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• Taiwan battles economic and cross-Strait tensions in 2013
  23 December 2013 Author: Sheryn Lee, University of Pennsylvania In 2013, Taiwan’s political and economic developments again centred on its relationship with China, and the effect of cross-Strait rapprochement on Taiwan’s domestic conditions. Yet even without China as a factor, Taiwan would still face significant challenges. A customer looks at Christmas decorations for sale at a local store in Taipei on December 18, 2013. (Photo: AAP) It has entered a difficult stage in its social and economic development, which has proven a tough test for President Ma Ying-jeou’s 2012 pre-election campaign promises. In 2014, Taiwan’s economic, political and strategic challenges can only increase, placing the political system under even more pressure. [Taiwan] [Straits]
• China, Koreas fight over dynasty
  23 December, 2013 – Japan Times JIAN, CHINA – Centuries ago Kwanggaet’o the Great ruled over a mighty empire stretching from south of Seoul deep into Manchuria in China’s northeast, but his Koguryo dynasty is now at the center of a historical tug-of-war. He is revered as a Korean national hero on both sides of the divided peninsula, while Chinese attempts to claim Koguryo as its own have provoked fury among its neighbors. One of Koguryo’s capitals, now the modern Chinese city of Jian, stands on the Yalu River on the frontier between China and North Korea. It hosts a treasure trove of historical sites and cultural relics, including royal mausoleums designated as UNESCO World Heritage sites and decorated with murals depicting traditional wrestling and tiger-hunting. [Koguryo]
• Special Economic Zones after the Purge
  By Sino-NK | December 30, 2013 | No Comments Immediately following the execution of Jang Song-taek, communications between China and North Korea “had the sensation,” as one anonymous Chinese diplomat put it, “of having been interrupted overnight.” China has since insisted that business goes on as usual, and a deal on the construction of a high-speed railway between Kaesong and Beijing, signed on the day of the purge itself, suggests that for some the interruption may barely have registered. Meanwhile, the purge itself suggested that Kim Jong-un has grown sufficiently confident in his abilities to the extent that he does not need his uncle’s strong business ties with Beijing, and by extension does not need China’s good favor quite as much as before. [SEZ] [China NK][Jang Song Thaek]
• 3 Ways Mao Shaped Naval Warfare
  While PLAN officers might not quote Mao anymore, their strategy bears his mark. By James R. Holmes December 27, 2013 As China commemorates the 120th birthday of Chairman Mao Zedong, most Western commentaries have dwelt on how he shaped present-day China for good or, mostly, for ill. This is right and fitting. It helps outsiders know the new, old Asian titan rising in the Pacific. Mao’s impact on Chinese strategic thought has attracted less scrutiny. It’s worth remembering that the communist supremo was a strategist — one who’s still studied in war colleges across the globe, including my own — as well as an ideologue and a tyrant. It’s not so much that strategists quote Mao incessantly. Nowadays he’s far from a staple of Chinese strategic discourses. But his imprint remains visible. He shapes assumptions about China’s geostrategic environment and how China should manage that environment. In short, Maoist theory is woven into China’s strategic culture. People need not quote Mao all the time to take inspiration from his ideas and example. It’s unwieldy to restate the source of your assumptions every time you make an argument. Heck, you may not even know where they come from. That’s why they’re assumptions. For instance, the ghost of Alfred Thayer Mahan flits about whenever American military folk discuss command of the global commons. Few have made a study of Mahan’s works; some have never heard of him; many who have want to forget his leaden prose. His ideas endure nonetheless. Strategy comes in threes, it appears. Thucydides explains human conflict in terms of fear, honor and interest, Clausewitz has his “paradoxical trinity,” Mahan has his tridents of sea power, and so forth. In that spirit, here are three Maoist axioms underlying Chinese strategic thought today: [Seapower] [China confrontation] [A2D2]
• The Uncertain Future of a “New Type” of US-China Relationship
  Mel Gurtov The Idea, and the Obstacles President Xi Jinping’s call for a “new type of great-power relationship” in meetings in 2013 with President Obama raises important questions about the future of US-China relations. On the surface, it appeared that the two leaders were on the same page. At the June summit, Obama agreed with Xi that “working together cooperatively” and bringing US-China relations “to a new level” were sound ideas.1 When the G-20 countries convened at St. Petersburg in September, Obama said of Xi’s proposed new model: “we agreed to continue to build a new model of great power relations based on practical cooperation and constructively managing our differences.” But he added that “significant differences and sources of tension” remain with China, implying that China’s “playing a stable and prosperous and peaceful role” in world affairs remained a matter of US concern.2 - [F&E] [Hegemony]
• China's high-speed rail on fast track
  Xinhua, December 28, 2013 Several new high-speed railway links in China are expected to start operations by the end of 2013, extending the network to over 12,000 kilometers, more than half of the world total. "We are looking forward to the new line," said Xie Fugui, a businessman in the southern city of Guangzhou. "Most of my suppliers are from Chaozhou, and it takes me at least six hours to go there by coach, but the new railway will cut my travel time by half." Xie was talking about the Xiamen-Shenzhen line between the port of Xiamen in east China's Fujian Province, and Shenzhen, China's first Special Economic Zone. Travel time between the two cities shortened from 13 hours to four hours as it opened on Saturday. The 513 km line extends east to Shanghai and westward to Guangzhou, significant business hubs. It is the last link in the chain between the most dynamic cities and manufacturing centers in east and south China, with a population over 700 million, and almost as large as Europe. [Railways]
