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Yearly Archives: 2014 - 90. page

China Changes to Two-Child Policy

On December 30, Xinhua released the full text of a directive issued by the China Communist Party Central Committee and State Council on changing the one-child policy to a two-child policy. 

According to the directive, if a spouse is the only child, the spouse may have two children.  This change to the two-child policy will, among other things: 
(1) “Help to sustain healthy economic development. At present, China’s low birth rate has declined steadily; the total working-age population for 15 to 59 year old has been decreasing; the average age of the labor force continues to increase. The aging of China’s population has been accelerating and the aging trend is obvious.” 
(2) “Help to bring family happiness and social harmony. In recent years, with structural diversification, the family size has been shrinking; one-child families and elderly people living alone are on the rise; births, support to the elderly, and other basic functions of the family have been weakened.” 
(3) “Help to promote the balanced long-term development of the population. In the early 1990s, China became one of the low birth rate countries. With economic and social development, improvement in the level of urbanization, and a change in the public attitude toward childbearing, women now have fewer total births.” 
Source: Xinhua, December 30, 2014 

China’s Local Government Debt Climbed to 17.9 Trillion Yuan

China’s National Audit Office (NAO) announced on Monday that, by the end of June 2013, local government debt had increased to 17.9 trillion yuan, soaring 67 percent over the figure for three years ago.

According to the NAO’s last figure, for the end of 2010, the total debt of local governments in China was 10.7 trillion yuan. China’s local governments cannot borrow directly from banks. Their debt is built up mainly by establishing some financial entities and using these entities to borrow money for infrastructure projects. Government debt also includes financial guarantees for some projects.

If the debt of the central government is included, the Chinese government’s overall debt is 30.3 trillion yuan, accounting for 53.3 percent of GDP. Some analysts worry that the economic slowdown could lead to an increase in bad debts, thus putting pressure on large state-owned banks. The NAO report also points to an over-reliance on land related fiscal revenue as a cause of the rapid increase in local government debts.

Source: Voice of America, December 30, 2013
http://www.voachinese.com/content/china-local-government-20131230/1820431.html

The 12th Politburo Collective Study: Xi Jinping Stresses Improving China’s Cultural Soft Power

On December 30, the Chinese Communist Party Politburo conducted the12th collective study (of 2013) on the topic of how to enhance China’s national cultural soft power. Xi Jinping presided over the study, stressing that improving China’s national cultural soft power is a matter related to the realization of the "bi-centennial" goals and China’s great rejuvenation the China Dream.

Professor Shen Zhuanghai from Wuhan University and Professor Huang Zhijian from the National Publicity Cadre Institute gave lectures on the subject. 
Xi said that to enhance national cultural soft power, [we] should strive to spread the values of contemporary China, namely, the values of socialism with Chinese characteristics and strive to increase China’s international discourse power. 

Source: Xinhua, December 31, 2013