Chinascope – Page 979

Experts: Distribution of Income Is a Major Problem in China

At a press conference on February 29, 2012, Chi Fulin, the President of the China Institute for Reform and Development, stated that, in the near future, the government should introduce an income allocation plan that adjusts the allocation of capital in order to improve public welfare. “At the present time, State-owned capital is invested in competitive markets. It pushes the private sector out and over-heats the investment market. More importantly, it cannot reflect the public ownership of the State’s capital and is not conducive to social fairness.”

Zhang Zhuoyuan, a research fellow at the Institute of Economics at China’s Academy of Social Science, expressed that China is probably the worst country when it comes to income distribution and is also the most confusing and chaotic. Recently, when he was looking at the breakdown on his pay statement, he discovered that his base salary accounts for less than 20% of his total income.

Source: Yangtse Evening Post reprinted at China Economic Net, February 29, 2012 http://www.ce.cn/xwzx/gnsz/gdxw/201202/29/t20120229_23114559.shtml

Briefings | | March 2, 2012 | Economy/Resources

Peng Guangqian: The Persian Gulf May Mark the End of U.S. Hegemony

On February 26, 2012, China Review News interviewed Rear Admiral Peng Guangqian, a major general in the People’s Liberation Army and a strategist for China’s Academy of Military Science, about the situation in the Middle East. Peng pointed out that the West’s ultimate goal in attacking Syria is to target Iran, but there are many restrictions keeping the West from sending armed forces against Iran. Peng believes that if the U.S. were to launch a war against Iran, it would be the most difficult decision in U.S. history. Once such a war started, it would be the beginning of the real decline of American hegemonism; the Persian Gulf might well mark the end point of American hegemony. Peng suggested that it may be time for the ancient Persian and the modern American imperialists to come to an end together.

Source: China Review News, February 26, 2012
http://gb.chinareviewnews.com/doc/1020/1/6/6/102016680.html?coluid=148&kindid=7550&docid=102016680&mdate=0226001256

Briefings | | March 2, 2012 | Geo-Strategic Trend

Study Times: The U.S. Does Not Have the Final Say in Asia

Study Times published a commentary on the new U.S. strategy in Asia. The article’s author expressed the belief that the U.S. adjustment represents another post-Vietnam war contraction, rather than an expansion. It stated that the U.S. move is more a defensive one to safeguard what it has achieved, instead of an offensive one. In its strategy in Asia, the U.S. coordinates its military, political, and economic actions very well. “This strategic maneuver was carried all the way through and China felt real pressure.” However, the article continued, it is impossible to drive all Asian countries away from China and to isolate China completely. It appears that the U.S. may invite China to join the TPP at a later time so that China will have to play a passive role and simply follow the rules that have already been established. “But China will not accept such an invitation. The U.S. simply does not have the final say!”

Sourse: Study Times, February 27, 2012
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2012/02/27/07/07_33.htm

Briefings | | March 2, 2012 | US-China Relations

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 | | March 1, 2012 | 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 | | March 1, 2012 | 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 | | March 1, 2012 | 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 | | February 29, 2012 | 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 | | February 29, 2012 | Defense/Military

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