On Chinese Media

South Reviews

Issue No.5， published on February 27

Worlds Factory of the 21st Century？

Of all the smart phones produced globally， about 60 percent are assembled in China. After years of toil， China is now world No. 2 in terms of GDP， and seems likely to take over the No.1 spot in the next five to six years. Isnt that grand？

The “worlds factory” development model has helped China achieve fast GDP growth. But does this signify the models success？ Does Chinas economic growth imply that the country is growing ever stronger in the world arena？ There are no sure answers to many such questions. Further discussion and research is needed.

The focus of this issues special report is on two matters within the scope of national interests and developmentalism. One is that Chinas development model faces pressure. It will be difficult to sustain the current model unless the so-called“worlds factory” upgrades. Doing so， therefore， is extremely urgent under the current situation. The second is that efforts to explore the codes behind global development and governance are essential. China is a large country and cannot remain constantly on tenterhooks. On the one hand， China must solve the pressing problems it faces. On the other， the country needs to adopt a long term view through understanding and participating in the rules of global governance.

Insight China

Published in early March， 2014

How Can China Solve the Problem of Old Age Pensions？

Intent upon establishing a unified pension scheme by 2020， China has already established the worlds biggest pension insurance system covering most of its urban and rural population， eight years ahead of schedule.

Although a small step towards the envisioned pension scheme， this is a great stride towards Chinas future urban and rural integration. Upon unification， the pension scheme in urban and rural areas will cover around 500 million people – almost equivalent to the entire E.U. population. But， is it possible to raise pensions？ How can the transfer of individual pensions be achieved？ What responsibilities does the government shoulder？ Having acclaimed the establishment of a unified pension scheme， many such questions are still to be answered.

Laoting County， which has entered the aging society 20 years ahead of other places around the country， is a source of valuable experience for other regions heading in the same inevitable direction. It can provide guidance on how the government purchases elderly care services， and how enterprises realize marketized operation in this regard. These are matters that demand deep consideration.

Insight China also focused on a private nursing home to observe first-hand the development and problems of the existent pension scheme.

Oriental Outlook

Issue No.11， published on March 20

Haze Changes Chinas Political Environment

Proposals and suggestions on environmental issues during the annual National Peoples Congress （NPC） and Chinese Peoples Political Consultative Conference（CPPCC） sessions in March 2014 outnumbered those on any other topic. Of greatest concern is the haze enveloping China.

At his meeting with Guangdong NPC deputies， President Xi Jinping asked： what is the PM2.5 level in the Pearl River Delta？

In his first government work report， Premier Li Keqiang declared war on pollution， calling on the country to “fight it with the same determination we battled poverty.”

At the end of February， a week-long intense haze covered about 15 percent of the country. It triggered a wave of questions， such as is the environment an inevitable sacrifice to developing the economy？ And can economic development at the expense of the environment bring people happiness？ The haze has thus intensified the sense of urgency on environmental issues. When air quality falls to the point where breathing is a labor， the haze is no longer a matter of the environment， technology or science， but Chinas biggest political issue.

Securities Market Weekly

Issue No. 19， published on March 21

Stock Market Backs China

Qi Bin， director of the Research Center of the China Securities Regulatory Commission （CSRC）， said recently that the book The Great Game： The Emergence of Wall Street as a World Power by John Steele Gordon reveals that the pushing hands of capital have been behind every phase in the rise of the U.S. In other words， the capital market and the rise of a power are closely linked.

Thus far， the capital market still plays a decisive role in the U.S. addressing the financial crisis. It therefore serves as a valuable point of reference for China. The intrinsic quality of all financial crises is that of a balance sheet crisis. The differences lie in the various departments that triggered the crisis. In the short term， Chinas growth faces the risk of falling to less than seven percent. It therefore needs a degree of stimulation to secure backing. Moreover， local governments and enterprises face deteriorating balance sheets in the long term， and their huge debts require substantial deleverage. This will influence the quality of bank credit and exacerbate downward economic pressure.

Carrying out a simple deleverage is a painful process that entails a continuous economic downslide. How is it possible to restore the balance sheet while easing the pain？ The process through which the U.S. set its balance sheets to rights after the financial crisis will provide both a point of reference and source of inspiration.