• Chinese Anxieties and Korean War Commemorations
  By Adam Cathcart | December 28, 2013 As we consider changes and continuities in Chinese-North Korean relations that have manifested in an eventful 2013, a look back at the Korean War commemorations this past July is more than appropriate. The war, after all, was unquestionably the farthest-reaching interaction between the two ruling parties and countries in the modern era, if not necessarily the oldest. The war had huge human consequences, sweeping Kim Jong-il and his sister Kim Kyong-hui into Northeast China, where they found refuge from American bombing and became acquainted with their absent guerrilla father figure’s revolutionary exploits in Jilin. Naturally there were consequences on the Chinese side as well, not least of which was the now-celebrated death of Mao Zedong’s son on the battlefield of the Korean peninsula. [Korean War]
• China says satellite network to be big asset, others can use it too
  By Adam Rose BEIJING Fri Dec 27, 2013 1:20am EST Long March 3C, carrying the 6th Beidou navigational satellite, lifts off from the launch pad at the Xichang Satellite Launch Center, Sichuan province, November 1, 2010. REUTERS/Stringer (Reuters) - China's homegrown satellite navigation system will bring untold economic, social and military benefits and other countries in Asia are welcome to use it, the director of China's satellite navigation agency said on Friday. The year-old Beidou satellite navigation system is a rival to the U.S. Global Positioning System (GPS) and Russian GLONASS. Beidou's 16 satellites serve the Asia-Pacific but the number of satellites is expected to grow to 30 by 2020 as coverage expands globally. The system would bring benefits across the board, in both civilian and military applications, said Ran Chengqi, the director of the Satellite Navigation Office. [Satellite] [GPS] [Beidou]
• Xi: Holding high banner of Mao 'forever'
  Xinhua, December 26, 2013 Chinese President Xi Jinping said on Thursday that the Communist Party of China (CPC) will hold high the banner of Mao Zedong Thought "forever" in pursuing the Chinese nation's rejuvenation. While commemorating the 120th anniversary of the birth of the late Chinese leader, Xi hailed Mao and other members of the older generation of revolutionaries as "great figures" in fighting national and class oppression, as well as standing at the wavefront of the positive tide in the Chinese nation and world. At a symposium held by the CPC Central Committee in Beijing, Xi said Mao, the principal founder of the CPC, the Chinese People's Liberation Army and the People's Republic of China (PRC), was "a great proletarian revolutionary, strategist and theorist." Xi also hailed Mao as "a great patriot and national hero" and the core of the first generation of the Chinese leadership. "Mao is a great figure who changed the face of the nation and led the Chinese people to a new destiny," said Xi, also general secretary of the CPC Central Committee and chairman of the Central Military Commission. He pointed out that a correct historical view must be adopted to appraise a historical figure. "Revolutionary leaders are not gods, but human beings," Xi said. [Mao Zedong] [Xi Jinping]
• Ma highlights improved cross-strait relations
  Ma highlights improved cross-strait relationsROC President Ma Ying-jeou sees accession into trade blocs such as the TPP and RCEP as key to sustaining Taiwan’s development going forward. (CNA) •Publication Date:12/26/2013 •Source: Taiwan Today ROC President Ma Ying-jeou outlined the fruitful results of improved cross-strait relations during a recent interview with Yazhou Zhoukan, vowing to continue strengthening exchanges with mainland China. The president also reiterated the government’s commitment to joining talks on regional economic integration, such as the Trans-Pacific Partnership and Regional Economic Comprehensive Partnership. Ma, who made the remarks during a Dec. 19 interview with the Hong Kong-based weekly at the Presidential Office in Taipei City, said that since he took office in May 2008, the government has made every effort to promote cross-strait relations in the best interests of Taiwan and its people. Evidence of the much healthier state of affairs include the 95 daily direct commercial flights across the strait, from zero five years ago; 19 bilateral agreements signed between Taipei and Beijing, including the Agreement on Joint Crime-Fighting and Judicial Mutual Assistance; and the 24-fold increase in the number of mainland Chinese students in Taiwan. [Straits]
• Reactionary US provides new opportunities for China to lead
  By Jin Liangxiang China.org.cn, December 28, 2013 2013 was not a bad year for the U.S. in the Middle East. It was able to restart Israel-Palestine negotiations in July, persuade Syrian President Bashar al-Assad to sign an agreement to remove chemical weapons in September, and negotiate an interim deal with Iran on its nuclear policy in November. Despite these achievements, the U.S. continues to become more of a reactionary power in the region. It seems likely that its Middle East policy will change significantly, which will have profound implications on China's Middle East policy. [Chinese IR]
• New Silk Road idea requires feasible measures
