Monthly News and Views on China

December 1-30, 2016

CHINESE STUDIES CENTRE (CSC), S3H,

NATIONAL UNIVERSITY OF SCIENCE
AND TECHNOLOGY, SECTOR H-12,
ISLAMABAD
 Monthly News and Views on China
December 1-30, 2016
A Picture is worth more than a thousand words

Former Ambassador-earns-distinction-in-global-nobel-prize-foundation

See link http://nation.com.pk/islamabad/16-Dec-2016/pakistan-s-former-

ambassador-earns-distinction-in-global-nobel-prize-foundation

ISLAMABAD: China Create Foundation which is being launched as the

equivalent of Global Nobel Prize Foundation has nominated Pakistan's Former
Ambassador in Germany, Singapore and Mauritius Syed Hasan Javed as a Member
of its Advisory Board. The Board comprises of eminent scientists, scholars,
diplomats and Nobel Prize Winners. Five Prizes and Awards will be awarded to
noted scholars on their achievements in Applied physics, Applied Chemistry,
Literature and Fine Arts, Economics and Innovation. Ambassador Javed is a noted
Sinologist who has served in China for ten years, speaks Mandarin fluently and is
author of several books on China. He is the first Pakistani to be appointed to the
Advisory Board for a period of 3 years, which is holding its Inaugural meeting on
21 December, in Shenzhen.

World's highest bridge opens in Guizhou Xinhua, December 30, 2016

Photo taken on Dec. 29, 2016 shows the Beipanjiang Bridge linking Duge
Township of Liupanshui City in southwest China's Guizhou Province and Puli
Townshp under Xuanwei City in southwest China's Yunnan Province. The 1341.4-
meter-long bridge, soaring 565 meters above a river, opened to traffic on Thursday,
making it the world's highest bridge. (Xinhua/Pu Chao)

CPEC needs such High Altitude Bridges in Gilgit and Baltistan, Pakistan

6th JCC on CPEC held in Beijing China.org.cn, December 30, 2016

The 6th meeting of the Join Cooperation Committee (JCC) on China-Pakistan

Economic Corridor (CPEC) is held in Beijing on 29 December 2016.
[Photo/China.org.cn] The 6th meeting of the Join Cooperation Committee (JCC)
on China-Pakistan Economic Corridor (CPEC) was held in Beijing on 29
December 2016. The meeting was co-chaired by Professor Ahsan Iqbal, Minister
for Planning, Development and Reform (MPD &R) of the Islamic Republic of
Pakistan and Mr. Wang Xiaotao, Vice Chairman of the National Development and
Reform Commission (NDRC) of the Peoples Republic of China. Federal Minister
for Railway Khwaja Saad Rafique, Chief Ministers, Sindh Mr. Murad Ali Shah,
Khyber Pakhtoonkhwa Mr. Pervez Khattak, Balochistan Sardar Sanullah Zehri and
Gilgit-Baltistan Mr. Hafiz Hafeez-ur-Rahman, Special Assistant to the Prime
Minister on Foreign Affairs Syed Tariq Fatemi and Chairman Board of Investment
Dr. Miftah Ismail, besides concerned Federal Secretaries and officials also
participated in the JCC. The meeting was held in a friendly and cordial
atmosphere. Both sides underscored the significant of the CPEC for both countries
to integrate with regional economics and become a model for win-win cooperation.
The two sides reviewed the progress achieved after the 5th JCC meeting and
discussed various issues concerned different projects under CPEC. During the
JCC, Pakistan and China discussed inter-alia; progress on long-term plan for
CPEC, energy cooperation, transport infrastructure, Gwadar and Industrial
cooperation. The two sides expressed satisfaction over the progress achieved on
projects relating to the energy cooperation and transport infrastructure while
emphasizing on the need to speed up the work on projects concerning Gwadar and
Industrial Cooperation. They also discussed the way forward for the effective and
timely implantation of various projects under CPEC. Following the conclusion of
the JCC, the two sides signed minutes of the meetings of JCC and various working
groups including Agreements and MoUs relating to transport infrastructure,
Gwadar and transmission line. It was decided that the next (7th) JCC will be held
in Islamabad next year, the dates for which will be decided by the two sides
through mutual consultations.

