HANGZHOU – Two brothers and their father were sentenced to death on Monday for cheating 15,000 investors out of over $1.1 billion in east China’s Zhejiang province. Ji Wenhua, president of the Yintai Real Estate and Investment Group, was sentenced to death for the crime
Dan Collins CMR “Gold going to $7,000”, an article today in the Chinese media is going viral and one of the most viewed articles in the financial press. The article references American Jim Rickards and his concept of comparing inflation-adjusted gold prices. Most Chinese economists
It’s not uncommon for the large Wall Street banks to combine in shorting an entire years supply of minded silver in a single day.The same goes for all commodities. Endless paper printing getting funneled to Wall Street has destroyed all real price discovery. Capitalism fails
Dan Collins CMR When I moved to China back in 1998 I was surprised to learn how highly the Chinese thought of America. Of course China was a much poorer place back then but coming from the Detroit area I couldn’t fathom where was all
Chanos is back! His short China thesis is very long in the tooth but as it goes with most ego maniacs he cannot accept failure or that fact that he might be wrong. Being wrong on an entire country where you have never visited and
You have to laugh at the whole “China will collapse crowd” on CNBC and even respected sites like Zero Hedge. Personally, I love the Zerohedge stuff. They understand the ponzi-financial fraud-money printing-welfare state economy that now envelops the West. But China is a real economy,
D.Collins CMR China’s cloud computing market is expected to be worth 37.2 billion yuan (US$6 billion) in 2017 as demand for the service grows, the Chinese-language China Securities Journal reported on Friday. Some American tech companies are watching the largest and fastest I.T. market in
Breaking News today that a Chinese vessel as rammed and sunk a Vietnamese fishing boat. All countries in the South China Sea and East China Sea are using fishing boats in a game of cat-and-mouse to challenge each other on their respective areas. This time
Stockswatch China has become a banking powerhouse. Four of the five largest banks in the world are Chinese, according to SNL Financial’s latest global bank rankings. It’s a big change from the past few years when only two Chinese banks made the top five. Beijing-based
Scared of losing the Chinese tourist dollar, France has relented to China and will allow Chinese police on the streets of Paris. More signs of the benefits of third-world immigration into the West to the point where cultural breakdown has occurred and law and order
Gold has been flowing East for a decade. When the West wakes up to the fact that their gold is gone, they will no longer have sound money with which to back a currency. The world has only been off a gold standard since 1971
From the China Daily… BEIJING – China will lower banks’ reserve requirement ratio (RRR) by 0.5 percentage points starting May 18, the country’s central bank announced Saturday. The cut, the second of its kind this year, will drop the RRR for the country’s large financial
Is China tweaking its numbers on GDP? Probably. For twenty years Chinese GDP roughy came in right on the governments target. This would be an almost magical performance record considering economists in the West can predict absolutely nothing. For years, China most likely lowered GDP
Japan will learn the hard way that destroying your currency is not an viable economic strategy. Shanghai Daily JAPAN posted a record 1.63 trillion yen (US$17.4 billion) trade deficit in January as rising exports trailed surging imports of crude oil and gas due to rising
One year after the launch of direct trading between the renminbi and Japanese yen, the daily trading volume between the two currencies has reached 50-100 billion Japanese yen on the Shanghai market and 15 billion yen on the Tokyo market, a combined volume double that
China to approve 7 more Free Trade Zones. U.S. economy continues to languish under worlds highest corporate tax rates.
Free Trade Zones in Detroit, Cleveland, Memphis, Buffalo, etc…
You could transform these cities overnight. But the U.S. will not do that
as the country suffers from a “cancer of the heart” in wanting to take down
anyone who builds something. Soak the rich so to speak. How dare someone employee
somebody. That is in direct competition with the government getting them on the
welfare system. 47% and counting are collecting a government check in the U.S.
Rationality left the U.S. long ago. The U.S. continues down the road to serfdom.
