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China’s Reaction to Trump’s Election Win

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

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Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

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Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

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Xinhua: China Withstood Pressure to Mediate Syria Crisis

A Xinhua article reported on the recent visit of Chinese Vice-Minister of the Ministry of Foreign Affairs, Zhai Jun  to Syria and on China’s position on the Syria issue.

The article declared that China is a responsible peace mediator in Syria. China is not like the Western countries, which “support one side while attacking the other side.” Zhai visited both the current top government officials of Syria, including the president and the foreign minister, and the leaders of opposing factions.

As for what China will do if the UN votes again on a resolution on the Syria issue, Qu Xin, the Director of the China Institute of International Studies, said, “As a permanent member of the United Nations (UN) Security Council, China needs to take a clear stand on the Syria issue. In the next step, China will continue to promote a dialogue among the differing factions in Syria. ‘The UN cannot become a voting machine for launching another war.’ China opposes using exterior armed forces to interfere with the ‘change of power’ in a country.”
 
Source: Xinhua, February 24, 2012
http://news.xinhuanet.com/herald/2012-02/24/c_131427092.htm

Briefings | | |   Geo-Strategic Trend

Study Times: National Information Security Faces Major Challenges

Study Times published an article discussing the major challenges that China faces in the area of “national information security.” According to the article these challenges include the following. The general public has a serious lack of awareness of information security. Insufficient regulations and policies mean there is a lack of adequate mechanisms to protect the development of information. An international monopoly on cyber security technology deprives China of opportunities to obtain the high tech necessary to bring domestic technology up to speed, thus creating a serious vulnerability in national information security. Malicious attacks against information and transmission systems have seriously violated China’s national information security. An insufficient investment of capital and human resources in information security has led to an increase in threats to national information security.

Source: Study Times, February 27, 2012
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2012/02/27/07/07_31.htm

Briefings | | |   Information/Technology

2011 Saw Huge Growth in Central Government Enterprises

A Xinhua report revealed some statistics on the 2011 performance of China’s state-owned enterprises that are under the central government, or central government enterprises. (State-owned enterprises include those under the central government, provincial government, and city government, among which those under central government are the largest in size.)

In 2011, these enterprises achieved an operating revenue of 20.2 trillion yuan (US$3.2 trillion), up 20.8% over 2010; a net profit of 971.3 billion yuan (US$154 billion), an increase of 6.4%; and tax payments of 1.7 trillion yuan (US$0.27 trillion), up 19.7%; accounting for about one sixth of the national tax revenue. As of the end of 2011, the asset size of the 117 central government enterprises reached 28 trillion yuan (US$4.4 trillion), up 14.9 percent; with net assets of 10.7 trillion yuan (US$1.7 trillion), an increase of 11.4%. Among the 2011 Fortune 500 companies, 38 are China’s central government enterprises, an increase of eight over 2010.

For the first 11 months of 2011, those enterprises’ overseas operating revenues reached 3.4 trillion yuan (US$0.54 trillion) with a profit of 128 billion yuan (US$20.3 billion), an increase of 30.7% and 28% respectively. The growth rate significantly exceeds that of their domestic operations.

Source: Xinhua, February 28, 2012
http://news.xinhuanet.com/2012-02/28/c_111577568.htm

Briefings | | |   Economy/Resources

International Herald Leader: Break the U.S.’ Hold over World Bank Presidency

The International Herald Leader put forth an argument that China should work toward breaking the tradition that the U.S. holds the Presidency at the World Bank. “The developed countries’ actual share of and influence over the world economy is decreasing. The share of the new economies represented by the BRIC countries is rapidly increasing.” The decision on the Presidency needs to reflect the new world order. Also, letting the U.S., which has only 16% of the World Bank’s voting power, control the president’s position is unfair to other countries that have 84% of  the voting power. “There should be a ‘new game’ for the new candidate. U.S. internal politics should not be the determining factor; it should be determined by the major country members of the international finance system and the economic system.”

