Chinascope – Page 939

China Formally Establishes Sansha City on Yongxing Island of Xisha, Hainan Province

On July 24, 2012, an inaugural ceremony was held for the opening of Sansha City. The ceremony took place on the Island of Yongxing, one of the Xisha Islands (called the Paracel Islands in Vietnam), Hainan Province. Sansha officially became China’s 285th prefectural level city, the southernmost tip prefectural city with the least population, the least land area, and the largest total area under its jurisdiction.

Hainan Provincial Party Secretary Luo Baoming spoke at the ceremony, saying that the CPC Central Committee and State Council’s decision to establish Shansha City was to carry out the administration, development, and protection of the Xisha Islands, the Dongsha Islands (also called the Pratas Islands in Taiwan), and the Nansha Islands (also called the Spratly Islands); and strive to make Sansha City an important base for maintaining South China Sea sovereignty and resource development services.

Source: People’s Daily, July 25, 2012
http://politics.people.com.cn/GB/n/2012/0725/c1001-18590367.html

Briefings | | July 26, 2012 | Geo-Strategic Trend

Huanqiu: What Has Obama Done in Asia?

Huanqiu published a commentary on Obama’s activities in Asia over the past four years. It stated that, in less than three years, the U.S. has completed the initial phase of the formulation, promotion, and implementation of transferring its strategic priority to Asia and the Pacific region. The commentary contends, however, that such a move has destabilized the region. “The Obama administration has implemented a two-faced policy of exchanges and cooperation, along with deterrence and containment.” It has carried out “frequent military moves in order to quickly restrain China. The U.S. politicians have politicized trade disputes and those pertaining to cultural exchanges. Political biases in the U.S. have entangled or destroyed potential opportunities for cooperation.” The commentary further cited examples of the U.S. activities that have had a destabilizing effect, such as “sowing discord and forming gangs” among Asian countries and increasing the U.S. military presence in Australia.

Source: Huanqiu, July 24, 2012
http://opinion.huanqiu.com/1152/2012-07/2944180.html

Briefings | | July 26, 2012 | US-China Relations

Qiushi: Beware of the Real Economy Being Virtualized

On July 20, 2012, Qiushi, a journal of the Central Committee of the Chinese Communist Party (CCP), reprinted an article from the China Jinggangshan Executive Leadership Academy Journal titled “Beware of the Real Economy Being Virtualized.” The real economy, which refers to the production and service sectors, is declining in China due to higher costs (of goods and labor), heavy taxes, overcapacity, limited investment, financing problems, and a lack of innovation.

However, the virtual economy is overly booming in China due to the huge returns from real estate, the stock market, the futures market, coal resources, antiques, art works, financial products, loan sharking, and the speculative markets for some agricultural products. Such a phenomenon poses a significant potential risk for sustainable economic development in China. In analyzing the main reasons behind the virtualization of the real economy, the article’s writer proposed some solutions for improvement.

Source: Qiushi, July 20, 2012
http://www.qstheory.cn/jj/xsdt/201207/t20120723_171534.htm

Briefings | | July 25, 2012 | Economy/Resources

Guangdong Security Chief: Maintain Stability by Protecting the Rights of the People

Zhu Mingguo, the Guangdong Provincial Political and Legislative Committee Secretary, recently delivered a speech at a conference of the Guangdong political and legislative system leading cadres. Zhu emphasized the protection of the people’s rights and the engagement of a full negotiation with the people in stability maintenance work. Zhu expressed his preference for maintaining stability in a harmonious way.

Source: China Review News, July 18, 2012
http://www.zhgpl.com/doc/1021/7/0/7/102170729.html?coluid=151&kindid=0&docid=102170729&mdate=0718091843

Briefings | | July 25, 2012 | Government/Politics

Xinhua: Only One China-Concept IPO in U.S. Stock Market

Xinhua recently reported that, in the first half of this year, only one Chinese company had its IPO in the U.S. stock market. That one stock dropped below its issuing price on the first day it was offered. It seems the “IPO window” for Chinese stocks will not be open this year. Given this circumstance, 14 Chinese companies went through the privatization process in order to withdraw from the U.S. stock market. There are two primary reasons for this situation: 1) The poor performance of the global economy has resulted in U.S investors having a conservative attitude; 2) The China-Concept stocks are still suffering from their poor credit background.

Source: Xinhua, July 21, 2012

http://news.xinhuanet.com/finance/2012-07/21/c_123450036.htm

Briefings | | July 24, 2012 | US-China Relations

National Bureau of Statistics: Housing Market Still at Key Crossroads

China Review News (CRN) recently reported that the National Bureau of Statistics released its June report on the housing market. The report showed that 25 out of 70 major and mid-sized Chinese cities reported housing price increases. That number is 19 more than the number from May. However, most of the cities have lower prices than last year. For example, for new real estate, Beijing, Shanghai, Guangzhou, and Shenzhen fell 1.3 percent, 1.9 percent, 1.6 percent, and 2.5 percent, respectively. Experts suggested that there are 3 reasons of the recent June price rebound: 1) Lower interest rates (the central bank lowered the interest rate twice in one month); 2) Worries in the market of the possibility of a big price rebound; 3) Some sellers obtained good sales results after lowering prices earlier and are now marking the prices up. It is widely believed that the government imposed market adjustments are still at a critical stage before housing prices return to a reasonable level.

Source: China Review News, July 18, 2012

http://www.zhgpl.com/doc/1021/7/1/3/102171322.html?coluid=45&kindid=0&docid=102171322&mdate=0718160342

Briefings | | July 24, 2012 | Economy/Resources

Premier Wen Jiabao Warns of a Tougher Labor Market Ahead

On July 17, 2012, the National Work Force Employment Conference was held in the Great Hall of the People in Beijing. Premier Wen Jiabao attended the conference and spoke on labor issues. He stressed the importance of creating job opportunities and noted that it is a top priority to protect and secure people’s livelihoods. Wen asked all levels of government bodies to gain a better understanding of the urgency. He also recognized that the current and future job market faces more complicated and serious challenges and said that a bigger effort was needed to create more job opportunities.

According to official statistics, in urban and rural areas, a total of 98 million new employment positions were created between 2003 to 2011. Among those 40 million were for college graduates, 30 million were for workers from state-owned enterprises who had been laid off, and 28 million were for laid off workforce who had re-entered the work force. By the end of 2011, the total number of peasant workers had reached 250 million, up by 139 million from 2003. Each year, there are a total 12 million professional workers taking middle to advanced vocational education classes and 150 million taking training courses.

Source: Xinhua, July 18, 2012
http://news.xinhuanet.com/2012-07/17/c_112460838.htm

Briefings | | July 23, 2012 | Economy/Resources

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