  By Cui Heng China.org.cn, December 25, 2013 China will continue to promote the construction of the economic belt along the Silk Road, as well as the "21st century maritime Silk Road," according to the annual Central Economic Work Conference, which ended last week. Aiming at strengthening the economic ties between Europe and Asia and promoting economic exchanges in Asia, the policy is a continuation of China's strategy to secure an amicable, tranquil and prosperous periphery. It also shows China's will to maintain a sound relationship with neighboring countries. However, after careful thinking, we realize that it is rash to propose such an idea, because there are no feasible implementation measures or plans about how to cooperate with neighboring countries. This has caused frequent misunderstanding and even intentional misinterpretation by the foreign media. An example is Russia. After China proposed the idea, Vladimir Putin was criticized domestically for being too pro-China, and the Russians were worried that their interests would be harmed. It was difficult for Putin to speak in favor of China even if he agreed with the idea. Building a new Silk Road is complicated and it cannot be done by one country alone. [Eurasian landbridge] [Going West] [China Russia]
• N.Korea Tries to Cozy Up to China Again
  North Korea is cozying up to China after executing former eminence grise Jang Song-taek, who had close ties with Beijing. Chinese media on Saturday said North Korea took part in an exhibition in China's Hubei Province which opened a day earlier. The exhibition features traditional crafts, liquor, stamps, paintings and other products from China, North Korea, Taiwan and Vietnam. Hong Kong's Yazhou Zhoukan reported on Friday that Pyongyang sought Beijing's "understanding" right after Jang's execution and asked to discuss a visit to China by Kim Jong-un. Quoting Chinese officials, the weekly said Pyongyang explained why it had to take radical measures against Jang and insisted that it will continue to cooperate in joint economic projects with China. Earlier this year, the North sent military Politburo chief Choe Ryong-hae to China to mend fences, apparently signaling that Choe would replace Jang as the top liaison man. But China apparently missed the significance of the message, the weekly added. [Jang Song Thaek] [Media]
• Resolving the phony battle of the competing ADIZs
  22 December 2013 Author: Sourabh Gupta, Samuels International On 23 November, China announced the establishment of its East China Sea Air Defence Identification Zone (ADIZ). The policy, its announcement, and the prompt and selective nature of its implementation bear many of the quintessential hallmarks of Chinese statecraft.In this Sept. 2, 2012 photo, the survey ship Koyo Maru, left, chartered by Tokyo city officials, sails around Minamikojima, foreground, Kitakojima, middle right, and Uotsuri, background, the tiny islands in the East China Sea, called Senkaku in Japanese and Diaoyu in Chinese. (Photo: AAP) The policy is intended to deliver a shock to the adversary — that being Japan in this case. Although Beijing avers that the ADIZ was drawn with no target country in mind, the zone only marginally overlaps with Taiwan’s and South Korea’s ADIZs (the Korean ADIZ overlap area has since been enlarged by Seoul). No Chinese military aircraft has yet flown into these overlapping zones. By contrast, Chinese surveillance aircraft have flown across the breadth and (most of the) length of the overlapping portion of Tokyo’s ADIZ. The policy is intended to be a political rejoinder (in an escalating series) to an immediate provocation — the alteration of the status quo by the Noda government’s private purchase of three Senkaku/Diaoyu islands in September 2012. The purchase was officially frowned upon by even Japan’s chief ally, the United States. That Chinese coast guard vessels have also asserted an operational presence in the Senkaku/Diaoyu territorial sea 72 times since the islands’ purchase suggests that Beijing will persist in fanning the flames of a fire that it did not light. [ADIZ] [Diaoyu] [Response]
• PLA General on “Incalculable Damage” of North Korea’s Nuclear Program
  By Nathan Beauchamp-Mustafaga | December 20, 2013 The number and variety of Chinese statements on North Korea since the bureaucratic fall and psychologically brutal execution of Jang Sung-taek has increased markedly. After Jang’s death–or what one Chinese essay called “the long-rumored political earthquake” in North Korea–the Chinese Communist Party is trying to avoid the contagion of blame while preserving freedom of action. One of the most striking op-eds to appear in recent days was by Wang Hongguang, a retired PLA general whose essay was briefly featured on Huanqiu Shibao‘s front webpage. While previous Chinese commentators have expressed concern over a North Korean nuclear accident and the country’s missile launches, General Wang goes a step further, noting the danger of falling North Korean ballistic missile parts over China and critiquing Pyongyang’s Byungjin line, while asserting that Kim Jong-il really desired North Korea to “open up and reform” but simply lacked the resources to do so. As Chinese commentators try on various justifications for a change in policy toward Pyongyang, and the public reframing of North Korea debate in the PRC continues, General Wang’s essay adds further fuel to the fire: [China NK] [Media] [Heading]
• China's overseas investment soars
  China Daily, December 19, 2013 Chinese outbound investment rose a dramatic 28.3 percent in the first 11 months of the year as the world's second-largest economy acquired foreign assets amid its growing global economic clout. Outbound investment, calculated on the basis of deals closed, rose to $80.2 billion in the January-November period, exceeding the $77.2 billion for all of last year, the Ministry of Commerce said on Wednesday. Shen Danyang, spokesman for the ministry, said it will continue to improve industrial guidance for Chinese investment in various overseas destinations and help strengthen training of transnational managers for the overseas operations of Chinese enterprises. [ODI]
• Obama to nominate Sen. Baucus as ambassador to China.