BEIJING – General plans for China’s third group of free trade zones (FTZs), announced in August, will be approved soon, the Shanghai Securities News reported Monday, the latest step in the country’s expanding FTZ network.
In August, China approved the establishment of seven new free trade zones, including coastal Zhejiang and Liaoning provinces and the landlocked provinces of Henan, Hubei, Sichuan and Shaanxi as well as Chongqing municipality, as the country looks to replicate the success of previous trials.
The total number of FTZs now stands at 11 after the first one was founded in Shanghai three years ago and a second group was established in coastal Tianjin, Fujian and Guangdong in late 2014.
According to Minister of Commerce Gao Hucheng in August, Liaoning province in Northeast China will focus on market-oriented reforms to transform the old industrial base into a more competitive area, while Zhejiang is expected to explore trade liberalization of commodities and improve its abilities in the global distribution of commodities.
Central China’s Henan will tap its potential in transportation and logistics, and Hubei will build high-tech bases and facilitate the development of the Yangtze River Economic Belt.
China hopes the FTZs in Chongqing, Sichuan and Shaanxi, all in the country’s less developed west, will help open the regions to bring out their economic vitality.
FTZs are part of government efforts to test reform policies, including interest rate liberalization and fewer investment restrictions, to better integrate the economy with international practices.
Among the successful trials in the first two groups of FTZs has been the introduction of a “negative list,” which specifies investment sectors off-limits to foreign investors and allows industries not on the list to follow the same new investment rules as domestic firms.
Encouraged by the results, China is considering expanding the approach nationwide.
Bloomberg published an article today which shows some in the media are waking
up to the massive global boom in M&A coming out of China. What they are not
connecting, however, is the cause or danger to indigenous industries in
the West. In capitalism, the productive and efficient replace the weak and
inefficient. This is no longer the case.
In many of these recent Chinese M&A deals, it is state-owned money
being crammed into both state-owned enterprises and public enterprises to buy
up foreign assets and control more of the global supply chain and technology.
Inefficient companies with low technology are acquiring high-tech firms whom
are generally very efficent. The money coming out of China is just to large to
say no to for the acquired firms stockholders.
Indeed, China buying up these companies are a form of real assets with know-how
and productive capacity that can achieve rent-seeking returns in the West and
upgrade domestic know-how in the China market. It is a much smarter bet than
buying more U.S treasuries which China has not added significantly to its
stockpile since 2009.
One case, in point. When low-end Geely automotive bought into Swedish car maker,
Volvo, the acquisition was worth 3 times the value of the acquiring company itself.
The money and credit to acquire Volvo of course coming from the local government.
China is flush with cash but its corporates not so much. They are being given access to
credit worth hundreds of billions to buy up corporate titans around the world.
The article is here..
How China’s Dealmakers Pulled Off a $207 Billion Global Spree
President Rodrigo Duerte has just announced that the Philippines is leaving the
orbit of U.S. influence. The entire Asian-Pivot, the plan to move 50% of U.S.
Naval and Airforce assets (outside of the U.S.) to Asia and ring China with
missile bases is in tatters.
The Philippines is the first, but will not be the last country in the region
to declare they are in the “China camp”. Indonesia is also quickly moving towards
China. Well, at least the U.S. still has Vietnam…oh wait, I hope they don’t hold
that whole Vietnam war thing against us.
According to Reuters, $13.5 billion in deals will be signed by Duerte during this
China trip. That represents about 5% of the countries entire GDP. Chinese companies
will flood in building ports,high-speed rail, telecom networks, and factories of
all types. The U.S has lost influence as it as let its real economy go.
The Philippines doesn’t need anything American companies can provide,it needs
infrastructure and a developing economy. President Duerte was quoted in a speech,
“How can you be the most powerful industrial country when you owe China and you
are not paying it?”
So …let’s do the math. China had 120 million outbound tourists in 2015 and the
Philippines had close to 20% of its workforce and 20% of its GDP tied to tourism.