Top 10 key economic words in 2016 China Daily, December 19, 2016

China's economy underwent a tough year in 2016 and showed the world its
resilience despite headwinds at home and abroad. With the year coming to an end,
let us take a look at the top 10 key words that tell the stories that made headlines in
the world and China. President Xi Jinping addresses the media on Sept 5 after the
G20 Summit in Hangzhou, Zhejiang province. [Photo by Feng Yongbin / China
Daily]

G20: Under the theme of "Toward an Innovative, Invigorated, Interconnected and

Inclusive World Economy," this year's G20 Summit was held on Sept 4-5 in the
eastern Chinese city of Hangzhou. China has demonstrated unswerving
commitment to globalization, more specifically to defending free trade and cross-
border investment and business cooperation during the summit.

AIIB: After three years in the making, the Asian Infrastructure Investment Bank
(AIIB) officially opened for business on Jan 16, 2016. President Xi called AIIB's
launch a 'historical moment' while addressing the event in downtown Beijing and
said the bank could increase Asia infrastructure investment effectively and
promote regional interconnection and economic integration, which will have a
positive effect on Asian and global economy. Lou Jiwei was elected as the first
chairman of the AIIB council. Jin Liqun was elected the first AIIB president.

Supply-side reform: President Xi Jinping said China's emphasis in 2016 would be

on supply-side reform, or a package of supply-side policies to release new demand
and boost new productivity. He was speaking at the conclusion of the Central
Economic Work Conference, which was held along with the Central Urban Work
Conference in December 2015. The country has made great efforts to fulfill five
major tasks: cutting excessive capacity, destocking, deleveraging, reducing
corporate costs and shoring up the economy's weak links this year. A list of key
economic data released on Dec 13, including industrial output and fixed-asset
investment, pointed to stabilization and restructuring progress in the economy.

Internet plus strategy: China's internet industry has grown exponentially in recent
years. As of June this year, there were 710 million internet users across the
country, accounting for 51.7 percent of its total population, exceeding the global
average by 3.1 percentage points. Internet Plus, an action plan, was first presented
in the Government Work Report in March, 2015. It aims to integrate the internet
with traditional industries and fuel new engines of economic growth. Under the
strategy, conventional industries will be upgraded by integrating new internet and
information technology.

Pension fund: China's pension fund assets totaled 3.99 trillion Yuan at the end of
2015, according to data from the Ministry of Human Resources and Social
Security. On May 1, the national guideline to regulate the management of the
pension fund took effect. It was the first of its kind issued by the central
government. The guideline allows the country's pension fund to invest in more
diversified products with higher risks, such as stocks and private equity funds.

Real estate: China's real estate sales have reached 10 trillion yuan ($1.48 trillion)
in the first 11 months of 2016, China's National Bureau of Statistics announced on
Dec 13. The sales have surged 37.5 percent year-on-year, with a 24.3 percent
growth in floor area sales. China's annual property sales have surpassed the GDP
of South Korea ($1.38 trillion), Australia ($1.34 trillion), and Russia (1.33 trillion),
in 2015. More than 20 major Chinese cities have introduced or resumed property
market curbs since autumn as home prices rose too sharply.

Overseas M&A: China has surpassed the US as the largest source of outbound
mergers-and-acquisition activity as a built-up mainland looks for other investment
opportunities overseas. According to Dealogic, in the first nine months of the year
the total value of mergers and acquisitions (M&A) by Chinese companies jumped
68 percent year-on-year to $173.9 billion. It was the first time China has done
more deals than the US. Dealogic said the US had been the top cross-border
acquirer since 2008.

SDR: Chinese yuan or the renminbi (RMB) has been included into the basket of
special drawing right (SDR) of the International Monetary Fund (IMF) since Oct 1,
marking a milestone in the internationalization of the Chinese currency.

