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Red Flag Manuscript: the Non-State Sector Needs the Party’s Presence

A Red Flag Manuscript article concluded that, in order to promote the sound and rapid development of the non-State sector of the economy, an essential condition is to strengthen the Party’s development in non-State enterprises. The article expressed the belief, “It is futile to rely on corporate governance; it is the Party organization in the enterprise that plays the core political role.” The non-State sector needs many forms of support from the Party in order to grow, while the development and expansion of the Party relies on support from the non-State sector. “This is the root cause for the Party to play a core political role in non-State enterprises.” The synchronized coordination between the Party Committee and the board of directors of the enterprise is the key to Party’s development in the non-State sector.

Source: Red Flag Manuscript reprinted by Qiushi, November 29, 2011
http://www.qstheory.cn/hqwg/2011/201122/201111/t20111129_126337.htm

Guangming: Substantial Increases in Government Spending on Party’ Propaganda

According to Vice Minister of Finance, Zhang Shaochun, China has spent a significant amount of money on the development of culture. Since 2005, the overall government spending on culture, sports, and media has increased at an annual rate of 20.9%, while central government spending has grown at the rate of 25.4% annually. Money has been used for museums, memorials, and national centers for education in patriotism, all of which are free to the public. The government will continue to fund the national publishing foundation so it can contribute to the widespread publication of Marxist and Leninist works, youth publications, and all those issues that are a national priority. Zhang said that the Party’s newspapers, journals, radio programs, and TV stations will continue to be funded through “government procurement” to enhance their vitality.

Source: Guangming Daily, November 26, 2011
http://culture.gmw.cn/2011-11/26/content_3049558.htm

The Lifespan of China’s Private Enterprises Is 2.9 Years

A forum was held in Guangzhou on November 28, 2011, on safeguarding the rights of China’s enterprises. At the forum, Professor Li Jianwei from the China University of Political Science and Law revealed that private enterprises in China have an average lifespan of only 2.9 years. Li said that the reason for private enterprises’ short lifespan is that these enterprises face various legal risks. Compared to national enterprises, private enterprises are in an inferior position.

Source: Guangzhou Daily, November 28, 2011
http://www.ce.cn/xwzx/gnsz/gdxw/201111/28/t20111128_22871174.shtml

Energy and Mining – the Top Area of China’s State-Driven Foreign Direct Investment

According to the statistics of China’s Ministry of Commerce, in 2010, China’s foreign direct investment (FDI) amounted to a historic $68.81 billion. With 5.2% of the global total FDI, China ranked fifth highest in the world. Most of the investment flows to six sectors: leasing, business services, and finance; wholesale and retail; energy and mining; transportation, storage, and postal services; and manufacturing.

The state-own enterprises accounted for 66.2% of the non-financial FDI stock, down three percent from the 2009 figure. Of these, the enterprises and units under the central government reached $42.44 billion, accounting for 70.5% of the flow. Pei Changhong, director of the Economic Institute under the Chinese Academy of Social Sciences, believes that China’s overseas investments are, to a large extent. driven by national policy. The system of relevant policies and investment services has not been fully established. An example is the recent losses suffered in Libya, which occurred because of a lack of investment insurance policies.

In terms of targeted markets, China’s FDI has a high concentration in Asia, especially Hong Kong, and in Latin America. The footprint in developed economies such as North America and Europe is still low. The energy and mining sector remains the top area of investment.

Source: China Economic Weekly, November 29, 2011
http://www.chinanews.com/cj/2011/11-29/3493517.shtml

Xinhua: What should China do about TPP?

A Xinhua article discussed China’s options regarding the Trans-Pacific Partnership (TPP). According to the article, on the one hand, in urging the TPP countries to increase their labor costs, the U.S. is attempting to increase the competitiveness of its manufacturing. On the other, it is pushing the TPP countries to purchase U.S. products so as to revive the U.S. manufacturing industry. What should China do? “We should be clear that without China, the TPP cannot represent the Asia-Pacific region and the U.S. will receive no meaningful benefits. We have joined the WTO and have the FTA in place. Therefore, we will not lose anything if we do not join the TPP. However, without China, the TPP, not China, will be marginalized in international trade.”

Source: Xinhua reprinted by Guangming, November 29, 2011
http://big5.gmw.cn/g2b/world.gmw.cn/2011-11/29/content_3064085.htm

Study Times: Integrate Socialist Core Values into Culture Products and Culture Services

The Sixth Plenary Session of the CCP 17th Central Committee set the establishment of a country with a powerful socialist culture as a strategic target. On November 28, 2011, Study Times, a journal of the Party School of the Central Committee of the Chinese Communist Party, published an article stating that “such a long-term strategic plan reflects the Party Central Committee’s cultural awakening, its becoming more and more active in cultural development, and its increasing self-confidence.”

The article repeatedly emphasized the socialist core values. “We must effectively integrate the socialist core values into culture products and culture services. Thus we can expand the global influence of the Chinese culture around the world by taking advantage of the universal acceptance of cultural values and international communication methods.”

Source: Study Times, November 28, 2011
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2011/11/28/01/01_29.htm

Study Times: What Caused the Collapse of the Former Soviet Union?

On November 28, 2011, Study Times, a journal of the Party School of the Central Committee of the Chinese Communist Party, published an article analyzing what caused the collapse of the former Soviet Union. The writer, Prof. Zuo Fengrong of the Party School, responded to a question as to why neither the Soviet people nor the Soviet Communist Party members stood up to defend the Soviet Union. The professor stated, “The fundamental reason was that the Soviet Communist Party departed from Marxist principles and goals and failed to establish a political system that secured ordinary people’s (social) status.”

He concluded, “Since the people had no right to elect and monitor cadres, they were disconnected from state power. Cadres made all the decisions and the people were just cogs in the gigantic socialist machine. Although the USSR’s Constitution offered the right of citizenship to its citizens in the literal sense, the principle of the citizens’ rights was not implemented until Gorbachev began his reforms. However, the citizens of the Soviet Union did not have long-term training in democracy and did not know how to use their rights, so they became an important force in advancing the nation’s disintegration under Yeltsin’s propaganda.”

Source: Study Times, November 28, 2011
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2011/11/28/02/02_35.htm

The U.S. Intention in Increasing Its Military Presence in the Asia-Pacific Region

On November 28, 2011, Xinhua News Agency’s Outlook Weekly published an article titled “The U.S. Intention in Increasing Its Military Presence in the Asia-Pacific Region.” According to the article, the U.S. intends to build political and economic partnerships favorable to U.S. interests in the Asia-Pacific region through strong military measures in order to ensure the stability of the U.S. hegemony.

The article stated, “Barack Obama is just like other U.S. presidential candidates in the past who, without exception, also dealt with China in a way calculated to win the votes of the domestic right-wing forces. …. The recent increase of the U.S. military presence in the Asia-Pacific region can also be viewed as an integral part of Obama’s campaign for his presidential re-election.”

Source: Xinhua News Agency’s Outlook Weekly, November 28, 2011
http://lwgcw.net/NewsShow.aspx?newsId=24712