  By Paul Kane and Ed O’Keefe, Thursday, December 19, 1:43 PM E-mail the writers President Obama plans to nominate outgoing Sen. Max Baucus (D-Mont.) as the next U.S. ambassador to China. The White House and Baucus declined to comment Wednesday on the pick, but Sen. Orrin G. Hatch (R-Utah) and several Senate aides and Baucus allies confirmed the decision. Baucus, 72, stunned the political establishment this year when he announced that he wouldn’t seek reelection next year. As chairman of the powerful Senate Finance Committee, Baucus played a key role in crafting Obama’s health-care law and was among the first Democrats to publicly worry about the law’s implementation — worries that were later found out to be justified. [US China relations] [governance]
• Why Sen. Max Baucus is a strange choice for U.S. ambassador to China
  By Max Fisher ? December 18 at 6:55 pm The phrase "pivot to Asia" has become more punchline than policy in the years since the Obama administration first announced it would be refocusing U.S. foreign policy more intently on East Asia. The many setbacks have typically been due to events outside of the administration's control, such as turmoil in the Middle East, that distracted from the long-term goals in Asia. But we got a hint today of how the White House thinks about its Asia policy with the news that Sen. Max Baucus (D-Mont.) will be tapped as the next U.S. ambassador to China. It would not be fair to pre-judge the 72-year-old legislator's diplomatic abilities before he has a chance to use them. And maybe it's just a coincidence that pulling Baucus out of the senate helps the White House with some domestic political issues. But Baucus is not an obvious choice. He is not completely new to China; he's traveled there to promote trade, something he's advocated since at least the mid-1990s. But there's little on his resume that screams "China," which is unusual both in that there are lots of more obviously qualified candidates and that most U.S. ambassadors to Beijing have had significant ties to the country. [US China relations] [governance]
• Three reasons why the White House is sending Max Baucus to China
  By Juliet Eilperin and Sean Sullivan December 18 at 6:39 pm President Obama’s decision to nominate Senate Finance Committee Chairman Max Baucus (D-Mont.) as the next U.S. ambassador to China took many in Washington by surprise. But there are plenty of reasons why this was a smart move from the White House’s perspective. Here’s three. 1. It (probably) increases the chances of Democrats holding onto his seat in 2014. [US China relations] [Governance] [Domestic]
• Huanqiu on Kim Jong-un’s “Hammer Blow”
  By Adam Cathcart | December 18, 2013 “Political stability in N.Korea benefits all,” Global Times’ English reply to the Jang purge pointed out. While far from supportive, the original Chinese version was noticeably different. | Image: KCNA The Global Times’ initial response to the execution of Jang Sung-taek looked like an even-handed and even somewhat predictable response to North Korea’s actions. (Entitled “Political stability in N.Korea benefits all,” its general message could hardly be mistaken.) But, as ever, the Global Times’ English editorials are essentially different essays from the Chinese originals upon which they are roughly based. Thus, the Chinese version of this arguably consequential editorial speaks rather differently. In the English version, much potentially productive analytical material, statements, and warnings for North Korea are left aside in favor of unassailably bland bromides. [Jang Song Thaek] [China NK]
• Tom Pickering Interviews Henry Kissinger on America's Rebalancing Towards the Asia-Pacific
  Posted: 12/11/2013 9:42 pm Last Wednesday, the World Affairs Council of Washington, D.C. hosted the Sisco Memorial Forum, established in honor of the late diplomat Joseph Sisco. Tom Pickering interviewed Henry Kissinger on a range of foreign-policy challenges that confront the Obama administration, but focused mostly on America's rebalancing towards the Asia-Pacific region. Here are a few takeaways: [Kissinger] [Pivot] [US global strategy]
• Fun or bias? American TV series and China humor
  By Zhang Rui China.org.cn, December 18, 2013 The American TV industry is no stranger to mockery. It just uses people's set ideas, or prejudices, towards a certain race or group of people to make fun of them. Chinese people often form a target in this way. Let's take a look at some prime examples. In the latest installment of popular TV series "The Big Bang Theory" (CBS), Sheldon Lee Cooper Ph.D claimed he had discovered a method for synthesizing a new stable super-heavy element. Despite the fact that a Chinese research team at the Hubei Institute for Nuclear Physics ran a test on a cyclotron with extremely promising results and later found the element, his calculations proved off. This may imply the issue of China's academic credibility. [China bashing] [Culture gap]
• FM: Clashes with US can be avoided
  China Daily, December 17, 2013 China does not believe it is inevitable that emerging powers will confront established ones, and the nation is confident that clashes can be avoided by working on the issue with the United States, Foreign Minister Wang Yi said on Monday. Wang made the remarks two days after media reported that a Chinese warship escorting China's sole aircraft carrier, the Liaoning, in the South China Sea on Dec 5 confronted the guided-missile cruiser USS Cowpens, which was closely following the Chinese ships despite warnings from the Chinese. In spite of the tension, the foreign minister called US Secretary of State John Kerry on Sunday night to discuss bilateral ties and other international issues, including the nuclear issue on the Korean Peninsula. Addressing a year-end seminar in Beijing focusing on changes in China's foreign policies under the new government, the minister said that throughout history, it seems to be a matter of fate that "major powers, especially emerging powers and established ones, will compete, confront and even clash with each other. "However, today, in the 21st century and given fast-developing globalization, China neither believes in nor agrees with the idea of such a fate." [F&E] [China confrontation] [Conflict] [Peaceful rise]
• Chief scientist chides narrow view on lunar project