Shenzhen-Hong Kong stock connect: China's stock connect between Shenzhen

and Hong Kong started on Dec 5, following the successful launch of the Shanghai-
Hong Kong stock link in 2014, further opening up the country's capital market.
High-speed rail: Shanghai maglev train (268 mph) and Harmony CRH380A (236
mph) both come from China and are ranked as the second and third fastest train in
a list released by The Telegraph. In 2015, overseas sales of CRRC, the country's
railway vehicle and equipment exporter, reached 26.57 billion yuan ($3.86 billion),
up 67 percent year-on-year, and accounted for 7 percent of total sales. It is seeking
to boost the figure to 35 percent by 2025 (that is, the end of the 14th Five-Year
Plan).

Premier urges efforts to boost development of western China Xinhua,

December 26, 2016

Chinese Premier Li Keqiang has urged greater efforts to promote the sustainable
and healthy development of the country's western regions. China has made
remarkable progress since it initiated a strategy to develop its vast western areas in
2000. The 13th Five-Year (2016-2020) Plan period is a crucial time for western
regions to realize transformation and upgrading, Li said at a conference on Friday.
The country should push forward supply-side structural reform, expand demand
moderately, boost innovation, continue to implement the west development
strategy, and strengthen the coordination of it with other major strategies such as
the Belt and Road Initiative and development of the Yangtze River Economic Belt,
he said. The fundamental way to develop the regions is to enhance their
endogenous growth through innovation and reform and opening-up, Li said. More
efforts should be done to streamline administrative approvals, reduce taxation and
fees, cut transaction costs, improve business environment, promote
entrepreneurship, and encourage private capital to participate in the development
of the western regions. Li stressed the importance of infrastructure construction
and ecological protection in promoting the western regions' sustainable
development. He urged efforts to protect the environment, improve road and water
infrastructure, and ensure the quality of drinking water for rural residents.
Environmentally-friendly industries that can employ a large workforce are
encouraged to move to the western regions. Investors are also encouraged to build
factories there. Li called for efforts to develop advanced manufacturing sector and
emerging sectors, and promote the development of industries with ethnic
characteristics such as medicine and traditional handicraft. He added that in order
to improve people's livelihoods, targeted and precise measures should be adopted
to alleviate poverty. More education and health care resources should be channeled
to the western regions, and basic public services should be increased. The west
development strategy covers 11 provinces and autonomous regions including
Gansu, Guizhou, Ningxia, Qinghai, Shaanxi, Sichuan, Tibet, Xinjiang, Yunnan,
Inner Mongolia and Guangxi, in addition to Chongqing Municipality. The regions
account for more than two thirds of the nation's territory, with a population making
up over 20 percent of the nation's total.

Next Stop: Kashghar-Gwadar/ Kashghar- Karachi

East-West high-speed railway starts operation Xinhua, December 29, 2016

A test train in seen on the Guizhou West section of the Shanghai-Kunming high-
speed railway, Dec. 17, 2016. China on Wednesday put into operation one of the
world's longest high-speed railways, linking the country's prosperous eastern coast
to the less-developed southwest. The Shanghai-Kunming line -- 2,252 km in length
-- traverses the five provinces of Zhejiang, Jiangxi, Hunan, Guizhou and Yunnan
and cuts travel time from Shanghai to Kunming from 34 to 11 hours, according to
China Railway Corporation. (Xinhua/Ou Dongqu)

Key indicators point to stable growth in 2017. By Zhang Lulu China.org.cn,

December 27, 2016

A cargo ship unloads containers at Lianyungang port in Jiangsu province.

[Photo/China.org.cn]

At the recently concluded Central Economic Work Conference, mapping out

economic policies for 2017, the current Chinese economy was analyzed as
"stabilizing and improving," while the tone set for next year's economy is
"maintaining stability while seeking progress. "Key economic figures for 2016
point to stable growth in 2017, when the all-important 19th National Congress of
the Communist Party of China (CPC) will be held while the country's reforms keep
pressing ahead.

