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Global Times: Increased Activity at Chinese Naval Bases

On April 20, 2012, Global Times reported that, given the background of the recent conflict with the Philippines, the South China Sea Fleet of the Chinese Navy is reportedly having much more activity in the region. The Chinese Navy is improving the underground ammunition repository and new construction is being completed. Also, at least one of the three 094 nuclear submarines based in the Sanya Naval Base is leaving the base for the South China Sea patrol. Both the President and Defense Secretary of the Philippines recently called for taking a firm stand against China.

Source: Global Times, April 20, 2012
http://mil.huanqiu.com/Observation/2012-04/2642808.html

BBC: China’s Macroeconomic Numbers Show Irregular Combination

BBC Chinese recently reported on the macroeconomic numbers that the National Bureau of Statistics released on China’s first quarter of 2012. The GDP growth of 8.1% is lower than the market expectation of 8.4%. However it is better than the annual expectation of 7.5% that the government predicted. Another important number also released was the Consumer Price Index (CPI) of 3.8%, which is considered high even though it is below the government goal of 4.0%. Well-known economist Dr. Zhang Wei, from the University of Nottingham, suggested that it is more important to examine the fact that the combination of the GDP and the CPI numbers is irregular. Usually a lowered growth rate is coupled with a lowered inflation rate. However the latest Chinese number showed that a lowered growth rate actually brought about higher inflation. He believed that this means the central government’s economic policies will become harder to implement and the Chinese economy is facing a much bigger challenge.

Source: BBC Chinese, April 13, 2012
http://www.bbc.co.uk/zhongwen/simp/chinese_news/2012/04/120413_china_economy.shtml

International Herald Leader: U.S. Wrongfully Applies Domestic Laws Internationally

The International Herald Leader, under Xinhua News, recently published an article accusing the United States of applying its domestic laws to international affairs. For now, this is reflected in the Iranian sanction effort (banning U.S. banks from doing business with countries who keep buying oil from Iran). The article referred to a recent announcement that Secretary of State Hillary Clinton made on March 20, 2012. Clinton temporarily relaxed sanctions on the financial organizations of many countries that are U.S. allies. However, under Section 1245 of the National Defense Authorization Act, sanctions remain for countries like China and India, who keep a normal oil trade relationship with Iran. The article claimed that U.S. allies like South Korea and Japan have “silent resentment” even though they have cooperated with the United States. The author expressed the belief that the U.S. is abusing its international superpower status to illegally use its domestic laws to regulate other countries. The author suggested that the U.S. approach is rude and that using normal channels to buy oil from Iran does not break any U.N. resolution. The article listed many other examples of how the U.S. uses domestic laws to serve its foreign policies.

Source: International Herald Leader, April 6, 2012
http://news.xinhuanet.com/herald/2012-04/06/c_131508549.htm

Number of Chinese Telephone Users Reached 1.3 Billion

The Ministry of Industry and Information Technology disclosed that, by the end of March 2012, the number of Chinese telephone consumers had reached 1.3 billion, which included 1.02 billion mobile phone users. Among the mobile phone users, there were 150 million 3G users and 40 percent of those were 3G TD users. 3G TD is the China developed 3G interface. The statistics also showed that there were 157 million Chinese broadband users and 670 million mobile Internet users. The total first quarter revenue for the telecommunications industry was 250 billion yuan, up by 10.2 percent compared to the first quarter of 2011, while the overall price was down 6.1 percent.

Source: Xinhua, April 20, 2012
http://news.xinhuanet.com/tech/2012-04/21/c_123015720.htm

China’s Economic Growth Slows Down

According to the Ministry of Statistics, GDP growth in first quarter of 2012 was 8.1 percent. Since the fourth quarter of 2010, this was the 5th quarter to see a decline. The growth in the eastern region showed a larger decline, while the middle west region appeared to be stable. According to Peng Xinyun, an economist at the Chinese Academy of Social Sciences, the decline was due to a number of factors: the macro policy adjustment on real estate and fixed asset investment, currency contraction measures, as well as the economic crisis in the E.U. and the slow recovery of the U.S. economy.