  By Zhang Lulu China.org.cn, December 17, 2013 Ouyang Ziyuan, chief scientist in China's lunar probe project, has dismissed the 'shortsighted' view held by some on the recent exploration. [CNS photo] Ouyang Ziyuan, chief scientist in China's lunar probe project, has dismissed the "shortsighted" view held by some on the recent exploration. [CNS photo] China's first moon rover Yutu (Jade Rabbit) landed on the Moon last weekend, inspiring much acclamation among the Chinese public. Yet some people are having doubts as to whether the mission will turn out to be of any real practical use. Ouyang Ziyuan, chief scientist for the project, has expelled this argument as being "shortsighted," according to a report by China's Southern Metropolis Daily on Dec. 15. Ouyang explicates how the mission may make use of the Moon's solar energy. "As the sun shines on the Moon for a straight half-month and there are no clouds to reduce the sunshine, there is much more sunshine than there is on the Earth." Moreover, unlike the densely populated Earth, solar panels can be installed in practically every corner of the Moon, without any hindrance from manmade buildings. Subsequently, the generated electricity will be sent back to Earth via the use of lasers or microwaves, making it the cleanest energy possible. Seeking natural resources is one of the major missions of China's lunar project. Ouyang explains that Helium-3 fusion energy, a material for controllable nuclear fusion testing, is thought to be buried inside the lunar rocks. Chang'e 1, China's first lunar satellite, already found a storage of at least 1 million tons of Helium-3 on the Moon, which may in turn help generate nuclear energy supporting the Earth for more than 10,000 years to come -- if the technology becomes fully commercialized. In fact, as China and six more economies are currently building an International Thermonuclear Experimental Reactor (ITER) in France and trying to advance the technology of controllable nuclear fusion, China's ongoing lunar program may actually boost the ITER program. [Aerospace] [Energy]
• China's think tanks boom in 2013
  By Li Xiaohua and Chris Parker China.org.cn, December 17, 2013 This year, China's President Xi Jinping proposed the establishment of "new think tanks with Chinese characteristics," in the clearest instruction from the central government on think tanks so far, a measure which has prompted a boom in the development of think tanks in China. Major developments in Chinese think tanks this year In January, the Chongyang Institute for Financial Studies was established in the Renmin University of China, a modern Chinese think tank for "big finance" research. A number of former Chinese and international officials joined the think tank, including John Ross, former deputy mayor of London. In April, President Xi Jinping set a goal of establishing "new think tanks with Chinese characteristics," to develop them into an important part of China's soft power, and increase the strategic importance of think tanks in China. The goal was a continuation of the report of the 18th CPC National Congress, which also proposed "developing the role of think tanks." On April 21, Tsinghua University launched its Schwarzman scholars program to develop top global talent. [Think tanks]
• Internet Events, Social Media and National Security in China
  by Peter Hayes and Roger Cavazos December 4, 2013 I. INTRODUCTION Peter Hayes and Roger Cavazos analyze information flows to and from China and analyze social media use (especially the use of micro-blogging or “weibos”) and find that those flows allowed a much broader dialogue and even some inclusionary processes regarding national security issues in China. There are also anecdotal, yet illustrative examples of the extent to which these developments likely affected Chinese policy-making. We also argue that China’s government recognizes there is an opportunity to interact with China’s huge “netizen” communities at a speed and volume that exceeds the government’s current capabilities. The dialectical response has been a clamp on information flows until policy and technology are in balance. The new inclusionary processes also allow for a type of participatory government. We also infer that just as information flows inside China are changing, Chinese social media actors will also interact with external security players—states, corporations, and transnational civil society—in new ways that will change the nature of geopolitics in the region. Managing these changes will require new forms of civic diplomacy and a greater emphasis on conducting discussions with China in Chinese language. [Social media] [Democracy]
• Why Doesn’t Anyone Care About the Rising U.S.-China Tension?
  By Peter Beinart December 16th 20135:45 am What if China and the U.S. were a hair’s-breadth away from war—and Americans didn’t notice? Why pundits on both sides of the aisle are ignoring the scary reality. I read something terrifying Sunday. Turns out that 10 days ago, amid the rising tension provoked by China’s establishment of an air defense identification zone over territory also claimed by Japan, a Chinese naval vessel came within 200 yards of hitting an American cruiser. Had the two ships collided and sailors from both sides died, the two most powerful countries on earth would have found themselves contemplating war. But that’s not the scariest part. The scariest part is that I read about the incident on page A21 of The New York Times. As of 11:30 a.m. Sunday, the story wasn’t visible on the Times’ homepage. That same morning, when CBS’s Bob Schieffer interviewed foreign policy big-mouth John McCain, the incident never came up. The relationship between China and America is today’s equivalent of the relationship between Germany and Britain before World War I. It’s the foundation of world commerce and world peace. But it’s fragile. In the history of international affairs, nothing is more predictable than war between rising and status quo powers—especially when they lack similar political systems and cultures. The mere prospect of Sino-American war would change the world in ghastly ways. Yet American politicians and pundits devote far less attention to China than to countries with far less power. At Chuck Hagel’s hearing to be defense secretary, Israel was mentioned 178 times, Iran 171 times, and China five times. [F&E] [China confrontation] [Domestic] [Media]
• ROC reaffirms sovereignty over Diaoyutais
  •Publication Date:12/16/2013 •Source: Taiwan Today Any attempt to infringe on the ROC’s sovereignty over the Diaoyutai Islands is futile, the ROC Ministry of Foreign Affairs reiterated Dec. 13, calling on all parties to follow President Ma Ying-jeou’s East China Sea peace initiative in using peaceful dialogue to reduce tensions in the region. The MOFA remarks were in response to the Japanese Ministry of Foreign Affairs adding nine additional foreign language versions, including Mandarin and Korean, of a video containing statements about the Diaoyutais Dec. 11 on its website. The MOFA responded Oct. 24 to the initial launch of a Japanese language version of the same video. “Japan’s unilateral, inappropriate moves cannot alter the historical reality of the ROC’s sovereignty over the Diaoyutai Islands, and are detrimental to stability in the region,” the MOFA said. [Diaoyu]
• China's moon rover, lander photograph each other
