Chinascope – Page 973

Income of State Owned Companies Grew 9.9 Percent in January and February

The Ministry of Finance published the January and February financial report on State Owned Enterprises (SOE). The report indicated that in the first two months of 2012, the SOE’s income was 7.5 trillion yuan, which was 9.9 percent higher than the same period last year. The SOE’s profits amounted to 363.5 billion yuan, which was down 10.9 percent from the previous year. Profits for SOEs for the full year of 2011 were 2.2 trillion yuan, which was up 12.8 percent from 2010. The industries that had the largest growth in profits were tobacco, posts & telecommunications, while steel, petroleum & petrochemical, real estate construction, and mechanical industries had the largest declines in profits.

The SOEs included State-controlled share-holding companies, 117 central enterprises, and those SOEs at the local levels. The report did not include the State Owned Finance Industry.

Source: Xinhua, March 20, 2012
http://news.xinhuanet.com/fortune/2012-03/20/c_122855448.htm

Briefings | | March 21, 2012 | Economy/Resources

Xinhua: Need Party Leaders Who Dare to Oppose Those Loyal to the Dalai Lama

Tibet Daily published a commentary on the talk that Hu Jintao gave during his visit to the Tibetan delegation at the Two Conferences. Hu encouraged the delegation to further promote the “old Tibetan Spirit.” The commentary stated that, in order for them to further promote the “old Tibetan Spirit,” it would be necessary to be firm on anti-secession and to maintain solidarity with the central administration that Hu heads. The commentary also called for recruiting and training Party leaders who are “politically reliable, capable of safeguarding national unity, firm on anti-secession, and who dare to oppose those loyal to the Dalai Lama.”

Source: Xinhua, March 20, 2012
http://news.xinhuanet.com/local/2012-03/20/c_122855073.htm

Briefings | | March 21, 2012 | Government/Politics

The Economic Observer: Housing Market Still Slipping

The Economic Observer recently reported on the current status of China’s real estate construction market, which has been the primary engine for the economy. The dramatic decline in investment in the housing industry is having a major impact on China’s economic growth. Even the largest company in this industry, Wan Ke, is lowering its sales projection to half of the planned level. According to China Index Research Institute, in November and December of 2011, national land sales declined 47 percent each month. Starting this year, residential new construction growth was 0 percent, and 90 percent of the housing companies downsized or stopped their land purchases. Most of these companies are prepared to lower their prices. However, it is expected that even lowering their prices will not improve their sales volume. No one is optimistic about the near future.

Source: The Economic Observer, March 17, 2012
http://www.eeo.com.cn/2012/0317/223026.shtml

Briefings | | March 20, 2012 | Economy/Resources

CRN: U.S. Reshaping Global Strategy Based on Energy Independence

China Review News (CRN) recently published a commentary on the impact of the improved U.S. energy independence. The commentary mentioned that the U.S. energy self-sufficiency rate reached 81% in the first 10 months of 2011. The U.S. has transformed itself from a daily importer of 2.5 million barrels of refined oil to a net exporter of refined oil. Only 17% of U.S. imported oil is from the Middle East. Meanwhile, it is estimated that, in 2013, China will rely on imported oil for nearly 60% of its oil consumption. Today, Iran alone supplies 10% of China’s oil imports. China’s energy suppliers are mostly from the Middle East and Africa. In 2010, China’s share of the world’s energy consumption reached 20.82%. The commentary concluded, based on these numbers, that the highly improved U.S. energy independence offered a great opportunity for the U.S. to reshape its global strategy to focus on the East and to build a U.S.-centered Asia-Pacific order.

Source: China Review News, March 12, 2012
http://gb.chinareviewnews.com/doc/1020/2/4/7/102024759.html?coluid=148&kindid=7550&docid=102024759&mdate=0312000212

Briefings | | March 20, 2012 | US-China Relations

International Herald Leader: China Should Be Clear on Its Right to the Seas

The International Herald Leader, a subsidiary of Xinhua News, recently published a commentary on China’s position on its right to the sea. The commentary mentioned that, in the past two months, the Chinese Ministry of Foreign Affairs officially explained China’s position on the East China Sea and the South China Sea. The author said that China is taking steps to clarify its understanding of its rights to the nearby seas. This is to prevent any ambiguity in expressions, which might result in a strategic misjudgment. China’s traditional position was “putting aside disputes with joint development.” It seems the old fashioned position introduced uncertainty and openings that could be exploited. The commentary expressed the belief that China needs a peaceful international environment in which to grow. However, “a certain country” might find a few military conflicts between China and its neighbors to be just right. At least it would be much better (for that "certain country") than having to negotiate with China once China’s GDP surpasses US$10 trillion.

Source: Xinhua, March 12, 2012
http://news.xinhuanet.com/herald/2012-03/12/c_131454815.htm

Briefings | | March 20, 2012 | Geo-Strategic Trend

February Home Prices Dropped in 64% of Middle to Large Cities

On March 18, 2012, the National Bureau of Statistics published its February home sales report on 70 of the middle to large size cities in China.

The prices of newly constructed homes dropped in 45 out of 70 cities, as compared to January 2012; 21 remained flat and 4 cities had a price increase that was less than 0.1 percent. In the same period in 2011, the prices dropped in 27 out of 70 cities and 12 were higher in February than in January.

For existing home sales, in February 2012, the prices in 45 out of 70 cities dropped compared to January, while 14 remained flat and 11 had an increase that was under 0.4 percent. In the same period in 2011, prices dropped in 44 out of 70 cities and were higher in 7 cities in February as compared to January.

Source: China News Review, March 18, 2012
http://finance.chinanews.com/house/2012/03-18/3752023.shtml

Briefings | | March 19, 2012 | Economy/Resources

Chongqing City Leadership and Judiciary Branches Declare Unity with the Central Administration

On March 15, 2012, the city of Chongqing held a leadership conference and announced the removal of Bo Xilai as the Party chief of Chongqing and the appointment of Zhang Dejiang as his replacement. Zhang Dejiang, the Deputy-Head of the Central Organization Department, made the announcement.

Li Yuanchao, head of the Central Organization Department, spoke at the meeting. Li stated that Wang Lijun’s decision to enter the U.S. Consulate was a serious matter and that the central administration is paying close attention to the investigation. The change in the leadership post in Chongqing was the direct result of Wang’s case. Li requested that the entire Chongqing city leadership unify behind the central administration’s decision and cooperate with the transition in order to guarantee the stability of the political and social environment in Chongqing.

Zhang Dejiang also spoke at the meeting. He expressed his solidarity with the Party’s leadership with Hu Jintao as the head; he also declared his decision to persevere on the path of scientific development and the open and reform policy, and to fight corruption and promote clean governance.

Following the city leadership meeting, the Chongqing High Court and the People’s Procuratorate immediately held a meeting and repeated the key messages from the city leadership meeting. Both judiciary branches declared their solidarity with the decision that the central administration made. They said they would "maintain a high degree of unity with the central administration and firmly safeguard the stability of Chongqing."

Source: Xinhua, March 16, 2012
http://news.xinhuanet.com/legal/2012-03/16/c_122840891.htm

Briefings | | March 19, 2012 | Government/Politics

China’s Reaction to Trump’s Election Win

Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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