media, People’s Daily. It was a commentary article that sent a message to the U.S. while U.S. Secretary of State Hillary Clinton was visiting China. 

In the commentary, Jia said, “Clinton’s visit seems to be somewhat ‘sudden,’ but considering the importance of Sino-U.S. relations and the urgent need to deal with a series of international and regional issues, it is reasonable for President Obama to send a senior official to visit China at this critical moment during the election year.” “Clinton is not coming here to quarrel with China; nor is China hosting the (American guest) to confront the United States. … Now that (Clinton) comes here to communicate with us, the United States should be very clear on some China-related issues, so as not to waste the opportunity.” 
The article listed the following three (China-related) issues: First, China is is not challenging the current international order. Second, don’t challenge China on issues related to its core interests. (The author listed six core interests, including territory, sovereignty, security, unification, stability, and development.) Third, the U.S. is doing itself more harm than good by sowing discord among China’s neighboring countries. 
Source: People’s Daily, September 5, 2012 
http://world.people.com.cn/n/2012/0905/c1002-18919821.html
Briefings | | |   US-China Relations

China Secutimes: Tishman Speyer, a Leading US Real Estate Firm, Is Fleeing China

On August 31, 2012, China Secutimes published an article titled, “The Largest U.S. Real Estate Firm Is Fleeing China’s Real Estate Market; What Signal It Discloses.” Tishman Speyer, a U.S. real estate developer, is trying to sell its properties in China. The two plots of land that Tishman Speyer currently has for sale are in New Jiangwan in Shanghai. One plot is worth 1.6 billion yuan (US$252 million) and the other one is worth 3.2 billion yuan (US$505 million).

Tishman Speyer started developing real estate in China in 2005. Over the last 7 years, it has expanded its real estate projects in several cities such as Shanghai, Beijing, Tianjin, and Chengdu. However, Tishman Speyer has begun the process of withdrawing from China. According to China Secutimes, “In 2012, foreign capital invested in China’s real estate market will probably decrease by 50 percent,” bringing foreign capital invested in China’s property market to the lowest amount in the last seven years.

Source: China Secutimes, August 31, 2012
http://news.stcn.com/content/2012-08/31/content_6797642.htm

Briefings | | |   Economy/Resources

The Era of High Profits Is Ending

On August 30, 2012, China Reviews published an article titled “China’s Enterprises Have Left the Era of High Profits Far Behind.” From January to July 2012, the accumulated profits of state-owned enterprises (excluding state-owned financial enterprises) fell by 13.2 percent compared to the same period last year. Of these state-owned enterprises, the total accumulated profits of the central state-owned enterprises declined 10.7%, while the total accumulated profits of local state-owned enterprises declined 18.3%. The profits made by China’ state-owned enterprises have decreased in each of the past seven consecutive months.

“At present, an average of nearly 28 percent of China’s manufacturing industry’s capacity remains idle; 35.5 percent of manufacturing enterprises’ capacity utilization is at 75% or less.”

Source: China Reviews, August 30, 2012
http://www.zhgpl.com/doc/1022/1/7/0/102217016.html?coluid=53&kindid=0&docid=102217016&mdate=0830043155

Briefings | | |   Economy/Resources

COSCO Suffers Huge Financial Loss: Nearly 4.9 Billion Yuan in First Half of 2012

According to China Ocean Shipping (Group) Company’s semi-annual report, COSCO lost 4.872 billion yuan in net profit (US$767.3 million) in the first half of 2012, a decline of 79.72 percent compared to last year. COSCO’s loss even exceeds China Aluminum’s huge loss of 3.2 billion yuan. Expecting to lose more money this year, Wei Jiafu, COSCO’s Chairman and CEO, has applied for financial support from the relevant departments in China.

Source: http://www.nbd.com.cn/, August 31, 2012
http://www.nbd.com.cn/articles/2012-08-31/678379.html

Briefings | | |   Economy/Resources