  Xinhua, December 16, 2013 Screen shows the photo of the Yutu moon rover taken by the camera on the Chang'e-3 moon lander during the mutual-photograph process, at the Beijing Aerospace Control Center in Beijing, capital of China, Dec. 15, 2013. The moon rover and the moon lander took photos of each other Sunday night, marking the complete success of the Chang'e-3 lunar probe mission. (Xinhua) China's first moon rover and lander took photos of each other on the moon's surface Sunday night, a move that marks a complete success of the country's Chang'e-3 lunar probe mission. Ma Xingrui, chief commander of China's lunar program, announced that Chang'e-3 mission was a "complete success", after the two successfully took pictures for each other. The one-minute photographing came a day after the country completed its first lunar soft landing, the world's first of the kind in nearly four decades. The last soft landing was carried out by the Soviet Union in 1976. At about 11:42 p.m. Beijing Time, the six-wheeled Yutu, or Jade Rabbit, moved to a spot about 9 meters north to the lander and the photographing began. The color images, live transmitted via a deep space network designed by China, showed the Chinese national flag on Yutu. It marked the first time that the five-star red flag had pictures taken in an extraterrestrial body. [Aerospace]
• Jang’s execution leaves China in delicate position
  By Associated Press, Saturday, December 14, 2:21 PM BEIJING — The stunning execution of Kim Jong Un’s powerful uncle strips China of its most important link to North Korea’s leadership and deepens concerns over how the unruly neighbor will proceed on Beijing’s key issues of nuclear disarmament and economic reform. Facing heightened uncertainty, Beijing will likely avoid for now any response that might boost panic or paranoia in Pyongyang, where China is both valued and resented as a key backer of Kim’s regime. “It’s like when you have a gas leak. You want to be very, very careful not to set off any sparks,” said Jingdong Yuan, an expert on northeast Asian security at the University of Sydney. At the same time, China is likely dusting off its contingency plans for instability or even a regime collapse that could see thousands of refugees swarming across its borders, put the North’s nuclear facilities at risk, and prompt action by the U.S. and South Korean militaries, Yuan said. [Jang Song Thaek][China NK] [Takeover] [Collapse]
• Execution may hit China-DPRK projects
  China Daily, December 14, 2013 The execution of the uncle of Pyongyang's top leader may temporarily affect some cooperation projects with China, but economic ties between the neighbors will remain stable in the long run, analysts say. The Democratic People's Republic of Korea's official news agency KCNA reported on Friday that Jang Song-thaek, uncle of supreme leader Kim Jong-un, was executed on Thursday for being a traitor. Jang was in charge of economic affairs and cooperation with China. "Following Jang's execution, the DPRK is likely to review cooperation projects with China," said Gao Haorong, an expert on DPRK studies at the Xinhua Center for World Affairs Studies, a think tank under Xinhua News Agency. Jang led delegations to China for negotiations on economic projects, including Hwanggumpyong Island, a special economic zone near Dandong in Liaoning province. Chen Qi, a professor in international affairs at Tsinghua University, said that after Jang's execution, China and the DPRK may need some time to rebuild connections to continue cooperation on such projects and to further their economic cooperation. But Wang Junsheng, a researcher in East Asian studies at the Chinese Academy of Social Sciences, said the impact will be short-term and limited. [Jang Song Thaek] [China NK]
• U.S. Power Loses Altitude in Asia
  Washington has let down its Asian allies and put its command of the skies at risk. By J. Randy Forbes and Michael Auslin Dec. 11, 2013 12:05 p.m. ET Vice President Joe Biden's trip to East Asia last week did little to resolve the sudden increase in tensions caused by China's declaration of an expansive air defense identification zone (ADIZ) over the East China Sea. The underlying theme of Mr. Biden's message to China, Japan, and South Korea was "Let's find a way to make this work." Our allies had clearly expected the U.S. to reassert the right of innocent air passage and reject China's intrusion into other long-established air zones. Instead, Washington has sent mixed messages and failed to convince our allies that it won't stand for China's unilateral redrawing of the East Asian skies. China purposefully drew its ADIZ to overlap with Japan's decades-old zone, covering the Senkaku Islands, which are contested by Beijing and Tokyo, as well as a part of South Korea's ADIZ. Both the Japanese and South Korean governments urged their civilian airlines not to comply with Beijing's demands for flight information and transponder codes over international airspace. By comparison, the State Department has told American air carriers to provide China the information. The lack of a firm American line against China's provocations may have contributed to South Korea's expansion of its own ADIZ, which now overlaps China's even more and has crossed into Japan's. [China confrontation] [Hardliner]
• Seoul to Allow South Korean Airlines to Recognize New China Defense Zone
  If They Choose, Carriers Crossing Zone May Now Inform Chinese Authorities By Jeyup S. Kwaak Dec. 12, 2013 2:05 a.m. ET SEOUL—South Korea has scrapped an order to its commercial airlines to ignore the air-defense zone China declared late last month—Seoul's first acquiescence to a Chinese act that has soured diplomatic relations in the region. South Korean Transport Minister Suh Seoung-hwan said late Wednesday that carriers would be allowed to decide for themselves whether to submit flight plans to Chinese authorities, according to a ministry spokesman. Soon after China declared the zone over the East China Sea, South Korea told its carriers not to recognize it—part of Seoul's protest against an air-defense zone that overlaps its own and covers an area of ocean claimed by both countries. Separately, the ministry's head spokesman, Song Seog-jun, said Thursday that the change was made for safety reasons. [ADIZ]
• S. Korea air defense move hinders cooperation
