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Huanqiu Editorial: Americans Better Be Clear that the South China Sea Is Not the Caribbean

Huanqiu (The Global Times, a publication under Xinhua) published an editorial following the U.S. State Department’s statement that publicly criticized China’s establishment of Sansha City and its creation of a new garrison in the South China Sea. The article stated, “It is well within China’s expectation that the U.S. is more and more obviously adopting a biased policy on the South China Sea issue that favors the Philippines and Vietnam. When the Philippines and Vietnam are more active, the U.S. remains relatively ‘neutral.’ When the Chinese take a little initiative, the U.S. immediately gives up its ‘neutral’ stand and jumps right in to ‘balance’ China. In general, the attitude of the U.S.  follows such a pattern.”

The article commented, “It is a fact that the U.S. is influential in the South China Sea, but it is also obvious that the U.S. cannot do what it wants. The Philippines and Vietnam has been very provocative and presumptuous toward China recently. It has already seen the potential impact of the United States. The era when the U.S. can blow up a storm in the South China Sea just by giving a mere hint is actually almost over.”

“The U.S. now openly condemns China’s establishment of Sansha City. It no longer has much influence. The U.S. may come up with sharper criticism in the future, but this will gradually be no more than trash talk. The actual impact (of the U.S.) on the South China Sea is decreasing.”

The article warned, “The South China Sea is not the Caribbean. Americans should be sober minded.”

Source: Huanqiu, August 6, 2012
http://opinion.huanqiu.com/1152/2012-08/2990673.html
http://news.xinhuanet.com/world/2012-08/06/c_123537467.htm

Study Times on Regulating Microblogs in China

On August 6, 2012, Study Times published an article discussing the challenges brought about by microblogs and the strategies the authorities should use to deal with microblogs in the event of a crisis. In China, 96% of Internet users know how use microblogs to check and release information and to post comments about large and sudden incidents. The article suggested strategies to strengthen crisis management and deal with the effects of microblogs in the event of a crisis:

  1. Constantly collect information on the Internet and submit the feedback to the relevant departments quickly so as to resolve any microblog crisis at the initial stage.
  2. The government should release authoritative news in a timely manner, using touching language, following the principle of "quickly report the facts, cautiously report the reasons, and then release follow-up information later.”
  3. Guide and regulate public opinion by spreading filtered and selected views.
  4. Stop any “rumors” from spreading and use law enforcement to regulate the Internet effectively.

Source: Study Times, August 6, 2012
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2012/08/06/05/05_34.htm

SASAC: No More Expansion – China’s Central Enterprises Situation Is Grim

China’s State-owned Assets Supervision and Administration Commission of the State Council (SASAC) recently held an internal meeting regarding the grim situation that state-owned central enterprises are facing. “Any investments involving large-scale expansion must stop,” said the person in charge on the meeting. “When the economic situation is not good, state-owned central enterprises must not only watch their own cash flow but also the flow of capital for their customers, both upstream and downstream.”

The SASAC has publicly warned central enterprises several times to get ready for “winter.” As of today, 36 central enterprises’ listed concept-class companies have publicized their 2012 reports. Out from these 36 companies, the net profits of 19 companies have decreased. This means that 52.8% of the central enterprises have shown reduced profits. In the first half of 2012, 94 out of 139 central enterprises continued to lose money or lost money for the first time, which means that 67.6% of China’s central enterprise companies are losing money. The deteriorated central enterprise companies are mainly in the manufacturing, electricity, petrochemical, transportation, and real estate industries.

Source: China Review News, August 7, 2012
http://www.zhgpl.com/doc/1021/9/1/5/102191591.html?coluid=10&kindid=253&docid=102191591&mdate=0807092907

China’s Public Security Bureau Stops Issuing Visas to Potential Dance Competition Participants

The upcoming Asia-Pacific region preliminaries for the 5th "NTD’s 2012 International Classical Chinese Dance Competition," usually held in New York, will be held in Hong Kong on August 18, 2012, in order to accommodate potential participants from mainland China. The Chinese Communist regime has repeatedly threatened dancers not to participate in the competition. Recently, China’s public security bureau has denied visas to mainland Chinese dancers who want to go to Hong Kong.

