Voices

“Having been tested by the evolution of international relations over the past six decades， the Five Principles of Peaceful Coexistence， as open and inclusive principles of international law， embody the values of sovereignty， justice， democracy and rule of law，”

Chinese President Xi Jinping spoke at a meeting marking the 60th anniversary of the initiation of the Five Principles of Peaceful Coexistence on June 28， 2014. He announced that in recognition of the commitment and contribution made by groups and individuals to the Five Principles of Peaceful Coexistence and to encourage more people to join this noble cause， the Chinese government has decided to establish the“Five Principles of Peaceful Coexistence Friendship Award”and the “Five Principles of Peaceful Coexistence Scholarship of Excellence.”

“We are opposed to Japans pursuit of its domestic political goal by deliberately fabricating the so-called“China threat.” We urge the Japanese side to earnestly respect the legitimate security concerns of its Asian neighbors and prudently resolve issues. It must not undermine Chinas sovereignty and security interests， nor harm regional peace and stability.”

Foreign Ministry spokesperson Hong Lei made these remarks at a news conference when asked about the Japanese cabinets approval of a resolution that would allow the country to exercise the so-called “right of collective self-defense.”He said， “People cannot but question whether Japan is deviating from the path of peaceful development that it has been upholding since the end of WWII.”

Economy & Nation Weekly

Issue No. 12 published June 8， 2014

Zhejiang Facing Risks

Since the outbreak of the global financial crisis， Zhejiang Province， the benchmark region of Chinas private economy， has taken more and more risks. Tangled in dysfunctional capital and guarantee chains， severely affected areas such as Wenzhou are finding it hard to free themselves. Some analysts point out that the main reason for this lies in its self-management. Other factors such as the shift in the economic growth rate and structural growing pains are just superimposed on it.

Recently， reporters of Economy & Nation Weekly interviewed more than 30 enterprises and banks and 20 government officials in Hangzhou， Ningbo， Wenzhou， Shaoxing， Xiaoshan， Jiande and Fenghua. By comparing the results with official figures， the risks in Wenzhou have expanded to other cities such as Shaoxing and Xiaoshan. The number of enterprises affected by broken capital and guarantee chains increased sharply， with many banks actual non-performing loan ratios far surpassing the warning line.

Meanwhile， signs of “de-manufacturing” and “desubstantialization” have become increasingly obvious. Zhejiangs anxiety has spread from the financial industry to the macroeconomic level.

Preventing systematic and regional financial risks is the baseline required by the central government. Coordination among the government， banks and enterprises might ease the urgency but it will be hard to reverse the tide. The prospect of Internet finance is attractive； however， it will be difficult to reconstruct Zhejiangs economy. Some experts believe that the key is “to consolidate the industrial base and accelerate enterprise transformation into a prosperous entity that will enable the country to thrive.”

In the face of the risks， Zhejiang has always been at the forefront of reform and opening-up as well as economic development. What kind of courage and wisdom will Zhejiang adopt in reform to make a breakthrough in Chinas economic transformation and upgrading？