  By Xue Baosheng China.org.cn, December 11, 2013 South Korea announced on Sunday a southward expansion of its air defense identification zone (KADIZ), encompassing the nation's two southernmost islands of Marado and Hongdo as well as the Suyan Rock, a submerged reef that overlaps with China and South Korea's exclusive economic zones (EEZ). South Korea announced on Sunday a southward expansion of its air defense identification zone (KADIZ). This is the first time that South Korea has adjusted its ADIZ since it was demarcated in March, 1951. The KADIZ's eastern and western boundaries remain the same as before and the new zone will take effect from Dec. 15, according to the South Korean Defense Ministry. Chinese Foreign Ministry spokesman Hong Lei said on Friday that the South Korean move to expand the KADIZ should be in line with its national laws and international norms and China would like to maintain communication with the South Korea on the basis of equality and mutual respect. Hong also said that an ADIZ was not part of a country's territorial airspace and had nothing to do with administrative rights over seas and airspace. China's stance towards ADIZ is clear -- it is to defend China's national security and reduce the risk of conflicts. However, after China announced the East China Sea ADIZ on Nov. 23, the South Korea navy sent warships to patrol the waters around Suyan Rock on Dec. 2. This reaction will hold back the development of the strategic partnership between China and South Korea. [ADIZ] [Dilemma]
• Chinese company’s withdrawal from N. Korea could be related to recent ouster
  Posted on : Dec.11,2013 15:06 KST Jang Song-thaek in Beijing in August 2012, meeting with then-Chinese President Hu Jintao. Ousted Jang Song-thaek had been responsible for attracting business from China By Kang Tae-ho, senior staff writer Japanese newspaper the Nihon Keizai Shimbun reported on Nov. 22 that a Chinese state-run corporation that had been participating in the development of a special economic zone in North Korea scrapped its investment plans and pulled out of the project. At the time, the report didn’t attract much attention. But now that Jang’s ouster has been confirmed, the company’s departure could be connected with the fall of Jang, former Workers’ Party of Korea (WPK) administrative department head. According to the paper, China Merchants Group was participating in the development of the Hwanggumpyong and Rason special economic zones through the “full investment” method. The article quoted Yang Tianping, executive of China Merchants Shekou Industrial Zone, a subsidiary of the group, who said that they had pulled out of both Hwanggumpyong and Rason. “We will not be developing these areas after all,” Yang said. “The conditions were not mature.” [FDI] [SEZ] [Hwanggumpyong] [Rason]
• With concerns over conflict, new ADIZ to take effect Dec. 15
  Posted on : Dec.10,2013 16:33 KST Seoul’s move to expand ADIZ is being seen as reasonable, given recent move by China By Ha Eo-young, staff reporter and Seong Yeon-cheol, Beijing correspondent The new South Korean air defense identification zone (KADIZ) - which has been expanded to include Ieo Island, which is administered by South Korea, and the Korean territories of Hong Island and Mara Island - will take effect on Dec. 15. While experts concede that Seoul’s decision to expand its ADIZ was a natural decision for a sovereign state, they have expressed concerns over possible conflict in the airspace above Ieo Island, where the ADIZs of South Korea, China, and Japan overlap. [ADIZ] [China confrontation]
• PRC Regrets ROK KADIZ Surprise
  Update: Japan announced its acceptance of the South Korean ADIZ. The Japanese government statement involved some complicated parsing to reconcile its acceptance of the ROK zone with its rejection of the PRC zone. Japan stated that the ROK zone does not impinge on airspace over territories effectively controlled by Japan, and Japan does not assert ADIZ over airspace of territories of which it does not exercise administrative control (like the islands north of Hokkaido). But Japan is apparently still maintaining its ADIZ over Ieodo since it is an underwater reef and not a territorial feature. As for the ROK, its ADIZ extends over territory it does not control i.e. North Korea for very good reasons of national security that reflect the baseline intention of the ADIZ: early warning in case of attack. So the PRC, if somewhat discombobulated by the ROK initiative, can push back against Japan's attempt to redefine the appropriate scope of an ADIZ in order to leverage its administrative control of the Senkakus. And, by not pulling back from Ieodo, Japan did not provide any incentive or pressure for the PRC to reconsider the inclusion of Ieodo in its ADIZ. CH--12/9/13 As is well known, South Korea responded to the PRC's declaration of its ADIZ by expanding its own. As is less known, the PRC had consulted with the ROK prior to declaring its ADIZ, presumably with the expectation that South Korea would not create issues of its own as the PRC girded for the firestorm of opposition it could expect from the Japan and US. [ADIZ]
• Why Ieodo matters
  Boats circle the Seoul-run ocean research center built atop Ieodo, a submerged rock 150 kilometers southwest of Marado, the nation’s southernmost island in this undated file photo. Experts say maritime delimitation in the East China Sea is an increasingly important issue for Korea. / Korea Times file Reef vital to protecting Korea’s economic zone By Kim Young-jin Some 150 kilometers southwest of Marado, the nation’s southernmost island, sits Ieodo, a submerged rock with a unique place in Korean lore. As the story goes, fishermen from Jeju Island were destined to spend eternity there should they perish in rough waters. What’s not myth is the significance of the reef to Korea, whose jurisdiction is protested by China despite it being 136 kilometers closer to the Korean Peninsula. Experts say it is important to address the matter given the natural resources in the East China Sea as well as concerns over Beijing’s naval activities. “It is of great strategic interest considering China’s strengthening naval power,” said Kang Byeong-cheol, a research fellow of the Jeju-based Society of Ieodo Research. “Because China is a powerful country, Korea must look after the interests of its exclusive economic zone (EEZ).” [Territorial disputes]
• Fire on the City Gate: Why China Keeps North Korea Close
  Beijing/Seoul/Brussels | 9 Dec 2013 North Korea’s belligerent behaviour is testing the patience of China, its principal backer, but a consequential Chinese policy change, which the U.S. and its allies hope for, is not likely soon. China and North Korea “The cost of sustaining the Kim regime may have increased and the benefits may have declined, but the calculation remains that the potential consequences of cutting Pyongyang loose are unacceptable”. Daniel Pinkston, Crisis Group’s Deputy Project Director for North East Asia. In its latest report, Fire on the City Gate: Why China Keeps North Korea Close, the International Crisis Group examines the relationship between China and North Korea in the light of Pyongyang’s accelerated nuclear activities and provocative rhetoric. Although China shares the West’s goal of a nuclear-free Korean peninsula and implements UN sanctions on the North, its strategy is defined by substantially different priorities. For Beijing, the real threat is not so much in the nuclear program as in a possible change to the delicate geopolitical balance should the regime in the North collapse. The report’s major findings are: •China sees denuclearisation as a goal that can only be achieved in the long term, while peace and stability on the peninsula have to be guaranteed first. It fears that the West’s insistence on diplomatic isolation and economic sanctions could produce unacceptable consequences, such as regime collapse, a refugee flood or a unified Korea as a U.S. ally. It therefore nurtures diplomatic ties and economic engagement, hoping to influence the regime’s thinking. [China NK]
