Chinascope – Page 961

Wen Jiabao: Communist Leaders Have Agreed to Break the Banking Monopoly

During his trip to southern China, Chinese Premier Wen Jiabao stated that the top national banks in China have too much power and have made too much money, and that their monopoly must be broken. “As for financing costs, actually let me speak frankly here. Our banks make a profit too easily. Why? It is because a few large banks are in a monopoly position. People can only obtain loans from these banks. It is very difficult to obtain loans from other sources. Now private capital has entered into the financial market. Fundamentally speaking, [we] have to break the monopoly. The Communist Party’s Central Committee has reached a unanimous agreement to carry out a pilot project in Wenzhou. A successful Wenzhou pilot project should be promoted across the country. Some (features of the project) can be implemented immediately throughout the country. "

Source: Beijing News, April 4, 2012
http://finance.sina.com.cn/roll/20120404/034011744163.shtml

Briefings | | April 6, 2012 | Economy/Resources

Understanding Politics: Who Cannot Become a Communist Official?

A posting on the blog for the People’s Daily website spoke directly, tongue in the cheek, to the media’s readers and provided them with descriptions of those who cannot become Communist officials. First are those who are talented. Such people are so outstanding that they dwarf almost everyone else. The writer pointed out that, even if you do not step on others’ toes, people will be jealous of you regardless. If you have a wealth of true knowledge, you tend to have independent thinking, which is the biggest taboo for a politician. To be a Communist official, you must forget about your conscience, justice, and principles and must be opportunistic, slick and treacherous. Second are those who are shy and are not willing to spend money. If you do not have much money and rely on your salary to support your family, you are advised to stay at home. Politics can be secretive, unpredictable, and brutally competitive. You will not survive unless you use sinister means and have the courage to face death. Finally, if you lose sight of the ultimate goal, which is personal gain, you will not be far from failure.

Source: People’s Daily website, March 27, 2012
http://bbs1.people.com.cn/postDetail.do?id=117780951&bid=1

Briefings | | April 6, 2012 | Government/Politics

Red Flag Manuscript: Confidently Make State-owned Enterprises Bigger and Stronger

A high profile article titled “Confidently Make State-owned Enterprises Bigger and Stronger” recently appeared on Red Flag Manuscript, a core publication of the Chinese Communist Party’s Central Committee.

The author, a director at the policy making State Development and Reform Committee, refuted voices in favor of privatization. “Some people want the state-owned sector, as a percentage of GDP, to fall to 10%, the U.S. standard, and ‘exit the competitive sector.’ Some have asked the state-owned enterprises to exit the basic industries and the service sector, in the name of ‘antitrust.’ Some advocate that the state only control the land and financial sectors and completely retreat from the business world.” The article argued, “The experiences of Eastern Europe and Latin America have shown that a market oriented toward privatization will leave the national economy unprotected; its property rights and even its economic lifeline will then be controlled by foreign capital.”

The author emphasized that the state-owned enterprises should maintain an advantageous and dominant position in the following sectors: (1) strategic areas related to national security: defense and the science & technology industry (nuclear, aerospace, weapons, ships, and military electronics); national infrastructure (such as the communications and broadcasting, electricity, and railway networks and important transportation facilities); key urban infrastructures (water supply, drainage, electricity, gas, and roads); the financial sector; and bulk agricultural commodities. (2) important basic industries: such as power, telecommunications, energy, and key petrochemical and metallurgy industries. (3) non-renewable strategic resources: mining, oil and gas resources. (4) pillar industries and the high-tech industry: mining, metallurgy, petrochemical, machinery, and transportation equipment; and high-tech industries (new materials, new energy, electronic communications, aerospace, biomedical, etc.

Source: Red Flag Manuscript, March 26, 2012
http://www.qstheory.cn/hqwg/2012/201206/201203/t20120326_147755.htm

Briefings | | April 5, 2012 | Economy/Resources

People’s Daily: The U.S. Prints Money As a Way to Default on Its Debts

People Daily (overseas edition) published an article to reflect Chinese scholars’ opinions on U.S. Federal Reserve Chairman Ben Bernanke’s recent hint that the U.S. may implement a third round of quantitative easing of monetary policy. Zhou Xiaochuan, Director of the Bank of China, asserted that the U.S. should shoulder more responsibilities and not just consider the economic needs of the U.S. [when it prints dollar bills]. The U.S. quantitative easing of monetary policy will result in capital moving into other emerging economic entities, making it more difficult for these nations to control inflation. The Vice President of Chengdu University, Zhang Qizuo, expressed the belief that the U.S. adopts the tactic of inflation and devaluing the dollar to covertly default on its debts so as to shift the risk of the U.S. debt crisis to others. This is the ultimate and biggest risk for global investors. Yu Yongding, a member of the Chinese Academy of Social Sciences, noted that China is the biggest creditor in the world. The biggest victims of U.S. currency devaluation are its creditors.