According to the article, China does not expect to see a game change this time, but it should openly express its dissatisfaction and consolidate support from other countries. “On the decision of Managing Director of the International Monetary Fund, France’s Lagarde paid a visit to China and to other new economies before she was appointed and also addressed China’s interest in the IMF’s quota and voting share reform. China can duplicate this success at the World Bank.”

Source: Xinhua, February 24, 2012
http://news.xinhuanet.com/herald/2012-02/24/c_131427183.htm

Briefings | | |   US-China Relations

Study Times: Beidou System’s Military Capability

A Study Times report published on February 27, 2012, stated that China’s self-developed Beidou Satellite System offers China strong military capabilities. What Beidou includes:

1. Offers global positioning capabilities to the military.
2. Provides communication services. It can integrate with the telecom system, the computer system, and the surveillance monitoring system to form a joint combat command system.
3. Provides precision-guidance to ballistic missiles, cruise missiles, ground missiles, guided bombs, and other precision strike weapons, to improve their hit ratio.
4. Accurately locates the position of long-range weapons and evaluates their attack effectiveness.
5. Provides navigation and positioning to special operations forces to improve the individual soldier’s combat capability and mobility.

Source: Study Times, February 27, 2012
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2012/02/27/07/07_32.htm

Briefings | | |   Defense/Military

Small and Mid-Sized Developers Abandon Their Businesses

In a special report about China’s real estate market, Shanghai Security News Online reported that some small and mid-sized developers in the second and third-tier cities in China have abandoned their businesses as they are no longer able to make payments on their loans. Taking Changsha, the capital city of Hunan Province, as an example, the developers of eight real estate projects have fled. There are similar cases in Nanjing City, Jiangsu Province, Jiaxing City, Zhejiang Province, Anyang City, and Henan Province.

The common thread among these run-away developers is that they have borrowed heavily, as much as several hundred million Yuan, from private money lenders. Such loans carry a high interest rate (in Changsha, they run from 3 to 5%, and sometimes even as high as 10% per month). Normally the loans are due in less than a year. While local banks charge only 0.7% per month, with China’s tightened bank loan policies, these developers could no longer get a bank loan.

According to the World Union’s report, for real estate developers in China, 1 trillion yuan (U.S. $163 Billion) in debt payments will be due soon.

Source: Shanghai Security News Online, February 28, 2012
http://www.cnstock.com/index/cj/201202/1871405.htm?page=7

Briefings | | |   Economy/Resources

Wen Yunsong Elevated to Chairman of China Satcom

China Economy recently reported that Wen Yunsong, the son of Chinese Premier Wen Jiabao, became chairman of the China Satellite Communications Group (China Satcom). The controlling shareholder China Aerospace Science and Technology Group made the decision. China Satcom was founded in 2011 and was managed by the State-owned Assets Supervision and Administration commission. It is one of six of China’s major telecommunications operators, and its primary business is satellite operations. China Satcom recently announced that the company will own 15 satellites and expects to have an income of RMB 160 billion (around US$24 billion) by the year 2015. By then, it will be the largest satellite operator in Asia.

Source: China Economy, February 21, 2012
http://www.ce.cn/xwzx/gnsz/gdxw/201202/22/t20120222_23092543.shtml

Briefings | | |   Government/Politics

CRN: PLA Established Technical Quality Handling Mechanism

China Review News (CRN) recently republished a Xinhua report that the General Armament Department of the People’s Liberation Army (PLA) announced and distributed to all branches of the army the new Technical Quality Issue Handling Rules for Army Equipment and Weaponry in Active Duty. The Rules for the first time clearly defined the governance structure and responsibilities of various army units for quality assurance. Technical support is now a requirement. Issue tracking and response documentation are also standardized. Periodical reporting requirements and levels of problems are defined too. In 2011, pilot programs for the implementation of the Rules were run in the Beijing and Lanzhou Military Regions and improvements were seen, as a result.

Source: China Review News, February 22, 2012
http://gb.chinareviewnews.com/doc/1020/1/7/8/102017899.html?coluid=4&kindid=18&docid=102017899&mdate=0222083351

Briefings | | |   Defense/Military