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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

Wen Jiabao: Corruption May Lead to the Death of the People and an End to the Government

According to Xinhua, on March 26, 2012, Premier Wen Jiabao delivered a speech to the State Council Fifth Independent Commission Work Meeting. Wen urged that a system be implemented to strictly require that leading cadres report relevant personal matters to their superiors and that oversight of those officials whose spouses and children have emigrated abroad (also called “naked officials”) be tightened. He recommended that the personal matters that the leading cadres report be open to the public, within a certain range, and that corruption cases be investigated and dealt with strictly.

Wen Jiabao stressed that corruption is the greatest danger to the ruling Party. If this problem is not resolved, the nature of China’s political foundation could change, leading to “the death of the people and an end to the government.” 

Source: Xinhua, March 26, 2012
http://news.xinhuanet.com/politics/2012-03/26/c_111704718.htm

Ministry of Commerce: China has the Most Trade Conflicts in the World

Beijing News recently reported that Zhong Shan, the Deputy Minister of Commerce, said at a conference that, in each of the last 17 years, China has had more trade conflicts than any other country in the world. China is having more types of conflicts in more industries with more countries. Trade protectionism against China is rapidly growing. Since the beginning of this year, 8 trade complaints have been filed against China and there have been 100 incidents in the past 12 months. Since 2008 there have been a total of 600. Zhong emphasized that China is focusing on responding to major cases and is establishing a conflict resolution mechanism that takes full advantage of the World Trade Organization (WTO) rules for self-protection. China has expressed the hope several times that the U.S. government will keep its promise to be against trade-protectionism.

Source: Beijing News, March 24, 2012
http://www.bjnews.com.cn/finance/2012/03/24/190129.html

Beijing Daily: Half of New Housing Projects Had Zero Sales

Beijing Daily recently reported that sales of new housing projects in the city of Beijing have nearly come to a standstill. According to the Beijing Real Estate Trade Management Network, in 10 out of 21 new housing projects that are on the market, zero contracts have been signed since the beginning of this year. Among all new projects, the rate of accumulated contracts signed so far this year is only eight percent. Last year that same number was 50 percent. Most of the projects that have had no sales are high end luxury products and apartments that are maintaining high pricing strategies. Experts suggested that the market does not look like it is about to improve. Buyers are holding off on their spending plans in the hope that prices will drop further. Based on how rapidly inventory is increasing, an average price drop of 15 percent is expected by the end of June, especially for low end housing products.

Source: Beijing Daily, March 24, 2012
http://www.bjd.com.cn/10bjxw/ss/201203/24/t20120324_1570498.html

Xinhua: Guangdong Economy Slowing Down

Xinhua recently reported that the economy of Guangdong Province has been slowing down. Guangdong Province is one of the world’s major manufacturing bases. In the past two months, the output of large scale manufacturers has increased only 5% compared to the same period last year. According to the Guangdong Provincial Bureau of Statistics, foreign investment based manufacturers represent 60% of the industrial economy of the province. In the past two months, this section has declined by 0.4%. The heart of Guangdong’s economy is the Pearl River Delta region. The exports from the nine cities in this region only increased by 2.7% and Guangdong’s exports have shown a decline of 4% compared to last year. This is the first time in three years that the province has suffered a decline in exports. Eleven cities in the province have reported declines.

Source: Xinhua, March 24, 2012
http://www.gd.xinhuanet.com/newscenter/2012-03/24/content_24950679.htm