GDP growth meets target

The Chinese economy grew by 6.7 percent for the first three quarters of 2016, and
the growth rate of the entire year is expected to achieve that level, meeting the
target of 6.5 percent to 7 percent set earlier in the year. China aims to double its
2010 GDP and per-capita income of residents both in cities and rural areas by
2020, which means the GDP growth from now on should be at least 6.5 percent.
The growth rate of 6.7 percent, therefore, lays a good foundation for meeting the
2020 target. The Chinese economy has already hit bottom and is showing signs of
stabilization, said Qiu Xiaohua, chief economist of Minsheng Securities.

Key economic indicators rebound

Apart from the growth rate, other key economic indicators have also rebounded.
China's Purchasing Managers' Index (PMI) has been expanding ever since August.
The manufacturing PMI came in at 51.7 percent in November, the highest in two
years. The non-manufacturing PMI reached 54.7 percent in November, highest
since July, 2014. The Producer Price Index (PPI) also gained. It rose by 0.1 percent
in September for the first time since early 2012. The PPI in November increased by
3.3 percent year on year, a record in the past five years. The continuing rebound of
PPI and PMI show the Chinese manufacturing industry is fairly active and that
demand for manufactured goods is increasing, said Lian Ping, chief economist of
Bank of Communications, who added that it would encourage businesses to
increase investment. Exports and imports have also improved in the first three
quarters. Exports rose 5.9 percent year on year in November, while imports
continued to pick up steam, increasing 13 percent, highest in three years. The main
business profit of companies with annual revenue of more than 20 million yuan
(US$2.89 million) rose by 8.6 percent from January to October, the fastest growth
since August, 2014.

'Livelihood indicators' improve

Livelihood-related data have also shown signs of stabilization and improvement.

The government increased spending by more than 14 percent in the first three
quarters on social security and employment, medical care and family planning,
affordable housing and other key welfare areas. Per capita disposable income in the
first three quarters grew by 6.3 percent, outpacing CPI. The income gap between
urban and rural residents continued to shrink to 2.82. A total of 12.49 million jobs
were created in urban areas from January to November, meeting, ahead of
schedule, the target of creating 10 million new jobs this year. The urban registered
unemployment rate remained below five percent for three months in a row.

No 'hard landing' in 2017

As more signs point to stabilization, the Chinese economy is widely believed to be

in no danger of a "hard landing" in 2017. A report by the Chinese Academy of
Social Sciences predicts the Chinese economy will grow by around 6.5 percent
next year, jobs and prices would remain stable and there would not be any hard
landing. The World Bank and the Asian Development Bank in recent months have
projected the Chinese economy to grow by 6.5 percent and 6.4 percent next year.
The Liaoning deployed to distant sea waters CNTV, December 27, 2016.

China's first aircraft carrier has set off to the Western Pacific as part of a routine
series of drills taking place in the East China Sea. It is the first time the Liaoning
aircraft carrier will be deployed to 'distant sea waters' and break away from the
strategically positioned Island Chain concept.

The Liaoning deployed to distant sea waters. [File photo]

Details of the location, route and duration have not yet been revealed. The exercise
comes amid tense times between Taiwan and the Chinese Mainland. Military drills
have been carried out periodically in the East China Sea since 2012.

Shenzhou-11 astronauts honored with medals Xinhua, December 27, 2016.

Two astronauts of the Shenzhou-11 spaceflight mission were awarded medals for
their service to China's space endeavors.

Shenzhou-11 astronauts Jing Haipeng(left) and Chen Dong.[Photo: Baidu]

Jing Haipeng, 50, commander of the Shenzhou-11 spacecraft, was honored with a
first-class aerospace achievement medal, and Chen Dong, 38, was conferred a
third-class medal and the honorary title "heroic astronaut." Launched on Oct. 17,
Shenzhou-11 docked two days later with China's first space lab, Tiangong-2, where
the two astronauts lived for 30 days, the longest time Chinese astronauts have
spent in space. It was the third space mission for Jing, who also participated in the
Shenzhou-7 and Shenzhou-9 missions. It was Chen's first space mission. The
Shenzhou-11 mission is part of China's ambitious plan to build a permanent
manned space station

