RFA carried a report on China’s growing urbanization and the social implications of the coutryside’s decline.

The report stated that, according to official statistics, in 2011, China had 691 million urban residents, which accounts for 51.27 percent of the total population. This was the first time that the urban population exceeded that of the countryside. The China Urban Development Report of 2012 predicted that, if urbanization grows one percent per year, the urban population will exceed 60 percent by 2020.

Many experts are concerned about the social implications of the growth in the urban population. Agricultural productivity has declined as more and more young and middle aged farmers have left the countryside. Other potential issues include: 1) when farm workers go to the city to work, their family members can’t go with them; 2) farmers do not have title to their land and can’t transfer or sell the land; 3) because of their residential status, farm workers do not have social security.

Source: Radio Free Asia, August 24, 2012
http://www.rfa.org/mandarin/yataibaodao/xql-08242012151753.html

On June 27, Qiushi Theory carried an opinion piece that was originally from Red Flag Manuscript. A research fellow at the Academy of Marxism of the Chinese Academy of Social Sciences wtote the article. The piece stated that, in the current economy, the development of the public sector part of the economy should take precedence over the non-public sector. It also raised the question as to what can be done to bring back the dominance and control of the declining State Owned Enterprises (SOEs).

According to the article, China’s economic model consists of the co-existence of public and non-public ownership. During the Party’s 16th National Congress, a proposal was made to extend an equal effort in developing both the public and non-public sectors of the economy. The author asserted, however, that these efforts can’t carry an equal weight. Rather, the development of the public sector of the economy should take priority over the non-public sector. The author stated, “The public sector of the economy provides the base and the guarantee that the people will be the masters in a socialist country. Allowing the public sector to dominate will determine the characteristics of the socialist system.”

At the end of the article, the author raised the question as to what can be done to protect the dominant status of the public sector of the economy and enable the SOEs to regain their dominant status. The GDP of SOEs dropped from 49.6 percent of total GDP in 1998 to 26.6 percent in 2010, while the GDP of the private sector increased from 3.1 percent to 30.5 percent in the same period and has thus surpassed SOEs.

Source: Qiushi Theory, June 27, 2012
http://www.qstheory.cn/hqwg/2012/201212/201206/t20120627_166477.htm

Epoch Times reported that, many years ago, People’s Daily wrote two articles that show that China acknowledged that it does not owner the Ryukyu Islands. The images of the two People’s Daily articles have been posted on the Chinese Internet and have been spreading rapidly. They are dated January 8, 1953, and March 26, 1958, respectively. The March 26, 1958, People’s Daily editorial quoted Chinese Premier Zhou Enlai as saying, “These islands have never been determined to be separate from Japan in any international agreement.” In the earlier January 8, 1953, commentary, People’s Daily stated that the United States falsified a Beijing Radio news report that said China would not give up its sovereignty over the Ryukyu Islands. People’s Daily commented, “This is clearly a vicious attempt at instigation; it is aimed at exciting the Okinawan people’s strong emotions, as they seek the return of Okinawa to Japan … "

China claims that the Ryukyu Islands do not include the Pinnacle Islands (which are also called the Diaoyu Islands in China and the Senkaku Islands in Japan, and which China now claims). Japan also claims ownership of the Pinnacle Islands. Ownership of the Pinnacle Islands would allow for exclusive oil, mineral, and fishing rights in the surrounding waters.

Source: Epoch Times, August 19, 2012.
http://www.epochtimes.com/gb/12/8/19/n3662869.htm