The Philippines only received roughly 5 million tourists in 2015, China will be in a
position to double or triple the tourism industry of the Philippines by encouraging
Chinese tourist companies to route big spending Chinese tourists to the islands.
You can also imagine the casinos of the Philippines are also chomping at the bit as
Duerte is also expected to announce visa-free travel for Chinese citizens.
Americans meanwhile have new strict rules and must obtain a visa if staying longer
than 7 days.
So , for my investor friends out there, how to play this? The Philippine currency will
be attacked on the global currency markets by the Western intelligence agencies in a bid
to bring down Duerte. Let it unfold, then go long on Philippines tourism and the currency.
New loans by Chinese banks in September surged nearly 30 percent from the previous month, official data showed Tuesday, deepening concern about risky credit expansion in the world’s second largest economy.
New loans extended by banks jumped to 1.22 trillion yuan ($181.3 billion) last month from 948.7 billion yuan in August, said the People’s Bank of China, the central bank.
Beijing has relied on stimulus measures such as loose credit to boost the economy, which faces a tough structural transition and sluggish global demand. But the rapid rise in borrowing has sparked alarm.
The International Monetary Fund warned earlier this month that China’s dependence on debt was growing at a “dangerous pace” and called on Beijing to curb credit growth.
“By maintaining high near-term growth momentum in this manner, the economy faces a growing misallocation of resources and risks an eventual disruptive adjustment,” it said.
China is set to release a set of economic indicators on Wednesday, including third-quarter GDP growth, industrial output and retail sales.
While the lingering effect of earlier easing may prop up growth in coming months, Beijing is expected to slow down the pace of lending, Capital Economics China economist Julian Evans-Pritchard said in a response to the latest figures.
“The focus of policymakers has shifted away from immediate growth concerns toward containing credit risks,” he said.
Economists have warned that the ballooning borrowing could risk sparking a financial crisis as bad loans and bond defaults increase.
China’s total debt hit 168.48 trillion yuan ($25 trillion) at the end of last year, equivalent to 249 percent of GDP, the China Academy of Social Sciences has estimated.
ANZ Research also predicted that loan growth may cool down in the fourth quarter as local governments tighten restrictions on a red-hot housing market.
U.S. automaker General Motors Co made its first investment in a Chinese car-sharing start up, the company said on Tuesday, as its attempt to reshape itself as a mobility solutions company spreads around the globe.
A GM spokeswoman declined to disclose the size of the investment in Yi Wei Xing (Beijing) Technology Co Ltd, which developed Feezu, a car rental and car-sharing app.
“This cooperation is very important to our company to explore ride-sharing market in China,” the spokeswoman said in an email to Reuters. “It is GM’s first investment in a start-up in China related to urban mobility.”
GM is “looking at our footprint in China and opportunities there, and Yi Wei Xing is a step in that direction,” said Vijay Iyer, GM spokesman for the Maven car-sharing service and based in Detroit, in a telephone interview on Wednesday. “How that will ultimately show itself in a service perspective is in the exploration phase.
“We are now purchasing technology in that market to be able to deliver ride-sharing experiences and we’ll take it from there,” he said.
GM and other major global automakers have rushed to team up with technology companies as services like ride hailing and car sharing pose a threat to the traditional model of car ownership.
This year GM made a $500 million investment in U.S. ride-hailing company Lyft, while Japan’s Toyota partnered with Uber [UBER.UL] and Germany’s Volkswagen (VOWG_p.DE) tied up with Israel-based car-hailing firm Gett.
Yi Wei Xing did not respond to requests for comment.
Feezu, whose Chinese name translates as “micro car rental,” allows users to rent vehicles for as little as 10 minutes. The app differs from services like Uber and Lyft that primarily hail cars with drivers
(Washington) — The head of China’s central bank said the country will put in place “certain controls over credit growth,” signaling a squeeze on liquidity that has been blamed for the property sizzle in dozens of major cities across the country.
