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Xinhua: Vietnam Welcomes Russia Back to Cam Ranh Bay

Xinhua recently reported on Vietnamese President Zhang Jin Chong’s 5-day visit to Russia. In a press conference, Zhang told the Russian media that Vietnam welcomes Russia to set up a vessel repair center in Cam Ranh Bay. Russian President Putin agreed to provide Vietnam with a US$10 billion loan, of which US$8 billion will be for a nuclear power station construction project. The two presidents also agreed that the two countries should eventually establish a partnership in the area of defense. Zhang emphasized that the services provided to Russia at Cam Ranh Bay will not have a military orientation. The Russian Navy Commander in Chief confirmed that there were talks among Russia, Cuba, Seychelles, and Vietnam to build “technical support centers.” Vietnam recently also agreed on a joint-venture with Russia to develop oil fields in the South China Sea. In the 1980s, Cam Ranh Bay was the largest Russian military base outside of Russia. 
Source: Xinhua, July 30, 2012
http://news.xinhuanet.com/world/2012-07/30/c_112563638.htm

Minimum Wage Increase Slows Down in 2012

According to the Ministry of Human Resources and Social Security, at the end of June, the minimum wage was adjusted upwards in 16 provinces and cities. The increase averaged 19.7 percent over 2011. Currently Shen Zhen has the highest monthly minimum wage of 1500 yuan per month, while Beijing has the highest minimum hourly rate of 14 yuan per hour.

According to Su Hainan of the Committee on Labor Compensation of China’s Labor Association, the increase in 2012 was less than the 22 percent increase of 2011 over 2010, but it was still within expectations. Su said, “The standard of the minimum wage is a double edged sword. If it increases too slowly, it will affect worker’s basic living standards, but if it increases too fast, it will have a negative effect on the economy, especially now that we have a labor surplus compared to market demand.”

Currently the standard minimum wage varies greatly between regions; the minimum wage is still determined by each local region. Su observed, “In the long term, the fundamental solution is to resolve the unbalanced economic development between regions by investing more and promoting economic development in those regions that are behind, such as the middle western region.”

Source: Xinhua, July 29, 2012
http://news.xinhuanet.com/politics/2012-07/29/c_123487285.htm

Xinhua: Non-Party Organizations Applaud Key Messages from Hu’s Recent Speech

On July 23, 2012, Hu Jintao gave a  speech at an event held for provincial department level leaders. Xinhua carried an article reporting on the feedback that the democratic parties and members of non-party organizations in China gave after studying the key messages in the speech. The article asserted that those organizations put their trust in Hu’s leadership in leading the Chinese people to overcome both the serious challenges they face and the complicated and ever changing international environment. The article also reported that these organizations applauded Hu’s direction on walking the socialist development path with Chinese characteristics and the scientific development concept and vowed to be united around the leadership head of the Chinese Communist Party.

Source: Xinhua, July 28, 2012
http://news.xinhuanet.com/politics/2012-07/28/c_112557822.htm

RFA: Communist Party Branches in Foreign Enterprises – A New Trend

China Economic Weekly carried an article that was originally from a People’s Daily news report. The report stated that it has become a trend for Communist Party branches to establish themselves in foreign investment enterprises in China. It started with the establishment of a Party branch in Wal-Mart in 2006. After that, more and more foreign enterprises have embraced the trend. Radio Free Asia interviewed Tang Jitian, a lawyer in Beijing on his reaction to the article.

According to Tang Jitian, on the one hand, this is a natural reaction for the Party; it is trying to exercise a tighter grip as it is losing control of society. On the other hand, for foreign companies to allow the establishment of Party branches within the company shows that they have chosen to compromise and give in to the hidden rules because they want to survive in China. “… once these foreign companies get deeply involved in doing business in China, they soon realize that, on the surface, they are dealing with some administrative or legal entities. However, the entity that has the real power and is in control is the Party, especially key personnel as well as different Party organizations.”

