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Huanqiu: Six Countermeasures to the Challenges from the U.S.

[Editor’s Note: Huanqiu Online, the Chinese version of Global Times Online, a daily publication under People’s Daily, published an article by Zhang Weiwei, a researcher at the Chunqiu Comprehensive Research Institute, a Chinese think tank, on how China should respond to the U.S. suppression of China’s rise. The author suggested six measures that can be taken in the diplomatic, economic, regional, and ideological (soft power) areas. The author states that “China’s GDP will surpass the U.S.’s GDP in ten years” and the China Model will defeat the U.S. system. The following is a translation of the article.] [1]

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The Number of Social Media Users Tops 300 Million

On November 21, 2011, the 11th China Internet Media Forum was held in Wuhan, Hubei Province. Over 300 representatives from the central government, Xinhua News, People’s Daily, China News Service, Internet media companies, and academia attended the forum. A Deputy Chief of the Propaganda Department of the Communist Party Central Committee spoke at the forum. He stated that there are three trends worth noting: first is that the Internet is becoming more like media and increasingly impacts society; second, the Internet is getting more “mobile;” and third, micro-blogs and other social media are rapidly gaining momentum.

The statistics released at the forum show that the number of Internet users in China is approaching 500 million, that close to 350 million Internet users use cell phones to browse the Internet, and that 900 million cell phone users may be potential customers of the mobile Internet. The most significant trend in Chinese Internet is the burgeoning growth of the social media micro-blogs, with users topping 300 million. Led by the State media, the attendees adopted the Wuhan Declaration, a pact to “vigorously promote socialist core values.”

Source: China News Service reprinted by Huanqiu, November 21, 2011
http://china.huanqiu.com/hot/2011-11/2193180.html

Companies Urge Chinese Government to Win over Libya’s Trust

The International Herald Leader published a report from Tivoli entitled “Chinese Companies in Libya in Critical Need of Help.” The article stated that the 7-month war in Libya inflicted immeasurable damage on Chinese companies in Libya and that the first step toward reconstruction of the companies is to learn how to deal with the new Libya government. Among the foes that they are facing, the Chinese companies are concerned that the position of Libya’s leaders toward China is not clear. “Some officials have even shown varying degrees of an anti-China tendency. Thus, Chinese-funded enterprises are at a relative disadvantage politically. Some of the Libya partners even half-jokingly warned that they will reduce cooperation with Chinese enterprises.” Further, China has few political advantages in comparison with the NATO countries that imposed the no-fly zone that led to the defeat of the Kaddafi regime. “Western companies are likely to have a larger piece of the pie during the upcoming Libya reconstruction.”

These Chinese companies recommended that the Chinese government offer low or zero interest rate loans to Libya as a means of winning the the new Libya government’s trust and support. For example, if China agrees to accept oil as in kind payment for its losses during the war and for the project funds that are overdue, it would be a win-win for all: Libya can proceed to complete unfinished projects; the Chinese government can win the trust of the new Libya and have access to more oil reserves; and Chinese companies in Libya can re-build the projects in Libya.

Source: International Herald Leader, November 21, 2011
http://news.xinhuanet.com/herald/2011-11/21/c_131253008.htm

Officials, Movie Stars, Business Owners, Intellectuals: China’s Social Elite Emigrate Abroad

On November 18, 2011, an article titled “The Most Dangerous Time Arrives: Four Groups of China’s Social Elite on the Run; All Emigrate Overseas” was published on a blog in ifeng.com, the website of Hong Kong based Phoenix TV.

The article listed four categorizes of China’s social elite who have emigrated or are going to emigrate abroad. They are those who have power (officials), those who have fame (movie stars), those who have money (private business entrepreneurs) and those who have expertise (scholars).

“Actually, China’s economy has entered into the most dangerous period of time: a drain of private capital, the collapse of manufacturing companies, a decline in the price of property, and heavily indebted local governments. … Unless China is careful, the entire economy will collapse.”

"The whole nation’s morale is so low that people want to leave.”

Source: ifeng.com, November 18, 2011
http://blog.ifeng.com/article/14734086.html

China Can Endure a 50% Decline in Housing Prices

On November 21, 2011, China Securities Journal published an article under the name of Chen Bingcai from the Chinese Academy of Governance titled, “The Fall of Housing Prices Will Benefit Industrial Restructuring.”

Chen claimed that the decline in the price of housing is a trend that will be helpful to an industrial structural adjustment. He suggested that China can endure a 50% decline in housing prices. First, Chinese banks can still get back the principle on their mortgage loans because housing prices have increased 50% to 80% over the last two years. Second, lower home prices are good for the lower end consumers. Third, a drop in real estate prices will not affect owners who occupy their homes (and therefore intend to keep them).

Source: China Securities Journal, November 21, 2011
http://www.cs.com.cn/xwzx/05/201111/t20111121_3135719.html

The PLA Establishes Strategic Planning Department

According to China News, on November 22, 2011, the China’s People’s Liberation Army (PLA) established a Strategic Planning Department.

Under the General Staff Headquarters, the newly founded PLA Strategic Planning Department’s main functions include studying critical strategic issues, drafting plans and reform proposals for the PLA’s development, submitting suggestions on the allocation of the PLA’s strategic resources and overall management, coordinating cross-headquarters and cross-field issues, and examining and evaluating the implementation of plans for the PLA’s development.

Source: China News Service, November 22, 2011
http://www.chinanews.com/gn/2011/11-22/3479037.shtml

Maintaining Tight Control over Ideology

[Editor’s Note: Qiushi Journal republished an article from the Contemporary World and Socialism magazine on the Chinese Communist Party’s (CCP’s) control over ideology work, which includes establishing, deciding on, shaping, and disseminating ideology. [1] The author, Wang Yonggui, is a scholar at the School of Marxist Studies at Nanjing Normal University. In the article, Wang stressed that the Party’s control over ideology “cannot be loosened for a single moment” and that “strengthening the Party’s sole leadership over work in ideology is an important weapon for the CCP’s success.” The following are excerpts from the article.]

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Wen Jiabao: China-Japan-Korea Free Trade Zone Negotiation Starts Next Year

Beijing News reported that, on November 19, 2011, Chinese Premier Wen Jiabao met with Japanese Prime Minister Yoshihiko Noda and South Korean President, Lee Myung Bak. Wen called for an intensified joint effort to complete the research work on the free trade zone of the three nations. He expected the free trade negotiation to start next year and a completion of the investment negotiation as early as possible. China, Japan and Korea are the three most important nations in the East Asia region. The sum of the GDP of these three countries accounts for more than half of the GDP of the entire East Asia region. However, a researcher at the Chinese Academy of Social Sciences expressed the belief that the three nations have to build political trust first.

Source: Beijing News, November 20, 2011
http://epaper.bjnews.com.cn/html/2011-11/20/content_293741.htm?div=-1