Zhou Xiaochuan made the comments at a meeting of the IMF board — the International Monetary and Financial Committee — on Saturday.
New loans in August reached 948 billion yuan ($142 billion), more than double the figure a month before, data from the People’s Bank of China showed. Over 71 percent of the loans went to households, mainly to fund mortgages.
“China will use various policy instruments to keep banking liquidity at an adequate level and allow credit and total social financing to grow at a steady and moderate pace,” Zhou said in a written statement published in connection with the meeting in Washington.
Investors armed with cheap credit have flocked to China’s property market in recent months, and home prices in 70 major cities rose 7.5 percent in August compared with a year earlier, according to China’s National Bureau of Statistics.
Zhou had warned earlier against the emergence of housing bubbles. Speaking at the G20 meeting of finance ministers and central bank governors in Washington on Thursday, Zhou said the government has already enacted policies to develop “a healthy property market.”
About 20 Chinese cities tightened home purchasing requirements in late September to cool an overheated market, with some prohibiting property developers from selling homes to residents who don’t have a local hukou, or residency registration, and to those who already own more than one home. Other cities have raised the minimum down payment required.
Zhou also proposed controlling credit growth to corporations by “lowering corporate leverage and dealing with piling debt through market-based approaches, such as debt restructuring, debt-to-equity swaps, securitization, and liquidation.” This came after the IMF warned that the country’s growing debt “posed risks to financial stability.”
China’s gap of credit to gross domestic product, taking into account loans to the private sector excluding financial institutions, was 30.1 as of March, according to the Bank for International Settlements, a governance body comprising representatives from central banks from around the world. China’s gap was highest among all 43 economies monitored by the financial watchdog. A debt level above 10 signals a potential crisis, according to the agency.
China’s economic downturn and overcapacity in certain heavy industries have resulted in a group of “zombie companies” that are struggling to survive and repay debt.
Zhou said that although the bad-loan ratio in the banking system has risen, the overall risks are “controllable” because banks have sufficient reserves to deal with them.
China has sentenced the former Communist Party boss from the southwestern province of Yunnan to death for bribery with a two-year reprieve — the latest official to fall in President Xi Jinping’s sweeping war on graft.
Bai Enpei illegally amassed over $49 million in assets, court said
He was handed a reprieve due to admitting his crimes, expressing regret
Dozens of senior officials have been jailed in President Xi Jinping’s campaign
A court said Bai Enpei, 70, abused his posts, including as party chief in Yunnan until 2011, and earlier as the top official in the western province of Qinghai, illegally amassing more than $49 million in assets.
Bai was handed a two-year reprieve, as he had admitted his crimes and expressed regret, and because the assets were recovered in full, the court said.
Typically death sentences are converted to life imprisonment subject to good behaviour.
“The amount of bribes Bai Enpei accepted was huge, the details of his crimes extremely serious, and their social impact especially pernicious,” the Anyang city intermediate court in the central province of Henan said on its official blog.
The U.S. defense structure has been planning for years to contain China
with an “Asian Pivot strategy” which means basically grouping all countries
around China into a blocking organization. The TPP trade agreement is the
economic arm of the TPP. An economic trade agreement which includes all of the
countries around China, with the exception of China, the world’s largest economy
on a PPP basis. The military arm of the Pivot including the planned re-opening
of Naval bases in the Philippines and working together with Japan, Korea, and
the ASEAN countries to militarily contain China.
What the U.S. has not planned for is the loss of economic and military clout
among the countries around China. The economic clout of China is in process of
overwhelming the Asia-Pacific region. Now, the fulcrum country of this
pivot strategy is in process of breaking -away from the United States where
it is perceived weak both economically and military weak.
Philippine leader Rodrigo Duterte on Tuesday told U.S. President Barack Obama to
“go to hell” and said the United States had refused to sell some weapons to his
country but he did not care because Russia and China were willing suppliers.
