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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 Faces an Irreversible Population Crisis

On July 10, 2012, Wang Feng, the Director of the Brookings-Tsinghua Center, spoke at the 2012 Future China Global Forum that was held in Singapore. At the forum, Wang stated that China is trapped in a severe, irreversible demographic crisis.

According to Wang, the current ratio between the number of working-age people (age 20 to 59) and older people (60 and over) is 5:1. Wang predicted that the ratio will fall to 2:1 by 2030. More and more elderly families will have only one child. This will not only impact the labor market; it also will also have a political impact. It will require institutional innovation. Wang observed that, although investment in large projects and in infrastructure may bring short term results, the more important and urgent need is for improvements in public health-care and the social security system and for pressing ahead with institutional reform.

Source: Caixin, July 10, 2012
http://economy.caixin.com/2012-07-10/100409420.html

Briefings | | |   Social Stability

Qiushi: Six Challenges to the Development of China’s Ideology

Qiushi published an article that discussed the importance of ideology in the international contest. The article stated, “Firmly controlling a nation’s ideological position is not only its core national interest, but is also an important bargaining chip in the international contest. Today’s world has left ‘the era of violence and money control’ and ‘nuclear bombs and rockets’ have moved to the back of the stage. Competing for ‘soft power,’ including the right to determine what language is spoken, controlling the Internet, issuing information, establishing the rules, and leading the cultural trend, have become the focus of competition for comprehensive national strength. In this ‘war without smoke,’ between all participating countries and based on international and domestic pressure, China has gained the forefront in the ideology struggle. China’s ideological development faces many challenges. The article listed the following challenges:

1. The culture infiltration of Western hostile forces threatens the security of China’s ideology. 2. Different thoughts interfere with the recognition of China’s mainstream ideology. 3. The collapse of the Soviet Union and the Eastern bloc have weakened the belief in China’s mainstream ideology. 4. Development and modernization as the main theme and goal have diluted the confrontation among different ideologies. 5. Multi-value oriented development has impacted China’s mainstream ideology. 6. Information being networked is challenging the ability to control ideology.

Source: Qiushi, July issue, 2012
http://www.qstheory.cn/zz/zgtsshzyll/201207/t20120705_168290.htm

Briefings | | |   Government/Politics

Newly Appointed Police Chiefs Receive Training on Maintaining Stability

Newly appointed police chiefs from county and city-level public security bureaus nationwide are receiving training in how to improve their law enforcement capabilities and how to maintaining stability locally.

The Ministry of Public Security is holding the training seminars in Beijing from June 26 until July 31, 2012. The seminars will train 1,400 local police chiefs who were appointed after 2010. This is the third year, the first and second being 2009 and 2010, that the ministry has run these seminars. More than 1,400 new grass-roots police chiefs were trained in the first two years.

Resource:  China Review News, July 9, 2012
http://www.zhgpl.com/doc/1021/6/2/3/102162338.html?coluid=45&kindid=0&docid=102162338&mdate=0709085529

Briefings | | |   Social Stability

China Review News: After 30 Years of Rapid Growth, China Faces an Economic Correction

China’s rapid economic growth has relied on the low cost of capital, the low cost of labor, and low environmental costs. However, the “three low economic costs” no longer exist in China. It is difficult to manipulate the financial market to maintain the low cost of capital. Labor costs are increasing. Former Foxconn employees’ continuously committing suicide is an extreme reaction to employees long working hours and low pay. The demand for environmental protection is now high across the country. The protest in Shifang is the most recent example.

From 2007 to 2011, one quarter of China’s GDP came from net exportation, real estate development, and the automotive industry. However, in 2012, due to internal and external factors, net exportation, real estate development, and the automotive industry are all slowing down. After nearly 30 years of rapid growth, China has to face a period of economic correction with low economic growth and welfare.

Source: China Review News, July 9, 2012
http://www.zhgpl.com/doc/1021/6/2/2/102162285.html?coluid=53&kindid=0&docid=102162285&mdate=0709071414

Briefings | | |   Economy/Resources

China Bans the Dissemination of Uncensored Online Videos and Micro-Films on the Internet

China’s State Administration of Radio, Film, and Television (SARFT) has issued new rules to ban the dissemination of uncensored online videos and micro-films on the Internet. According to the new rules: 1) Webmasters must be responsible for censoring all online videos and micro films before broadcasting any of them; 2) Associations of Internet audio-visual programs must self-regulate their work; 3) Government administrative departments have the authority to manage all Internet entities, including issuing permits to them or closing them down .

Source: China Review News, July 9, 2012
http://www.zhgpl.com/doc/1021/6/3/2/102163256.html?coluid=45&kindid=0&docid=102163256&mdate=0709220610

Briefings | | |   Government/Politics

Xinhua: Wen Jiabao Emphasized the Continuation of Price Control for Housing

Xinhua recently reported that Chinese Premier Wen Jiabao spoke about the housing market during his visit to Jiangsu Province. Wen stated that the government initiated housing market adjustment has reached a key stage and that “the task remains difficult.” He emphasized that it is a long term government policy to suppress speculative investments in the housing market. He also suggested that information regarding the housing market is a bit out of control right now and the general public is still worried about a potential rebound in prices. Wen asked the local governments not to implement new policies that would move the market in a different direction. He also asked the suppliers to adjust product strategies to offer more regular lower-priced commercial real estate in the general market. During his visit, Wen also mentioned the planned reform of the real estate tax system, which is considered part of the control system for the future housing market.
Source: Xinhua, July 7, 2012
http://news.xinhuanet.com/politics/2012-07/07/c_112383129.htm
Briefings | | |   Economy/Resources

SecuTimes: HSBC June PMI Number Reached a 7 Months Low

SecuTimes recently reported that the HSBC released the final June PMI (Purchasing Managers Index) number for the Chinese manufacturing sector, showing it to be 48.2, the lowest in the past seven months. Experts suggested that the number indicates that there has been a continuous decline in the Chinese economy. Some also suggested that this could be part of the process of bottoming out and there might be a small rebound in the third quarter. The National Bureau of Statistics released a similar PMI number, showing it to be 50.2, which was also a 7 month low. PMI is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: SecuTimes, July 3, 2012
http://kuaixun.stcn.com/content/2012-07/03/content_6119446.htm
Briefings | | |   Economy/Resources

CRN: Nearly 70% of the People Cannot Afford Housing

China Review News (CRN) recently reported on a research survey on the housing market. The nationwide survey covered 23 provinces and 4 municipalities that are directly under the central government. The results were that 66% of the people surveyed said that, given the current market prices, they still could not afford housing. Near 60% said they believed that this year is not the right time to buy real estate. The report also showed that the percentages were highly consistent across different regions. However, there was still a high demand nationwide for commercially available real estate. It seemed, however, that this high demand has not turned into actual purchases. After two years of strict government price control of the housing market, 35% of the people surveyed believe that housing prices are “stabilizing.” Meanwhile 29% of those surveyed still believe that prices are “going up.”
Source: China Review News, July 6, 2012
http://www.zhgpl.com/doc/1021/6/0/9/102160963.html?coluid=10&kindid=258&docid=102160963&mdate=0706173845
Briefings | | |   Economy/Resources