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China Ended Two Years of Negative Real Interest Rates

According to the statistics published by the National Statistics Bureau, February’s CPI growth was 3.2 percent compared with the same period last year, the lowest since July 2010. The February CPI was below the one year savings interest rate of 3.5 percent thus ending the two year long period of “negative real interest rates” where the CPI has been higher than the interest rate.

Among commodities, food is still the key factor that drives up CPI growth. For example, pork, fresh vegetables, and cooked vegetable’s prices have increased 18.2%, 12.3% and 6.1% respectively over the same period last year.

Source: Chinese Economy, March 10, 2012
http://www.ce.cn/xwzx/gnsz/gdxw/201203/10/t20120310_23144612.shtml

China’s Top Leaders Addressed the Need to Maintain Stability in Ethnic Minority Regions

On March 9, during the two Conferences [the National People’s Congress and the People’s Political Consultative Conference], selected provinces and ethnic groups held panel discussions. China’s top leaders joined the discussions and stressed the importance of promoting growth while maintaining stability and ethnic harmony.

During the panel discussion with the Tibetan group, President Hu insisted that Tibet “must follow the directives that the central administration has given, walk the path of Chinese characteristics with Tibetan uniqueness, and effectively carry out the work that will safeguard development and stability in Tibet.” When Premier Wen Jiabao attended the discussion with Guangxi Province, he stated that harmony between ethnic groups is a key component of social harmony. In meeting with representatives from Xinjiang, vice President Xi Jianping noted that it is important to safeguard unity among ethnic groups, firmly resist division, and ensure stability.

Source: People’s Daily, March 9, 2012
http://cpc.people.com.cn/GB/64093/64094/17344951.html

Huanqiu Opinion: US Fears Losing Dominant Power in the World

Huanqiu carried an opinion piece on how the U.S. has recently launched a number of joint military exercises, including the Cobra Gold Military Exercises (Thailand), Cope North 2012 (the U.S., Japan, and Australia) and Key Resolve-Foal Eagle (South Korea), with Asian Pacific countries. The article wondered what the U.S. is afraid of as it launches one large scale military exercise after another. It stated that what the U.S. really fears is losing its dominant power in the world and that, therefore, U.S. strategy revolves around how it can secure absolute world dominance.

The article also warned that a fleet, missiles, or aircraft carriers do not mean much in the 21st Century. What matters to safety is social and economic development and close cooperation between different nations. The article said, “If the U.S. does not put down its ‘fear,’ it could create more enemies. It will eventually bury itself in its imaginary “threat” and be unable to dig itself out.” 

Source: Huanqiu, March, 2012
http://opinion.huanqiu.com/roll/2012-03/2506854.html

What’s China’s Bottom Line in the Iran Issue?

China Review News published an commentary article talking about China’s diplomatic policy on the Iran conflict. The article says, “U.S. Finance Secretary’s visit to China is not for discussing economic issues, rather, it is for the issue of sanctioning Iran. This is a quite strange thing.”

Regarding what China will do to Iran, the article says, “ Based on the past norm, Chinese authorities would adopt or partially adopt the American government official’s request out of the consideration of diplomatic interests. However,if U.S. Secretary of Finance comes to China in the hope of getting China to increase the sanction of Iran, then U.S. Finance Secretary will probably go home empty-handed. Chinese government will never agree to join the camp of sanctioning Iran unless Iran openly opposes U.N. Security Council’s Resolution and pulls farther and farther away in the issue of nuclear weapons.”

The article made it clear that “China will not interfere with other countries’ internal affairs, not to say force other country to yield under pressure by economic sanction and armed force threatening. It is necessary that China’s Foreign Ministry publicize its diplomatic policy, and eliminate the illusion of Western countries.”

Source: China Review News, January 25, 2012
http://gb.chinareviewnews.com/doc/1019/7/5/4/101975417.html?coluid=136&kindid=4710&docid=101975417&mdate=0125000148

New Media as Best Way to Promote Socialist Core Values

Guangming Daily published an article on how new media have become an important battleground for the proliferation of conflicts and an arena for the promotion of socialist core values. Through their popularity and due to people’s widespread participation, the new media can awaken people’s socialist values, internalize such values so that they become a popular faith, and reach out to more and more people. Further, the new media represent the best weapon to safeguard socialist core values in the face of the influx of Western capitalist values. As mainstream media, they can lead public opinion.