In his latest salvo, Duterte said he was realigning his foreign policy because
the United States had failed the Philippines and added that at some point, “I
will break up with America”. It was not clear what he meant by “break up”.
During three tangential and fiercely worded speeches in Manila, Duterte said the
United States did not want to sell missiles and other weapons, but Russia and
China had told him they could provide them easily.
“Although it may sound shit to you, it is my sacred duty to keep the integrity
of this republic and the people healthy,” Duterte said.
“If you don’t want to sell arms, I’ll go to Russia. I sent the generals to Russia
and Russia said ‘do not worry, we have everything you need, we’ll give it to you’.
“And as for China, they said ‘just come over and sign and everything will be delivered’.”
China’s manufacturing prowess is spilling into gasoline refining which threatens
to squeeze margins on refining. Old U.S. refineries with outmoded equipment and
straight-jacket regulatory processes will not be able to compete.
China’s Gasoline Exports Surged to Record High in June
In June, China exported 1.1 million tons of gasoline, or around 269,000 barrels a day
HONG KONG—China’s exports of gasoline hit an all-time high in June as local refiners are aggressively shipping out their surplus barrels to alleviate bloated inventories.
In June, China exported 1.1 million tons of gasoline, or around 269,000 barrels a day. The volume is 42% higher than last month and more than double the amount a year earlier, according to data released Thursday by China’s General Administration of Customs.
As China’s output of gasoline outpaces demand, analysts say it is no surprise that the country is cranking up exports of the fuel mainly used in automobiles.
“The problem is not consumption because consumption has been fine. The refiners have just over done it,” said Peter Lee, a BMI Research energy analyst.
What worries investors is that as China inundates the market with oil products, regional refining margin will suffer. In the first quarter of this year, regional refining margin averaged around $5 to $6 a barrel, but could drop to around $3 a barrel in the third quarter, said CLSA analyst Nelson Wang.
“The weakening margins means refiners in China, South Korean and Japan, will have no choice but to pull back production in the third quarter, if not, early fourth quarter,” said Mr. Lee.
Much of the increase in Chinese refined-product exports is because of shifts in the way the domestic industry is regulated. Beijing has more than doubled the amount it allows refiners to sell abroad this year, according to Energy Aspects data.
The resurgence of China’s independent crude refiners, known as “teapots,” has also been key. Last year, Beijing allowed these teapots to directly import crude from abroad for the first time, rather than having to buy more expensive crude from domestic state-owned oil companies.
Their subsequent ramp-up in production has provided big state-owned refiners such as Sinopec and China National Petroleum Corp. with greater competition at home, leading them to sell more abroad.
In June, China’s exports of diesel hit 1.1 million tons, equivalent to a 64% on-year rise. In the first half of the year, China’s diesel exports more than tripled to 6.6 million tons.
The surge in China’s refined-products exports isn’t the only thing worrying analysts. Last month, China’s imports of crude dropped to a five-month low of 30.62 million tons — a 3.8% rise. In the first half of the year, China’s crude buying rose 14.2% to 186.5 million tons.
The lower volume is mainly due to longer transportation time due to congestion at the ports, as well as some refiners undergoing annual maintenance, analysts say.
“Many of the teapots used a bulk of their import quotas in the beginning of the year, so it makes sense to see their buying taper off,” said Mr. Wang.
However, as refiners are now required to keep at least 15-days’ worth of crude in their inventories, combined with the government’s efforts to fill the strategic petroleum reserve, China’s crude demand could still remain robust in the coming months.
CHINA’S direct investment in the United States reached a record US$8 billion last year as Chinese firms continued to expand overseas.
Investment in the US accounted for 5.5 percent of its total outbound direct investment, with manufacturing attracting the most — US$4 billion, up 122.2 percent year on year — according to a report by the Ministry of Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange.
Chinese firms carried out 97 mergers and acquisitions in 2015, worth US$13.1 billion, the report said.
Of existing investment in the US, manufacturing also accounted for the largest share — 26.3 percent — with a total value of US$10.7 billion.
