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Scholar: Chongqing Practice to Revive Mao’s Control Bound to Fail

Zhang Ming, a professor of political science at Renmin University of China, wrote about Chongqing’s attempt to restore Mao’s model of control. In recent years, under the leadership of Bo Xilai, who was removed from his position this month, Chongqing launched a campaign to crack down on “black” businesses and their owners; and a movement to sing “red” songs in an attempt to revive Mao’s style of control. According to Zhang, there are two major vulnerabilities inherent in the Chongqing practice. First is that it is not economically sustainable. A number of grand government projects have been launched without considering the cost; they were funded largely with money that may have been wrongfully confiscated from “black” businesses. Neither borrowing nor advancing funds before the revenue came in has helped to ease the lack of funding. Second, Chongqing’s practices have led to increased tension, internally and externally. A Chongqing practice as implemented in one city is merely a pike fish in a carp fish pond (the entire country). If materialized nation-wide, the Chongqing practice would become a mammoth shark. Communist Party officials who previously were persecuted during the “Great Cultural Revolution” still remember Mao’s way of using political movements to purge others. “The louder the noises generated by Chonqing’s practice and the more followers it gathered throughout the country, the more apprehensive were the Communist Party officials. Not just those in Chongqing but those outside of Chongqing were equally apprehensive. Because of these two vulnerabilities, it was inevitable that Chongqing’s practices would end up in trouble.”

Source: Zhang Ming Blog at Caijing.com, March 24, 2012
http://blog.caijing.com.cn/expert_article-151368-34329.shtml

PLA Daily: the Military Must be Politically Correct and Well Disciplined

A commentary jointly issued on March 28, 2012, by the People’s Liberation Army General Political Department and China’s National Defense University called for the highly centralized unity of military personnel and stressed having the utmost discipline. It stated that maintaining the Party’s highly centralized unity is critical to the enhancement of the cohesive combat effectiveness of the military. Regardless of the changes and new challenges ahead, the military must be under the absolute leadership of the Party and “firmly follow the orders of the Party’s Central Committee, the Central Military Committee, and President Hu under all circumstances.” If the military is not politically correct, “it will likely lose direction amidst complex and confusing political struggles. … For every Party member, following the Party’s discipline is a political requirement; the most important requirement is to be in compliance with political discipline.”

Source: People’s Liberation Army Daily reprinted by People’s Daily, March 27, 2012 http://theory.people.com.cn/BIG5/49150/17497817.html

Survey Showed 93.4 Percent Would Like Ticket Prices for Cultural Events to Be Lower

China Youth Daily recently conducted a survey of 12,234 people from 31 provinces and regions about the ticket prices for culture oriented leisure events. Of those surveyed, 85.8 percent complained that the prices for movies, stage plays, and concerts were too high. Of those who were interviewed, 52.6 percent were born after the 1980s; 26.7 percent were born after 1970s; and 84.8 percent are currently employed.

The survey results showed that 74.8 percent rarely have any culture oriented leisure activities. Of those surveyed, 86.1 percent believe that those activities shouldn’t be luxury items and 93.4 percent would like to see prices lowered; 71.2 percent are concerned that the high ticket prices will keep ordinary people away; 64.8 percent of those surveyed believe that when cultural events are overpriced, the pricing structure is at fault; 49.7 percent think it is due to high production costs; 47.7 percent think that the government didn’t provide funding or support; 73.7 percent suggest having more cultural activities for the public that are tailored toward the general public.

A comparison between the movie ticket prices in the U.S. and in China showed that low to middle class people in the U.S. with a monthly income of US$3,000 would spend about 0.2 percent or US$7.94 on one movie ticket. In China, people who make 3,000 yuan (US$476.10) a month would spend 2 percent of their monthly income or 60 yuan (US$9.52) on one movie ticket.

Source: China Youth Daily, March 29, 2012
http://news.xinhuanet.com/newmedia/2012-03/29/c_122905861_2.htm

Hurun Report: Ninety Percent of Billionaires Send Their Children to the West for Education

The Chinese Luxury Consumer White Paper 2012, a joint study done by China’s Industrial Bank and the Hurun Research Institute, was published on March 27, 2012. The study revealed that the number of China’s wealthiest individuals, those with net assets of over six million yuan (~US$1.0 million) has increased to 2.7 million; their average age was 39 years old. The number of those with more than 100 million yuan (~US$16 million) reached 63,500; their average age was 41 years old. Among them, 85 percent plan to send their children overseas for education; 90 percent of the super rich (billionaires) plan to do so.

