On September 6, Shenzhen celebrated the thirtieth anniversary of its founding as a special economic zone (SEZ). And while the city feted itself at the highest levels of power, its celebrations were marred by an unexpected development: in a speech made by Wen Jiabao a week earlier, the Chinese Premier had called for further democratization in uncharacteristically blunt terms, warning of the peril of stalled political reform.
The People’s Republic of China (P.R.C.) is using various components of public diplomacy to influence the media in Latin America, Africa, and Southeast Asia. China’s primary purposes appear to be to present China as a reliable friend and partner, as well as to make sure that China’s image in the developing world is positive. As part of its efforts to do this, the Chinese government seeks to fundamentally reshape much of the world’s media in its own image, away from a watchdog stance toward the government to one where the government’s interests are the paramount concern in deciding what to disseminate. The Chinese efforts often result in helping authoritarian governments expand control of their local media, while working to undermine the Western model of a free and independent media.
Chinese inflation, particularly non-food inflation, has been surprisingly modest in recent years. The author finds that supply factors, including those captured through upstream foreign commodity and producer prices, have been important drivers of non-food inflation, as has foreign demand for Chinese goods. Domestic demand and monetary conditions seem less important, possibly reflecting a large domestic output gap generated by many years of high investment. Inflation varies systemically within China, with richer (and urban) provinces having lower, more stable, inflation, but this urban inflation also influence that in lower-income provinces. Higher Mainland food inflation also raises inflation in non-Mainland China.