Many economists believe that the GDP in the first quarter was lower than expected, but it is expected to improve in the second quarter. Premier Wen Jiabao delivered the 2012 Government Work Report, which set the target for the 2012 GDP at 7.5 percent.

Source: Xinhua, April 21, 2012
http://news.xinhuanet.com/fortune/2012-04/21/c_111821226.htm

Huanqiu Commentary: Do Not Overestimate Personal Influence

On April 20, 2012, Huanqiu a daily tabloid under People’s Daily, a Communist Party paper, published a commentary titled, “Do Not Overestimate Personal Influence.” The commentary stated that there is a lesson to be learned from the Bo Xilai incident: that leaders shouldn’t overestimate their power and place themselves above the rules and the laws of the Party and the country. It also suggested that the theory that the West promotes, that there is “a power struggle between two factions,” could have the effect of making it difficult for social media to make judgments properly. Also, a small number of people might be misled.

The article said, “The Bo Xilai incident tells us that, in the current China, a leader should not overestimate his personal influence. Otherwise he might develop the urge to place himself above the rules and the laws of the Party and the country. For those who study China, if they do not understand this point, it could lead to a misperception and they will, therefore, be unable to make an accurate judgment about this country.”

The commentary further explained that no matter how much personal influence or how high the person’s position, it will not result in an exemption from punishment. “Very few of those who hold a high rank or power have obviously misunderstood this or intended to take the chance.”

The article recognized the achievements of Chongqing in the past few years and stated that it has always been viewed as a separate issue from the investigation into Bo’s case: “The achievements were inseparable from the precise directions given by the central administration and the effort made by the people of Chongqing.”

The article suggested that some people in the West tried to promote the theory that there was a “power struggle between two factions,” and some people in China even agreed with it. Other than those who have “ulterior motives,” many have overestimated the effect of personal influence on China’s politics; this theory might mislead people in judging the Bo Xilai incident.

Source: Huanqiu, April 20, 2012
http://china.huanqiu.com/hot/2012-04/2644687.html

Outbreak of H5N1 Reported – 95,000 Chickens Culled

On April 18, 2012, the Ministry of Agriculture (MOA) announced that China’s Northwestern Ningxia Hui Autonomous Region had reported an outbreak of H5N1 bird flu virus in poultry. “On April 13, more than 23,000 chickens at some farms in Yanglang Village of Touying Town in the city of Guyuan in Ningxia showed symptoms of suspected avian flu. On April 18, after testing samples collected at those sites, the National Avian Influenza Reference Laboratory confirmed that the epidemic was a case of H5N1 bird flu virus.” According to the MOA announcement, a total of 95,000 chickens have since been culled. 

Source: Ministry of Agriculture, April 18, 2012
http://www.moa.gov.cn/zwllm/yjgl/yqfb/201204/t20120418_2605976.htm

Bo Xilai’s Financier, the Dalian Shide Group, May Face Bankruptcy

According to The Beijing News, the Dalian Shide Group, a Chinese private enterprise whose chairman is Xu Ming, is reportedly being investigated for economic problems. It has used up most of its stock ownership in banks as collateral for loans and has borrowed more than 6 billion yuan in funds. Meanwhile, within this coming month, the company has over 800 million yuan in payments to make on its loans; the monthly interest rates run as high as 4.5%. It is reported that the company has started preparations in anticipation of filing for bankruptcy.

Xu Ming established Shide in Dalian in 1992. In 2005, Forbes ranked Xu as China’s eighth richest man. It has been reported that Xu has close ties with Bo Xilai, the former Party Secretary of Chongqing City, Sichuan and has provided him with financial support. On March 15, 2012, the CCP leadership removed Bo from his position and he is currently under investigation. Shortly thereafter, Shide lost contact with Xu Ming, whom many believe is also under investigation or arrest in connection with Bo.

Source: The Beijing News, April 19, 2012
http://www.bjnews.com.cn/finance/2012/04/19/194671.html