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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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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

Xinhua: U.S. The Cost of Starting a War Is Lower

Xinhua recently published a report commenting on cuts in the U.S. defense budget. According to the new budget plan, the defense budget for next year will be reduced by $32 billion. A total of $487 billion will be cut over the next decade. The report expressed the belief that the factors leading to the reduction were the current unstable U.S. economic situation and the political atmosphere of a presidential election year. However, the article pointed out that the budget reduction also reflected some strategic improvements that the U.S. military has made. One is strengthened mobility and delivery capabilities, which make deploying military forces to the front-line much easier and faster. Hence there is no need to keep a large amount of manpower deployed in remote areas. Another improvement is in the technology area where unmanned and space-based attack capabilities are becoming game changers. The report concluded that the budget cuts demonstrated that it will be easier and cheaper for the U.S. to start future wars. The lowered U.S. defense budget may mean more trouble for the world.

Source: Global Times, February 25, 2012
http://mil.huanqiu.com/Observation/2012-02/2470054_2.html

Briefings | | |   US-China Relations

Hunan Riot Police Dispatched to Chongqing, Sichuan to Maintain Stability

According to the Hong Kong based Information Center for Human Rights & Democracy, approximately 1,500 riot police under the direct command of the Central Military Commission of the Communist Party were sent from Laiyang, Hunan Province, to Chongqing, Sichuan Province. Wang Lijun, the former police chief and Vice Mayor of Chongqing, who used to lead the Chongqing riot police, is currently under arrest and is being investigated in Beijing. Officials from the local State Security Department and the Chongqing Riot Police are also being investigated. It was reported that the Communist leaders are concerned that in times of riots, the Chongqing riot police might not follow orders. Hence the Hunan riot police have been moved and are stationed in Chongqing as a precaution.

Source: Information Center for Human Rights & Democracy, February 24, 2012
http://www.hkhkhk.com/

Briefings | | |   Social Stability

Ministry of Heath: No SARS in Baoding Military Hospital

On February 25, 2012, China’s Ministry of Health issued a press release rebutting online blogs about suspected SARS patients in a military hospital. According to Internet blogs, there are about 300 soldiers currently undergoing treatment in isolation in the No. 252 military hospital in Baoding, Hebei. They are being treated for a mysterious respiratory syndrome with symptoms that include a continued high fever. The press release from the Ministry of Health stated that the outbreak is the result of a Type 55 adenovirus respiratory infection, that none of the patients are critically ill, and that no deaths have occurred. The release said that, after applying several types of treatment, the outbreak has been effectively controlled.

Source: Ministry of Health of China, February 25, 2012
http://www.moh.gov.cn/publicfiles/business/htmlfiles/mohwsyjbgs/s3578/201202/54205.htm

Briefings | | |   Social Stability

Nanfang Weekend: How Many Ministries and Ministers Are There in China?

Nanfang Weekend published an article which had an overview of ministerial level agencies and ministers of the Communist Party. Most of ministerial level agencies are under the State Council. The rest are within the Party system. Examples include the Central Commission for Discipline Inspection, the Organization Department, the Publicity Department, People’s Daily, the Party School of The Chinese Communist Party, the Party Literature Research Centre, and the Party History Research Centre.

While there are at least 74 ministerial level agencies, there are more than 74 minister level cadres. Deputies may be  minister level cadres and non-ministerial level agencies may be headed by minister level cadres. Examples of the latter include heads of liaison offices in Hong Kong and Macau. The two Vice Presidents of China’s Supreme Court are also minister level cadres. Ten important social organizations are headed by minister level cadres including the Communist Youth League, the All China Women’s Federation, the China Federation of Literary and Art Circles, the Chinese Writers Association, the Chinese Disabled Persons’ Federation, the China Society and Technology Association, and the All China Federation of Returned Overseas Chinese.

Some of the leaders of state sponsored democratic parties are also minister-level cadres.

Source: Nanfang Weekend, February 16, 2012
http://www.infzm.com/content/70110

Briefings | | |   Government/Politics

Stories about Bo Xilai and Wang Lijun

[Editor’s Note： Recently in China, there was a political shake-up involving Bo Xilai and his right hand man, Wang Lijun. It was so serious that the shockwaves reverberated in the U.S. Chinascope collected some stories about Bo and Wang from Chinese media (both inside and outside of China) that may not have been widely reported in the Western media. The following are excerpts from those articles.]

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Reports | | |   Report