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Will China’s Economy Face Trouble This Summer?

[Editor’s Note: Recently an Internet article titled “SOEs Are Asked to Clear Their Real Estate Inventories. Is a Wave of Unemployment around the Corner for China?” has been widely re-posted on China’s websites. [1] It quoted some unidentified sources and also many state media reports, questioning whether the problems in China’s economy will explode soon. Chinascope could not verify the source of the information. Nevertheless, due to the topic’s relevance, we translated the article so that our readers would be aware of the information and could evaluate it on their own.]

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Oil Extracted from Filthy Animal Remains Processed for Food Use

Legal Daily reported on a new type of illegal food oil that is being used in food preparation. In the past, illegal food oil, which earned the name "gutter oil," was generally extracted from waste oil and leftovers from restaurants. Such gutter oil was then illegally sold to restaurants as food oil. Recently, a new type of “gutter oil” has been circulating in the marketplace and is being used as food oil. It was extracted from filthy and rotten internal animal organs, skin, and parts that slaughterhouses had thrown out. The daily newspaper reported that the Chinese Public Police Ministry cracked down on a large "gutter oil" network, confiscating over 3,200 tons (about 3.5 million pounds) of such “new gutter oil.”

Source: Legal Daily, April 10, 2012
http://www.legaldaily.com.cn/Social_management/content/2012-04/10/content_3485592.htm?node=35360

Qiushi: Widening Disparity of Income with a Very Small Middle Class

Qiushi published a commentary with an analysis of income distribution in China. This analysis showed that the wealth of local residents increased rapidly in a relatively short period of time as the result of economic development and the economic transformation. While relative to other countries, the inequality in the distribution of property of China’s residents is not very great, the inequality is growing very rapidly. … From the wealth distribution chart, [it is clear] the so-called middle class remains very small.”

Source: Qiushi, April 10, 2012
http://www.qstheory.cn/jj/xsdt/201204/t20120410_150235.htm

Chongqing Daily: Will Bo Xilai Still Be a Comrade?

On April 12, 2012, the Chinese Communist Party website reprinted an article from the official Chongqing Daily newspaper, which reported on a Chongqing Municipal Council meeting. At the meeting, Zhang Dejiang, the Chongqing Party Secretary, who is also Vice Premier of the State Council and a member of the Party’s Politburo, urged political allegiance to Hu Jintao. The article stated, “The meeting attendees agreed that Bo’s action (his involvement in the death of Neil Heywood) seriously violated the Party’s discipline and severely damaged the image of our Party and the country. It is very shocking.” That they did not mention the word "comrade" has been viewed as an indication that disciplinary action is anticipated. A day earlier, when reporting the Party’s decision to remove Bo from the Politburo and to start an investigation, Xinhua repeatedly addressed Bo as Comrade Bo Xilai (indicating he had not yet been expelled from the Party).

Sources:
Chongqing Daily reprinted at the Communist Party website, April 12, 2012
http://cpc.people.com.cn/GB/64093/64094/17632810.html
Xinhua, April 11, 2012
http://news.xinhuanet.com/video/2012-04/11/c_122962106.htm

More on Corrupt Officials Who Have Secretly Obtained Foreign Citizenship

People’s Daily published an article revealing more information on corrupt government officials’ new tactics. The article reports that corruption remains rampant and that some corrupt officials have obtained dual nationality in secret [in case the need it]. It summarized the changes in the style, characteristics, and means of corruption that officials have been using: First is mortgaging their power for personal gain. In order to hide the evidence of corruption, some corrupt officials have carefully planned the timing of exchanging power for money, waiting for years before harvesting the fruits of their corrupt acts. Second is illegally collecting wealth indirectly through a third party such as a spouse, child, sex partner, friends, or relatives They have even designated third person to harvest the gains through engaging in business activities. Third is using a more intelligent way to counter anti-corruption. Many officials conducting illegal activities hide their bribes by using the name of a joint investment, money management under trustees, and trading stocks through agents. Fourth is using their overseas connections as their base for corruption. Some corrupt officials commit their crimes outside of China’s borders, or move the proceeds of their criminal activities overseas. Some have even used different means to secretly acquire citizenship in foreign countries.”

Source: People’s Daily, April 11, 2012
http://politics.people.com.cn/GB/30178/17622484.html

PLA Daily Editorial: Strictly Observe and Maintain the Party’s Discipline

On April 10, 2012, the People’s Liberation Army’s General Political Department and the PLA’s Academy of Military Sciences jointly published an editorial in the PLA Daily. The editorial called for heightened vigilance in following the Communist Party’s orders. “The standard of conduct that Party organizations at all levels and all Party members must abide by is the discipline of the Party. It is essential to the unity of will and action within the whole Party. As the military forces of the ruling party implement the political tasks of the Party, we [the People’s Liberation Army] must be highly conscious of observing and maintaining Party discipline.” The editorial urged the upper leadership to lead by example with respect to following the Party’s orders.

The editorial appears to be part of a series of State media articles to ensure the military’s allegiance to the Party’s leadership.

Source: People’s Liberation Army Daily reprinted on the Communist Party website, April 10, 2012 http://theory.people.com.cn/GB/49150/17613793.html

People’s Daily: Corrupt Officials Secretly Obtain Foreign Citizenship

On April 11, 2012, People’s Daily published an article titled “Some of Our Corrupt Officials Have Secretly Obtained Foreign Citizenship or Dual Nationality." According to the article, some corrupt officials have transferred illicit money and goods out of China and even, through a variety of relationships, secretly obtained foreign citizenship or dual nationality.

The article applauds the anti-corruption decision and progress made by the CCP Central Committee led by “Comrade Hu Jintao as the general secretary,” and also suggested that ordinary people use the Internet to expose corrupt officials’ wrongful acts.

Source: People’s Daily, April 11, 2012
http://leaders.people.com.cn/GB/17622867.html

People’s Daily’s Commentary Supports Hu Jintao for Purging Bo Xilai

On April 11, 2012, People’s Daily published a commentary titled “Firmly Support the CCP Central Committee’s Decision.” The article praised the CCP Central Committee headed by “Comrade Hu Jintao as the general secretary” for making the “resolute decision” regarding an investigation of former Chongqing Party Secretary Bo Xilai for serious disciplinary offenses. On Tuesday April 10, Bo Xilai was removed from the CCP Politburo and his wife, Gu Kailai, is being investigated for the murder of British businessman Neil Heywood.

The article concluded, “We must consciously keep our thoughts in line with the CCP Central Committee and closely unite around the CCP Central Committee headed by Comrade Hu Jintao as the general secretary.”

Source: People’s Daily, April 11, 2012
http://opinion.people.com.cn/GB/17621326.html