[Ed. Contrary to Chinese media reports, many Western media indicate QE3 is unlikely during an election year.]

Source: People’s Daily, April, 4, 2012
http://world.people.com.cn/GB/14549/17571541.html
Reuters, April 3, 2012
http://www.reuters.com/article/2012/04/03/us-markets-usa-bonds-idUSBRE8320UJ20120403

Briefings | | April 5, 2012 | Government/Politics

Qiushi: The United Front Must Always Follow the Lead of the Chinese Communist Party

On April 1, 2012, Qiushi, a journal of the Central Committee of the Chinese Communist Party, published an article written by Du Qinglin, the head of the United Front Work Department of the Chinese Communist Party. The title was, “Vigorously Strengthen the Development of the United Front Culture.” According to the article, the United Front includes different political parties, ethnic groups, religions, classes, and different organizations in Hong Kong, Macao, and overseas. With the cooperative political Party culture, the United Front must always follow the lead of the Chinese Communist Party. It must always adhere to the socialist political development path with Chinese characteristics and demonstrate the characteristics and advantages of the political system and political Party system in China.

Source: Qiushi, April 1, 2012
http://www.qstheory.cn/zxdk/2012/201207/201203/t20120329_148684.htm

Briefings | | April 4, 2012 | Government/Politics

The CCP’s Ruling Position Requires Maintaining State-owned Enterprises

On March 30, 2012, Qiushi, a journal of the Central Committee of the Chinese Communist Party (CCP), reprinted an article from http://www.chinareform.org.cn/ titled “The Key to Reform Is to Distinguish State-Owned Enterprises from Public Sector Enterprises.” The article differentiates State-Owned Enterprises from Public Sector Enterprises. According to the author, state-owned enterprises refer to those enterprises in key industries (such as energy, IT, manufacturing, etc.) that, in Western free market economies, would commonly be private enterprises, while public sector enterprises refer to those in non-competitive industries which private entrepreneurs would find unprofitable. The article says public sector enterprises are common to both socialist and non-socialist countries, while the state-owned enterprises are unique to socialist countries.

According to the article, state-owned enterprises are a socialist symbol with Chinese characteristics and the economic foundation of the CCP, the ruling Party. Therefore, the CCP’s ruling position requires that it must maintain state-owned enterprises. Although China should have public sector enterprises based on the state capitalist enterprise system, just like other countries, China must keep state-owned enterprises with socialist characteristics.

The article concludes that the fundamental problem that socialist economic system reform must seriously study and resolve is how to enable state-owned enterprises and public sector enterprises to coexist and develop.

Source: Qiushi, March 30, 2012
http://www.qstheory.cn/jj/jjggyfz/201203/t20120330_148796.htm

Briefings | | April 4, 2012 | Government/Politics

China Review News: Chinese Government Accountable for the Wide Spread Usage of Poisonous Food

On April 1, 2012, China Review News published an article about how widespread the use of contaminated food is in China, holding the “relevant government authorities” accountable for not doing anything to solve the problem.

“Food safety problems such as eggs in the cancer-causing industrial dye Sudan Red, tainted milk, and cooking oil that has been recycled from discarded food waste are shockingly serious across the whole of China. As a result, everyone in China is panicked about what to eat. Consumer confidence has greatly declined because enterprises add all sorts of harmful supplements at will and the ‘relevant authorities’ have not done anything to solve the problem.”

Source: China Review News, April 1, 2012
http://gb.chinareviewnews.com/doc/1020/5/9/7/102059793.html?coluid=45&kindid=0&docid=102059793&mdate=0401003733

Briefings | | April 4, 2012 | Grapevine

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

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

The CCP’s Performing Arts Troupes in the U.S.