China Update – April 26, 2011

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In This Issue

The Party’s Leadership Is Essential to the Success of China’s Socialist Legal System [Featured Report]

VOA: High Cost Drives Chinese Exporters to Leave Coastal Provinces [Briefing]

China to Strictly Control Water Consumption [Briefing]

Chiefs of General Staff of SCO Member Countries Meet in Shanghai [Briefing]

FE1 The Party’s Leadership Is Essential to the Success of China’s Socialist Legal System

The following article by a Xinhua special commentator reminds people of the relationship between the Communist Party and China’s legal system. Echoing a recent speech by Wu Bangguo, Chairman of the National People’s Congress, the author stressed, “We must resolutely uphold the Party’s leadership." … [Full Text]

China Update – April 26, 2011

Briefings: Following major developments from Chinese language media not generally available to the West

BR1 VOA: High Cost Drives Chinese Exporters to Leave Coastal Provinces

Voice of America (VOA) recently reported that Chinese export businesses are planning to leave coastal provinces for inland locations or other countries. The report gave the example of the Apple iPhone OEM (Original Equipment Manufacturer) vendor FoxConn’s plan to invest US$12 billion to open new plants in Brazil. With salary increases, raw material price increases, and currency appreciation, the exporters’ production costs are growing steadily. A global supplier in Hong Kong estimates there will be a 15% increase in the price of Chinese exports. Although the government is encouraging the businesses to move their plants to inland provinces, the concern is that the increase in transportation costs to access sea ports will eat up the savings. Moving manufacturing lines to locations in nearby countries like Vietnam and Indonesia may become easier choices for their existing infrastructures.

Source: Voice of America, April 20, 2011

BR2 China to Strictly Control Water Consumption

The Chinese Minister of Water Resources, Chen Lei, recently spoke at a forum, stressing a strict control of the nation’s annual water consumption. The goal set for the year 2015 is 635 billion cubic meters; it is 670 billion for the year 2020. The Ministry is speeding up the process of defining national water consumption standards for high-water-consumption industries and for the service industry. Chen also emphasized that it is very important to protect drinking water sources and underground water. He said China has the most difficult water management situation in the world. The next step is to hold heads of local governments responsible for enhancing water management supervision and for implementing the administrative system.

Source: China News Service, April 15, 2011

BR3 Chiefs of General Staff of SCO Member Countries Meet in Shanghai

On April 25, 2011, the Shanghai Cooperation Organization (SCO – founded in 2001 by the leaders of China, Kazakhstan, Kyrgystan, Russia, Tajikistan, and Uzbekistan) held a conference for the Chiefs of the General Staff in Shanghai, as part of the agreement of the Tashkent Summit of SCO Heads of State. China initiated the conference; it will be the first of its kind since SCO was founded ten years ago. Chen Bingde, China’s chief of the general staff of the People’s Liberation Army and also the host of the conference pointed out that, over the past 10 years, defense and security cooperation among SCO member states has been fruitful; mutual military trust has deepened; laws and regulations have continued to improve; the cooperation mechanisms have developed; and joint anti-terror exercises have been effective. SCO defense ministers signed a cooperation plan last month for the period 2012-2013.

Source: Xinhua, April 22, 2011

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