The majority of that investment went to car making, ferrous metal smelting, medicine and transport equipment manufacturing, the report said.
The country’s non-financial outbound direct investment hit US$146 billion dollars last year, exceeding the US$136 billion in foreign direct investment it received and making it a net capital exporter for the first time.
Ziad K. Abdelnour
Wall Street Investor & Financier, Pres.& CEO Blackhawk Partners
These are the most dangerous markets I have ever witnessed in my entire life, and I’ve been investing for over 25 years.
Global central bank balance sheets are up from $6 trillion in 2007 to $21 trillion today and they are still being expanded at the pace of $200 billion each and every month.
What’s happening is that the robo-traders, the algorithms, the frontrunners on Wall Street and around the world are just gaming the system, looking for the next increase in central bank credit to take their collateral to the ECB or to the Bank of Japan or to the Fed and buy more stocks and bonds.
That’s the game we’re playing today folks.
Even a hint that it might someday end sends the entire investment community scampering for the door; and that door is very, very narrow and can only fit a few people through it.
I am afraid when that bubble bursts, it will wipe out every asset — everything will collapse together — because everything is geared off of that so-called ‘risk free’ rate of return.
If your risk free rate of return has been warped down to 0% for 96 months, then everything — and I mean diamonds, sports cars, mutual funds, municipal bonds, fixed income, REITs, collateralized loan obligations, stocks, bonds, everything, even commodities — will collapse in tandem along with the bond bubble burst.
Now since there is no such thing as RISK FREE RATE OF RETURN, I suspect that the central banks are waiting until each country reaches the maximum sustainable debt level (The Fed has already stated that the level for the US is 24 trillion)and then change monetary policy and raise interest rates.
This will have a twofold impact.
They will milk all the citizens of their wealth by raised taxes and cause an economic meltdown of unprecedented proportions where they can buy assets at a discount. And, for why they would do this, I think the answer is “because they can”.
The biggest robbery of the 21st century in mankind’s history and 99.99% of the people are ABSOLUTELY CLUELESS.
Janet Yellen, Fed Chairman and the fountain of all economic knowledge, has personally assured us that eight years of excessive QE hasn’t raised the probability of a market reset. Also, the total outstanding debt of the U.S. is no concern to her, after all, the government can print and borrow as much as it wants… Frankly delusional.
The only way you can service the debt outstanding is by keeping interest rates near 0 percent. The problem is that once you do that for a protracted period of time, eventually the market is going to take those rates higher. So, you’re going to have no choice but to raise interest rates, and that’s when the real collapse comes.
So, it’s not possible that we can allow interest rates to normalize. We would have a debt implosion. So, the central bankers are caught.
My opinion? The Fed should sell their assets. They should drain their balance sheet, which is about $4.7 trillion by about a trillion dollars a year until they’re back down to where they were pre-crisis and then just go home, close shop. Period.
Brace yourselves folks…. You’ve been warned.
SEVEN Chinese cities — Beijing, Hefei, Jinan, Wuxi, Zhengzhou, Chengdu and Tianjin — have announced new restrictions on property purchases, as cities across the country try to cool soaring home prices stoked by property speculators.
On Friday, Beijing increased down payments for first-time purchasers to a minimum of 35 percent, one of the highest levels among China’s biggest cities.
The government in Hefei, capital of east China’s Anhui Province, unveiled 10 tightening measures at a press conference at 8:30pm yesterday in its latest bid to keep the stability and healthy development of the city’s real estate market.
Among the new policies, effective immediately, include suspending sales of new properties to families with the city’s residence permit who already have two or more properties in town, according to www.ahwang.cn, an Anhui news portal.
The new measures also require first-time home buyers in downtown locations to pay at least 30 percent of the purchase price as a down payment.
The eastern city of Jinan in Shandong Province said yesterday that residents who already own three properties cannot buy more and increased down payment requirements for those buying their first home to 30 percent from 20 percent, among other measures detailed on its website.