Beijing's 1st maglev line to run Xinhua, December 26, 2016

A technician introduces Beijing's first medium-low speed maglev Line S1 in

Beijing, capital of China. The Line S1, which connects the city's western district of
Mentougou to the Pingguoyuan subway station in Shijingshan district, is expected
to begin operating in 2017. With a maximum speed of 100 kilometers per hour, the
train will stop at eight stations and serve about 1,302 passengers at a time.
(Xinhua/Luo Xiaoguang) US$500b to boost high-speed rail plan

In the next five years, China will invest 3.5 trillion yuan ($503 billion) to
accelerate railway construction, including expansion of the country's high-speed
rail network to 30,000 kilometers, a senior official said on Thursday.

Most trains in NW China's Xinjiang to offer free WiFi Xinhua, December 27,
2016

Most passengers traveling by trains administered by railway bureaus in northwest

China's Xinjiang Uygur Autonomous Region will be able to enjoy free wireless
network access starting from this year's Spring Festival travel rush. Passengers
aboard non-high-speed, air-conditioned lines to and from Xinjiang can also surf the
web for movies, news and online games by verifying their mobile phones starting
Monday, said the Urumqi Railway Administration on Tuesday. Most routes
operated by railway bureaus in Xinjiang will provide onboard WiFi services as part
of an initiative to improve the experience of passengers on the often long, tedious
trips. Inter-city and direct express trains in the region already offer WiFi services.
WiFi was first introduced on Xinjiang's inter-city trains in 2015. In September this
year, direct express trains from Xinjiang to Beijing, Shanghai and Guangzhou also
started providing the services.

Payment services make global expansion push China Daily, December 26,
2016

That's the logo of Alipay, the fast-growing mobile payment service of China's e-
commerce giant Alibaba. China's top wireless payment providers are tapping into
the international market in the footsteps of globe-trotting and big-spending Chinese
visitors. Alipay has emerged a front-runner. Created in 2004 as a tool to facilitate
transactions on Alibaba's Taobao e-commerce site, it is now accepted by more
than 100,000 merchants overseas, according to a report from Ant Financial, the
division of Alibaba that owns Alipay. Ant Financial banks on its 450 million users
in China as it rolls out business abroad. Alipay handled around half the estimated
$738 billion Chinese spent online last year by offering an escrow service in
collaboration with overseas partners such as banks, financial institutions and online
payment providers, according to iResearch. In Finland, Alipay is accepted by over
100 merchants, including hotels, shops and restaurants, through a partnership with
local mobile payment firm ePassi. In Germany, its partnership with payment
processing service Concardis gives it access to more than 200,000 local merchants.
Alipay also works with BNP Paribas, Barclays, Yusin Bank, SIX, Wirecard,
Ingenico Group and other agencies in Europe, which helps it cover some 930,000
merchants in the continent. In Japan, where Chinese tourists often buy expensive
household electronics products, jewelry and cosmetics, Alipay is available at
nearly 3,000 vendors. To quench the thirst of wealthier Chinese buyers, Alipay was
introduced to 10 major overseas airports across Germany, Japan and New Zealand
in October. Departure tax refund services processed by Alipay are also available in
23 countries. It can be used to pay for Uber and Grab ride services in 70 countries.
China's BigData-Research found that transactions via mobile payment services,
worth 9.3 trillion yuan (US$1.3 trillion) in 2015, are expected to increase to 15
trillion yuan in 2017.