Source: Guangming Daily reprinted by Qiushi, March 5, 2012
http://www.qstheory.cn/wh/jsshzyhxjztx/201203/t20120305_142951.htm

China’s R&D Trails Far Behind the West

Study Times published an article discussing the need for China to develop an effective strategy to increase national competitiveness through innovation. In 2007, the U.S. spent a great deal of money on research and development. The total was $368 billion, which is 2.68% of its GDP, or $1,265.70 per person. In comparison, China currently spends about $48.7 billion on R&D, which is 1.46% of its GDP, or $37 per person. At the industry level, the transition from scientific and technological success to manufacturing and production has been very slow. Only 25% of the technological breakthroughs have made this transition, which is way behind the 80% rate in developed countries. Further, less than 5% of these successes have been developed to the point of full production. The article recommended upgrading industries in the following areas: new energies, information, biology, material, medicine, environmental protection, oceanography, and space, as well as other new emerging industries.

Source: Study Times, March 5, 2012
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2012/03/05/07/07_38.htm

CCP Implemented a Nationwide Campaign to Crack Down on Falun Gong before the Two Conferences

Through internal sources, Chinascope has obtained a document that the CCP Public Security Department issued about conducting a nationwide campaign to “screen and eliminate Falun Gong activities” in preparation for the “Two Conferences [the National People’s Congress and the People’s Political Consultative Conference].” The document was issued to police stations across China on February 25, 2012. Below is the translation of partial contents of the document:

“This year’s ‘Two Conferences,’ to be held March 3-5 is an important political event that will take place before the CCP’s ‘18th Congress.’ Eliminating interference and damage by the evil cults and ensuring Beijing’s stability is the important political task of the citywide national security department of public security. … We must soberly understand that superficial stability is achieved through the Public Security Department’s regular and heavy strikes. ‘Falun Gong’s ability to initiate’ such an activity is intact; and the energy to interfere is still intact. Once [we] let up on our attack, they will start to make trouble and revive their sabotage. Particularly along with the U.S.’s high profile ‘return to the Asia Pacific,’ the overseas ‘Falun Gong,’ as the front runner of the U.S. anti-China strategy, is also increasing its activity of infiltration and sabotage in our neighboring countries and regions, making the situation more complicated.”
 
“In order to maintain a high level of pressure and a strike-hard status against ‘Falun Gong’ and to ensure that no high impact incidents or events happen during the ‘Two Conferences,’ [we] have decided to conduct a focused and unified screening and elimination activity to prevent and attack ‘Falun Gong.’"

“The activity will be conducted from February 27 at 8:00 a.m. to February 29 at 8:00 p.m., 2012.” “We should focus our efforts on cracking cases; conduct centralized efforts to arrest the key suspects; strive to arrest one more round of ‘Falun Gong’ members; crack down on a series of ‘Falun Gong’ underground locations; and confiscate a large amount of ‘Falun Gong’ counter-propaganda materials.”

“[It is required] that the rule of reporting and delivering information be strictly followed. During the screening and elimination activity, each police station is required to crack at least one ‘Falun Gong’ case; to detain at least one ‘Falun Gong’ member; to dispatch and summarize once a day; and to report immediately in the case of any major incidents.”

SCMP: Hu Brands Former Chongqing Police Chief a Traitor

There has been a new development in the case of Wang Lijun, the former Chongqing police chief and deputy mayor who sought asylum a month ago at the United States consulate in Chengdu, Sichuan Province. According to the South China Morning Post, a source close to the Chinese People’s Political Consultative Conference (CPPCC) said that “On Saturday evening, President Hu Jintao issued an internal briefing to the Communist Party members among the CPPCC delegates, telling them that Wang was a traitor.”

“A government source in Chongqing took a similar stance yesterday, saying: ‘All officials above the prefecture level in Chongqing were told the day before yesterday [March 4] that Wang had betrayed his country.’”

When interviewed by Hong Kong based Phoenix TV at the Great Hall of the People, where the session of the National People’s Congress and the People’s Political Consultative Conference is held, U.S. Ambassador to China, Gary Locke, repeated the U.S. line on the deputy mayor. "He came in for a regularly scheduled meeting," Locke said. "He later left of his own accord."

Source: South China Morning Post, March 7, 2012
http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=0d5ea7bb8d8e5310VgnVCM100000360a0a0aRCRD&ss=China&s=News
Phoenix TV, March 5, 2012
http://v.ifeng.com/news/mainland/201203/deec6057-a9ce-4c1c-8196-096445e3221e.shtml