Source: People’s Daily, March 28, 2012.                                                                                         http://finance.people.com.cn/GB/17515451.html

China to Launch Comprehensive Financial Reform Pilot Project in Wenzhou City

On March 28, 2012, the State Council executive meeting approved the implementation of the “Overall Program of Comprehensive Financial Reform Pilot Zone in Wenzhou City of Zhejiang Province,” to implement the decision to establish a pilot project of comprehensive financial reform in Wenzhou City. The meeting proposed to carry out comprehensive financial reforms in order to effectively solve the outstanding problems with economic development in Wenzhou and to guide the development of private financing to enhance the ability of financial services to contribute to the real economy. The program has an important exploratory significance as it may lead to the country’s financial reform and economic development. 
In this regard, the meeting proposed to accelerate the development of new financial organizations, to encourage and support private capital to participate in the reform of the local financial institutions, and to launch new financial organizations such as village banks, mortgage companies, and rural fund cooperatives. The meeting proposed, as part of the pilot project, to create and develop financial products and services for small and micro enterprises and for the agricultural sector.
Source: Xinhua, March 29, 2012
http://news.xinhuanet.com/fortune/2012-03/29/c_122901535.htm

Huanqiu: Hold the Line of Defense and Resist Rumors

On March 26, 2012, state media Huanqiu published a commentary in an attempt to quash Internet postings about friction among the top Communist Party leaders. “Recently, certain rumors have been spreading on and off the Internet, with high visibility. Some of them even involve Changan Street (the location of the Chinese State Council) and Zhongnanhai (the headquarters of the Communist Party). These rumors are very bizarre and ridiculous, thus interfering with public opinion. Chinese society should be on the alert about this and should not let the rumor mill run without restrictions.” The commentary alleged that the rumors are quietly eroding society. “[To legitimize rumors] is, in fact, to build a publicly-accepted world outside of the current political framework and to constantly erode the authority of the current system. Once rumors are legitimized, they will become a cheap tool to disintegrate the country ideologically and politically.”

Source: Huanqiu, March 26, 2012.
http://opinion.huanqiu.com/roll/2012-03/2554859.html

Study Times: Developing a Modern State-Owned Enterprise System with Chinese Characteristics

On March 26, 2012, Study Times published an article on the modern state-owned enterprise system with Chinese characteristics. The article described it as the modern enterprise system with the involvement of the Chinese Communist Party organizations, i.e., a combination of the advanced corporate governance structure of the modern enterprise system and the placement, responsibility, and tasks of the Party organizations. The Party organizations must be in the political core position in state-owned enterprises and fully play a central role in corporate governance. 

The modern state-owned enterprise system with Chinese characteristics has three critical components: 1) the Party’s Leadership, 2) the state as the controlling shareholder, and 3) a modern enterprise system.

Source: Study Times, March 26, 2012
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2012/03/26/08/08_23.htm
http://theory.people.com.cn/GB/49154/17492277.html

PLA Daily: Ensure the Smooth Transmission and Reception of Military Orders in the New Situation

On March 27, 2012, PLA Daily published an article that discussed ensuring that all PLA troops resolutely obey the orders from the CCP Central Committee, the CCP Central Military Commission, and Chairman Hu Jintao. “In this new situation, when the Party, the nation, and the world are undergoing changes, our Party faces many unprecedented new circumstances, problems, and challenges.”

“At the PLA delegation plenary session of the Fifth Session of the 11th National People’s Congress, Chairman Hu talked about solidly organizing educational activities that focus on ‘viewing politics as the priority, considering the overall situation first and being obedient, seriously sticking to political discipline and organizational discipline, and ensuring the smooth transmission and reception of military orders.”

Source: PLA Daily, March 27, 2012
http://www.chinamil.com.cn/jfjbmap/content/2012-03/27/content_1714.htm