Source: Radio Free Asia, July 17, 2012
http://www.rfa.org/mandarin/yataibaodao/sd-07172012182534.html

Hu Jintao: the Party Faces Unprecedented Challenges

On July 23, 2012, Hu Jintao spoke at the opening of a special symposium held for provincial Party leaders. The entire Politburo, including all nine members, attended the opening. In his remarks, Hu stated, “We face unprecedented opportunities as well as unprecedented challenges.” He further indicated that there have been great changes within the Party. “The external risks are unprecedented.” There are many urgent problems that need to be solved.

Source: Xinhua, July 23, 2012
http://news.xinhuanet.com/video/2012-07/23/c_123457270.htm

Wife of Bo Xilai Charged with Heywood Murder

On July 26, 2012, Xinhua reported that the Hefei Municipal Procuratorate (the state prosecutor’s office) in Anhui Province charged Gu Kailai, the wife of Politburo member Bo Xilai, along with a family aide named Zhang, with intentional homicide in the case of the deceased British businessman, Neil Heywood. The two were charged at the Hefei Intermediate People’s Court after “prosecutors interrogated them and spoke to their defense team.” Xinhua stated that the investigation showed that Gu and Zhang poisoned Heywood due to a business conflict between Gu and Heywood that also involved Gu’s son. Gu believed Heywood was threatening her son. "The facts of the two defendants’ crime are clear and the evidence is irrefutable and substantial. Therefore, the two defendants should be charged with intentional homicide and held accountable for their criminal liability."

Source: Xinhua, July 26, 2012
http://news.xinhuanet.com/legal/2012-07/26/c_112544655.htm

Xinhua: Sansha City Is Not a Flower Trellis on Show for the Philippines and Vietnam

Huanqiu, a publication under Xinhua, published a commentary on the Philippines and Vietnam’s protests following the inaugural ceremony for Sansha City, Hainan Province. The commentary observed that Chinese media essentially ignored the two countries’ protests. The Chinese mentality, in general, is "I will enjoy going my own way no matter what you do or feel.”

The commentary stated, “[China as] a big country should act as such. There is no need to practice verbal sparring with the Philippines and Vietnam. Action is our real language. What China’s position on the South China Sea means and how the Philippines and Vietnam should deal with China in the South China Sea should all be understood from our actions, in addition to what we tell them.”

“The Philippines and Vietnam’s responses are not worthy of our real-time tracking. If they have a general knowledge of what’s going on, that is sufficient. Sansha City should seek its own development, becoming a real prefectural city, not a flower trellis that is on show for the Philippines and Vietnam."

“Regarding the friction and conflict in East Asia as well as in the world, China should also gradually change from asking others what to do to actively taking the initiative on our own. That way, we would not have much of a burden and would be much more relaxed.”

Source: Huanqiu, July 25, 2012.
http://world.huanqiu.com/observation/2012-07/2947155.html

Beijing Police Chief: Strike Hard against Online Political Rumors and Attacks on the Current Regime

Between the end of July and August 31, 2012, Beijing City will launch a summer Internet environment remediation campaign. According to Fu Zhenghua, the head of Beijing’s Public Security Bureau, actions involving use of the Internet to traffic prohibited goods, to manufacture and spread political rumors, and to attack the Party and government leaders as well as the current regime will be subject to a harsh crackdown.

The police force has set up Internet law enforcement accounts at 239 major Beijing based websites. Reportedly, 3,916 web related violations have been uncovered and 5,007 suspects have been arrested. Fu also emphasized that websites that regularly disseminate harmful information will be put on a “black list,” and that 110  reporting icons (phone numbers for reporting to the police) should be set up on major microblogging sites,

Source: Jinghua Daily, reprinted on Xinhua, July 26, 2012
http://news.xinhuanet.com/legal/2012-07/26/c_123469957.htm