Pictures of hopeful homebuyers queuing up in Jinan to obtain spots in a lottery-like registry system during the holiday weekend were widely published before the new restrictions were announced.
In Wuxi in east China’s Jiangsu Province, the government also released a batch of new policies yesterday, requiring buyers of second homes to pay a minimum 40 percent down payment, 10 percent more than before.
Residents of Zhengzhou, in central China’s Henan Province, who already own two properties and non-residents who own one will now only be able to buy homes larger than 180 square meters, according to a notice posted on the local government’s website on Saturday night.
In Chengdu, capital of southwest China’s Sichuan Province, prospective buyers will only be allowed to purchase one property in certain city districts, and those buying their second property will need to place a down payment of no less than 40 percent of the purchase price, the local government said.
The Chengdu government also said it would penalize developers who were sitting on land without starting construction on time as promised and would clamp down on rumor-mongering.
The northern city of Tianjin revealed its latest policy to restrict property purchases on Friday. In a statement posted on its website, the city said it would stop people who do not have local hukou from buying a second property in the downtown area.
Down payments for non-residents in downtown locations will also have to be no less than 40 percent of the purchase price, it added.
China aims to have unified property registration in all cities and counties by the end of this year. As of August, half the country had adopted the new system, according to the Ministry of Land and Resources.
Under the new system, property registration should be handled by one single department to reduce costs and inconvenience for citizens.
With three months to go before the deadline, provinces have been stepping up their efforts to introduce the new system. Shanghai plans to fully adopt new system on October 8.
The average new home price in 70 major cities climbed an annual 9.2 percent in August, up from 7.9 percent in July, according to the National Bureau of Statistics.
Tech experts revealed that China is not training anywhere near enough IT workers to deal with digital threats issues at the country’s largest cyber security event Tuesday.
“As of 2014, China has more than 700,000 cyber security talents working in key information system and infrastructure industries. By 2020, China will need about 1.4 million cyber security talents. In the last three years, we have recruited about 10,000 students pursuing cyber security, but we are hugely lagging behind demand,” Feng Huamin, vice president of the Beijing Electronic Science and Technology Institute, said at a plenary session during China Cybersecurity Week held in Wuhan, capital of Central China’s Hubei Province on Tuesday.
As China is launching a national push to train more cyber security talents, many top universities have started to offer cyberspace-related majors since 2015.
Vice Minister of Education Lin Huiqing said at a press conference in February that the number of new university majors involving cyber security, information countermeasures and confidential data management has surpassed 120 and other cyberspace-related majors have exceeded 4,800.
However, many cyber security experts at the Wuhan event pointed out that only a small proportion of China’s schools offer such courses and there is a lack of qualified instructors, calling for the country to quickly establish a systematic discipline on cyber security education and promote more practical training.
No systematic method
At the session, Feng said that China now needs more cyber security talents working in several sectors, including those working in Party and government systems; in key infrastructure and information systems; and in combating cybercrimes and cyber terrorism.
Statistics show that China has 3,115 teachers involved in information security education but only 7 percent of them are classed as high-level talents.
Feng pointed out that only 10 percent of the 1,200 Chinese technology and science universities offer related majors while over 100 leading universities do not. Besides, only 15 Chinese universities have established cyber security schools and there is no systematic method for cyber security education.
In June 2015, China’s State Council released a notice, demanding the quick establishment of a cyber security discipline and the cultivation of cyber security talents.
Moreover, Feng noted that a lack of practical training and high-quality instructors are also two highly important problems.
Ernest McDuffie, former director of the US National Initiative for Cybersecurity Education program, said at the Wuhan conference that he has not met many college students who have an interest in studying cyber security and the growth rate of global cyber security talents in 2015 was under their expectation.
Shen Changxiang, an academician at the Chinese Academy of Engineering, suggested China open classes to train minors and offer chances for special talents to study cyber security at college without taking the national college entrance examinations.