World's biggest Single Coal-to-Liquid Project in production in Ningxia

Xinhua, December 29, 2016

The world's biggest single coal-to-liquid (CTL) project went into production
Wednesday in northwest China's Ningxia Hui Autonomous Region.The project,
undertaken by a subsidiary of the state-owned Shenhua Group, consists of
homegrown technology, equipment and materials, breaking the longtime foreign
monopoly in CTL core technology. Chinese President Xi Jinping congratulated
Shenhua Ningxia Coal Industry Group on the start of the project. He described it as
a "useful exploration" of secure, effective, clean and low-carbon energy
development and a major result of the country's innovation strategy. It will help
promote clean and effective use of coal, improve China's ability to guarantee
energy security, and boost regional development, Xi said. China has rich coal
resources but lacks oil and gas. Currently more than 60 percent of its oil is
imported. The National Energy Administration estimates that China will need 610
million tonnes of oil in 2020, 68 percent of which would have to be imported.
The project drew an investment of about 55 billion yuan (7.9 billion U.S. dollars).
It is able to turn more than 20 million tonnes of coal to 4 million tonnes of oil
products annually, including 2.7 million tonnes of diesel, 980,000 tonnes of
naphtha petroleum and 340,000 tonnes of liquefied gas, according to Yao Min,
deputy general manager of Shenhua Ningxia Coal Industry Group. "Coal-to-liquid
technology provides another solution to China's lack of oil," Yao said. Byproducts
include 200,000 tonnes of sulfur, 75,000 tonnes of mixed alcohol and 145,000
tonnes of ammonium sulphate, Yao said. "If the oil products are promoted in first-
tier cities like Beijing and Shanghai, they will help reduce car emissions and tackle
the problem of smog," Yao added. A trial use of the diesel made from coal on
Beijing's sanitation vehicles showed significant declines of emissions of pollutants,
according to Cai Lihong, who takes charge of the project's construction. Spending
on environmental protection in the project totaled 6.2 billion yuan, or more than 11
percent of the total investment.

China contributes to over 70% of global poverty reduction Xinhua,

December 28, 2016

The number of Chinese people lifted out of poverty in the last 30 years accounts
for more than 70 percent of the world's total, according to a blue paper on poverty
reduction released Tuesday. Since 1978, China has made great achievements in
reducing poverty. From 1978 to 2015, the rural population of China in poverty
decreased from 770 million people to 55.75 million, said the blue paper co-
produced by the Chinese Academy of Social Sciences and State Council Leading
Group Office of Poverty Alleviation and Development. Based on the international
poverty line which the World Bank updated to 1.9 U.S. dollars per person per day
(in purchasing power parity) in 2011, the world's poverty population reduced by
1.1 billion people from 1981 to 2012. During the same period, China took 790
million people out of poverty, 71.82 percent of the world total. The paper also
analyzed the challenges faced by China in building an all-round moderately
prosperous society. Follow China.org.cn on Twitter and Facebook to join the
conversation.
Director CSC Ambassador (R) Syed Hasan Javed delivered Key-note speech at a
Seminar Bahria University Karachi on the theme China Pakistan Economic
Corridor Road to Future on Tuesday 29 November, 2016.

Director CSC Ambassador (R) Syed Hasan Javed delivered Key-note speech at the
Institute of Bankers, Karachi on Friday 16 December, 2016 on China Pakistan
Economic Corridor Its Economic and Growth potentials for Pakistan and the
Region. Chairman and CEO IBP giving Shield on this occasion.

Director CSC Ambassador (R) Syed Hasan Javed has been appointed to the
Advisory Board of China Create Foundation, in Shenzhen for the award of Chinas
Nobel Prizes for outstanding research in the fields of Applied Physics, Applied
Chemistry, Applied Economics, Literature/Fine Arts and Innovation. The Five
Awards are valued each at RMB 8 Million (equivalent to US$ 1 Million plus).
 HAPPY NEW YEAR 2017

Note: The Centre welcomes visits by Chinese and Pakistani delegations,

students, researchers, experts etc. for mutual exchange of views for promotion of
goodwill, understanding and collaboration. I will request you to put our contact
details for your kind reference and facilitation, in order to add value in your own
work, relating to cooperation with China.

Ambassador (Retired) Syed Hasan Javed

Director, Chinese Studies Centre

Tel Off: +92 51 90853870 F +92 51 90853502 M +92 305 2413648

E-mail:[email protected] OR [email protected]

School of Social Sciences and Humanities (S3H)

National University of Science and Technology, Sector H-12

Islamabad 44000, Pakistan

______________________________________

:+92 51 90853870:+9251 90853502:+92 305 2413648

[email protected] [email protected]

(S3H

H-12

44000