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Net Profits for Central Government Enterprises Continue to Decline

According to the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC), the net profits for central government enterprises amounted to 253 billion yuan (US$40 billion) for the period from January to April 2012, down 13.2 percent from the same period last year. The previous report, which was for the first quarter of 2012, suggested that the central enterprises showed an end to the growth that had occurred over the last two years and showed a decline for the first time since November of 2009.

The decline was due to a number of external factors such as an increase in the prices of energy, raw materials, and agricultural products. Other external contributors included an excess of administrative layers, poor management skills, and harsh internal competition. Some experts also indicated that the “good old days” of central enterprises were due to the 4 trillion yuan (US$633 billion) from the economic stimulus plan that followed the 2008 economic crisis. It is expected that the net profits will continue to decline in the near future.

Source: China Economy, May 19, 2012
http://economy.gmw.cn/2012-05/19/content_4177619_2.htm

China Objects to 2011 UK Human Rights and Democracy Report on China

Xinhua published an article containing many objections to the 2011 Human Rights and Democracy report that the UK Foreign and Commonwealth Office released. The article said that the report on China was full of unwarranted accusations. At the same time, it ignored the efforts and improvements that the Chinese government and its people have made. It said that the report was politically and ideologically biased and that China and the Chinese people could not accepted it. It also stated that human rights is an internal matter and that no other country has the right to interfere. Finally, it pointed out that not only will the UK government’s action not help the cooperation between the two countries; it will also not benefit China’s human rights advancement.

Source: Xinhua, May 18, 2012
http://news.xinhuanet.com/2012-05/18/c_111978684_2.htm

Ministry of Foreign Affairs Issued Rebuttal to the Annual US China Military Report

The spokesperson for the Ministry of Foreign Affairs said that China opposes the Department of Defense annual report to the U.S. Congress titled, "Military and Security Developments Involving the People’s Republic of China 2012." The spokesperson claimed it made irresponsible remarks and tried to “spread the China military threat theory.” “We ask the U.S. to respect the truth, change its mentality, and stop republishing this kind of report year after year.” 

Source: People’s Daily, May 19, 2012
http://world.people.com.cn/GB/17932389.html

Insights into Political Infighting in China: Reports about Bo Xilai and Zhou Yongkong

[Editor’s Note: The political shake-up started when Wang Lijun made his way to the U.S. Consulate in Chendu in an apparent asylum attempt. Since then, Bo Xilai has been suspended from the Politburo and is being held incommunicado while he is investigated and Zhou Yongkang, one of the nine member Politburo Standing Committee (PSC), was reported as having “handed operational control of the pervasive Chinese security apparatus” over to another. [1] Their connection to Jiang Zemin, the former CCP head, has also surfaced. To help Western readers understand the complexity of the situation and the nuances inherent in the political infighting, Chinascope has collected and translated some reports about Bo, Zhou, and Jiang from Chinese media (both inside and outside of China). A major source for the Chinascope report is the Epoch Times, which, as an independent Chinese media, has done a number of in-depth reports and analyses into the issue. Many other Chinese media are, directly or indirectly, controlled by Beijing and have been unable to do so.]

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Former Party Officials Urge Public Disclosure of Personal Assets

Li Weidong, former President of China Reform Magazine. announced on his miniblog (weibo) that three former senior Party officials had requested that he publish a letter they wrote in February to the Communist Party leaders. In the letter, the three officials stated that all candidates for the Party’s Eighteenth Congress and its committees should and must disclose their personal assets. “Those who dare not disclose their assets and the assets of their families should absolutely not be nominated. We sincerely hope that our Party does not try to dodge this very modest request. If a leader cannot even agree to this request, he should be sent home to sell sweet potatoes. …”

The letter concluded that if the Party leaders continue to hold that time is not ripe for public disclosure of their assets, the leaders would not be able to face and explain (their situation) to the Party members. The three former senior officials had served on the Party’s United Front Work Department and Organization Department. Their letter to the Party leaders was sent in February 2012. As they received no response whatsoever, the three requested Li Weidong to release their letter on his weibo site.

Source: Li Weidong 李伟东, May 16, 2012
http://weibo.taihainet.com/index.php/u/liweidongld

Senior Official: Over 420,000 Officials Disciplined in 30 Years

On May 11, 2012, Cui Hairong, Deputy Director of the National Bureau of Corruption Prevention of China, delivered a speech at the Fifth International Symposium of the Hong Kong Independent Commission against Corruption. In his speech, Cui stated that during the 30 years from 1982 to 2011, as many as 420,000 Party and government officials had been disciplined for violations of Party and government rules of conduct. 462 of those disciplined were either ministers or provincial governors. Over 90 of these high ranking officials were prosecuted on corruption charges. For example, the former Vice Chairman of the People’s Congress, the former Jiangxi Governor, the former Anhui Governor, and the former Director of the State Food and Drug Administration were all executed as a consequence of their acts.

Cui further stated that, in 2011 alone, 4,843 officials were disciplined for abuse of power and corruption and 777 of those were prosecuted.

Source: National Bureau of Corruption Prevention of China, May 14, 2012
http://www.nbcp.gov.cn/article/zlk/ldjh/201205/20120500017247.shtml

Peng Guangqian: Military Force Is Always an Important Means to Safeguard National Sovereignty

On the “Strong Nation Forum” (qiangguo luntan 强国论坛) on the People’s Daily website, military expert, Major General Peng Guangqian, answered questions from Chinese netizens. He expressed the view that military force is always an important means to safeguard national sovereignty. When someone asked: “In what situation would China use military force? Is it correct that China would never use military force no matter what happened?" Peng answered: “When China’s national core interests are violated, and when this cannot be stopped without military intervention, we have no choice but to use force to counterattack. In an era in which hegemonism and power politics still exist and are even progressing, military force is always an important means to safeguard national sovereignty and can never be excluded. We are not absolute pacifists. We cannot beg for peace. Rather we can only use force to obtain peace. If we give up the use of force, we can then only surrender and wait while others partition us at will.

Source: People’s Daily, May 17, 2012
http://military.people.com.cn/GB/17917831.html

China Trains Ministerial-Level Officials from Developing Countries

According to People’s Daily, 14 officials from seven developing countries including Pakistan, Ethiopia, Fiji, and Sudan recently arrived at the China Executive Leadership Academy at Pudong, Shanghai, where they will receive a week long training. The Academy, an agency directly under the Chinese Communist Party’s Central Organization Department, is headed by Department chief Li Yuanchao, who is on the CCP’s 25-member Politburo. Among these students, six are ministerial-level officials. The 14 participants will be lectured about China’s political system, government structure, decision-making process, media, and mass communication. In addition, they will also take field trips to local communities and industrial parks.

Source: People’s Daily, May 17, 2012
http://cpc.people.com.cn/GB/164113/17908572.html