(Editor: Some involved with the NTD Chinese Dance competition are Falun Gong practitioners.)

Source: Epoch Times, August 8, 2012
http://www.epochtimes.com/gb/12/8/8/n3654016.htm

Qiu Shi: Establish and Implement the Chinese Gold Strategy

Qiu Shi, a magazine by the CCP Central Committee, recently published an article discussing China’s strategy on gold. The author emphasized the importance of establishing and implementing a national strategy: (1) China must recognize gold’s strategic value and its position as a wealth reserve tool; (2) Domestic gold mining and manufacturing should be considered as the primary approach in developing China’s gold reserves; (3) The government should actively invest in China’s gold industry and push the development of the domestic gold market. 
The author suggested that gold plays a strong role in enhancing social and financial stability. China has been the world’s largest gold producer since the year 2007. The article concluded by calling for a comprehensive national gold strategy to be designed and used to guide China into becoming a stronger country.
Source: Qiu Shi, August 1, 2012
http://www.qstheory.cn/zxdk/2012/201215/201207/t20120727_172665.htm

CRN: Local Governments’ 4 Trillion Move May Be Disastrous

China Review News (CRN) recently published a review on the phenomenon of many of China’s local governments coming up with huge investment plans. The scale of these government investments are comparable to the central government managed “4 trillion” (in Chinese RMB) stimulus package that started in 2008. An example is Changsha, the capital city of Hunan Province, which just announced an investment plan of RMB 800 billion. The review pointed out that the income of typical Chinese local governments has declined significantly in the past year due to the adjustments that the central government has made in the area of real estate investments. With the apparent decline in the overall Chinese economy, the central government is loosening up currency and financial policies. However, the review expressed the belief that, if many local governments make un-coordinated investments, it may result in disastrous economic damage. It would be a better idea to manage market demand and stimulate private investments in the right direction.
Source: China Review News, August 2, 2012
http://www.zhgpl.com/doc/1021/8/6/6/102186619.html?coluid=53&kindid=0&docid=102186619&mdate=0802072701

CRN: China’s Real Challenges

China Review News (CRN) recently published a commentary suggesting that real challenges lie ahead for China over the next five to ten years. The author expressed the belief that the true issues are not the international environment or military conflicts. Instead, the true issues are domestic social reforms, the financial system, and the Internet. In five to ten years, China will approach the point where the size of its economy is close to that of the United States and China’s power in the areas of science and the military will enjoy major improvements. The author suggested that the U.S. will do the following to maintain its leadership: attack the Chinese currency; control the Chinese financial system by participating in China’s reforms; push “Internet freedom” and promote democracy; support human rights lawyers, underground religions, and political opposition; agitate among China’s allies and neighboring countries; and establish pro-US international rules in a number of areas. 
Source: China Review News, August 2, 2012
http://www.zhgpl.com/doc/1021/8/6/6/102186604.html?coluid=53&kindid=0&docid=102186604&mdate=0802071037

Wuhan Municipal Newspaper Urges the Government to Regain Legitimacy and the People’s Hearts

On July 30, 2012, Sina carried a commentary originally published by Changjiang Daily, the official newspaper of the Wuhan Municipal Committee, titled, “It Is Urgent to Regain Legitimacy and the People’s Hearts.” The commentary attributed the cause of China’s current social conflicts to how the government has mishandled incidents. It urged the government to start immediately to repair the damage and regain the hearts of the people before it is too late.

According to the commentary, the increased number of mass riots and their intensity have reached a level that has never been seen before. The core cause is the government’s misconduct and its attitude when dealing with the situations. The government has chosen either to neglect the situation or handle the case with arrogance or a rude attitude. Some have tried to use money to reach a settlement.

The commentary stated that the measures that the government has used in handling situations have worn down its legitimacy and caused it to distance itself from the people. “They are avoiding the conflicts and increasing the intensity of conflicts with society. As a matter of fact they are wearing out their legitimacy and distancing themselves from the people.” The commentary further stated, “Economic achievement does not equate with or replace the legitimacy of the government. The major historical mission is how can the government rebuild its legitimacy and authority.” The commentary warned that the time to take action is not unlimited.

Source: Sina, July 30, 2012
http://news.sina.com.cn/pl/2012-07-31/081924875288.shtml