The Wuhan government has pledged to double the number of scholarships for cyber security majors and recruit top cyber security graduates from Chinese and overseas schools as well as the winners of cyber security contests. It will also open a class for minors and run special recruitment drives for “maverick geniuses.”
Moreover, the city government will establish a new evaluation system. Instead of taking exams, cyber security majors will be evaluated based on their performance and priority will be given to those with practical and entrepreneurship experience.
As for cultivating first-class instructors, the Wuhan government vowed to offer twice the salary and research funds to the best cyber security experts compare to those working in similar positions.
Specifically, they will also receive 2 million yuan ($299,823) in subsidies and up to 100 million yuan in funding if they have innovative technologies that have a significant impact on the economy.
Mengchow Kang, board member of the Information Security Certification, called for the standardization of cyber security workforce development.
With such a system, cyber security talents, no matter where they are working, could get recognized with an international qualification, said Kang.
In February, China launched its first special fund for cyber security with initial capital of 300 million yuan to realize the nation’s strategic goal of becoming a strong Internet power.
The fund, established by the China Internet Development Foundation, will be used to provide financial assistance to experts and teachers who specialize in cyber security.
China launched its second space station, Tiangong-2, on Thursday, according
to state media reports, paving the way for a permanent space station that
the country plans to build around 2022.
The launch of the new satellite comes five years after the country launched
its first space station, Tiangong-1, in September 2011.
The space station Tiangong-2 is China’s first real space lab. A brain-computer
interaction test system, developed by Tianjin University, has been installed
in the lab and it is set to conduct a series of experiments in space, People’s
According to Ming Dong, the leader of the research team in charge of the brain-
computer test system, the brain-computer interaction will eventually be the
highest form of human-machine communication.
The brain-computer interaction test system in Tiangong-2 boasts 64 national
patents. The research team has long been devoted to the research of brain-computer
interactions, previously developing two idiodynamic artificial neuron robotic
systems that can help with the rehabilitation of stroke patients,” the
Regarding the use of such brain-computer interaction technology in space, the
leader of the research team suggested that it could also help Tiangong-2 astronauts
to more easily accomplish their assigned tasks. For example, the brain-computer
interaction can transmit the astronauts’ thoughts into operations, while at the
same time observing their neurological functions. Earlier in an interview with
Sputnik, Russian military expert, Vasiliy Kashin, said that Tiangong-2 will allow
Chinese astronauts to stay in orbit for 30 days, which is longer than ever before
in the history of the Chinese space program.
The Tiangong-2, whose name means “Heavenly Palace,” will be used to test space
technology and conduct medical and space experiments.
According to the military expert, in the future, a third module is planned for
launch, in which a crew of 3 people will be able to stay in orbit for up to 40 days.
The refueling technology of the orbiter is also planned to be developed in this module.
It should be noted that to date, China has managed to implement its program, in general
adhering to its originally established schedule without any unforeseen accidents.
Thus, it is hoped that with the advent of the private Chinese space station, China
will establish a permanent presence in space and will begin to experiment with
long-term human experiments required for flights to other planets.
GOVERNMENT and industry officials urged consumers to join the war against online fraud and spam messages as the National Cyber Security Awareness Week kicked off yesterday.
The campaign, organized by six national regulators, including the Ministry of Public Security and the Ministry of Industry and Information Technology, is aimed at improving the national online security level and raise people’s awareness. Problems like online fraud, leakage of personal information and network hacking have become national issues.
“Every one has to attend the campaign. Otherwise, all of us will become victims,” said Zhou Hongyi, chairman of Qihoo 360, the country’s biggest online security company.
Domestic firms, including Tencent, Baidu and Qihoo 360, and overseas giants like Microsoft and Kaspersky attended an online security expo in Wuhan, Hubei Province, as part of the national campaign.
Microsoft yesterday announced it will establish a transparency center in Beijing, which would open parts of Microsoft source codes to government-backed organizations.