• China Says Jang Song-taek's Ouster an 'Internal Affair'
  A Chinese Foreign Ministry spokesman on Monday said the ouster and arrest of North Korean eminence grise Jang Song-taek is "an internal affair." Beijing "hopes that the North will achieve national stability, economic development and happiness for its people," Hong Lei told reporters. He added it remains committed to maintaining traditionally friendly relations with the North. Hong said he did not know whether the North had notified China of Jang's arrest beforehand. [Jang Song Thaek]
• Korea Declares New Air Defense Zone
  The government on Sunday announced a new air defense identification zone with the same boundaries as Korea's Flight Information Region and overlapping with both the Chinese and Japanese zones. The new zone stretches 236 km south of the submerged reef of Ieo, which also lies in the Japanese and Chinese zones, and includes Marado and Hongdo, an inhabited island that is also part of Japan's zone. The eastern and western boundaries remain the same as before. The old zone had been in place since it was delineated by the U.S. Air Force in March 1951, in the middle of the Korean War, and was being seen as an anomaly here. The move comes after China unilaterally last month declared its own zone covering Korean-controlled airspace. [ADIZ]
• China Stages Drills Near Korean Peninsula
  The Chinese military has staged massive military exercises around the Korean Peninsula after it declared a new air defense identification zone late last month that partly overlaps with South Korea's and Japan's. The exercises also came amid reports of the ouster of North Korean eminence grise Jang Song-taek. The Shenyang Military Region, one of seven military regions in the Chinese People's Liberation Army that would be mobilized in an emergency on the Korean Peninsula, last Wednesday began cold-weather exercises in and around Mt. Baekdu, which marks the border with North Korea, the official Chinese military paper said Saturday. It said some 3,000 soldiers from the Shenyang Military Region moved to a training ground near Mt. Baekdu, and are practicing to improve their operational capabilities in cold weather and unfamiliar terrain.
• Del Rosario Eagerly Throws Gasoline on ADIZ Fire...
  ...But Should Be Worried About the Iron Law of Unintended Consequences Friday, December 06, 2013 A commenter took issue with this piece in its original form. I thought his comments about the tone were well-taken, and I've revised the text accordingly. As an admonition to myself, the chinahand Twitter feed will be updated to "Less heat more light". Also, he got me to thinking about the ADIZ friction we can expect over the South China Sea and I'm lifting my reply from the comments and placing it here. CH 12/7/13 First of all, I want to apologize for use of the word "stupid". It was inaccurate and inflammatory. I will revise the post accordingly. Come to think of it, I consider Del Rosario's characterization of the ADIZ as well as the Coast Guard regs inaccurate and inflammatory, and very much part of his strategy to heighten the confrontation between the Philippines and the PRC. I don't see him playing good cop/bad cop with President Aquino; I believe he sees polarization as a mechanism to attract stronger, more overt US and Japanese backing for the Philippines. And, since I don't see the US and Japan providing firm military backing for the Philippines in its dispute with the PRC, I don't see a viable endgame for Del Rosario's strategy--unless he sees benefits for the Philippines in being lined up against the PRC in an economic cold war. As for the ADIZ, it is as its name indicates an "Identification Zone". It has nothing to do with claiming "domestic air space". The Philippines would be well within its rights (and justified for air defense concerns) to declare its own ADIZ in the South China Sea, overlapping with the Chinese one if need be. I think it would have been good if everybody filed flight plans with everybody else for their aircraft, military and civilian. [ADIZ]
• The Chinese dream and its appeal
  China.org.cn, December 7, 2013 --Keynote Speech at the International Dialogue on the Chinese Dream By Cai Mingzhao, Minister of the State Council Information Office (December 7, 2013 Shanghai) Cai Mingzhao, Minister of the State Council Information Office, delivered a keynote speech at the International Dialogue on the Chinese Dream in Shanghai on Dec.7, 2013. [Photo: China.org.cn] Distinguished guests, Ladies and gentlemen, I am very glad to be here with you today in Shanghai to talk about the Chinese Dream. Sitting by the Yangtze River and facing the sea, Shanghai is China's gateway to the world and a window for people to learn about our country. It is therefore of special significance to hold the International Dialogue on the Chinese Dream here, in this wonderful city. On behalf of the State Council Information Office, I would like to express my cordial welcome to all our guests, and my sincere gratitude to those who have come all the way from other countries! In November last year, soon after the conclusion of the 18thNational Congress of the Communist Party of China (CPC), President Xi Jinping put forward, for the first time, the idea of the Chinese Dream on a visit to “The Road towards Renewal” exhibition at the National Museum of China. In March this year, he further elaborated on the Chinese Dream in his speech at the closing ceremony of the First Session of the 12thNational People's Congress. Since then, he has talked about the concept on a number of occasions. Xi stressed that the Chinese Dream means the great rejuvenation of the Chinese nation. It embodies achieving prosperity for the country, renewal of the nation and happiness for the citizens. Only when the country is doing well, can the nation and people do well. [Softpower] [China vision] [Xi Jinping]
• US senior advisor: China's new air defense zone is legal
  By He Shan China.org.cn, December 7, 2013 Kenneth Lieberthal, senior fellow in Foreign Policy and Global Economy and Development at the Brookings Institution, gives a keynote speech at the opening ceremony of International Dialogue on the Chinese Dream in Shanghai on Dec.7, 2013. [China.org.cn] Kenneth Lieberthal, senior fellow in Foreign Policy and Global Economy and Development at the Brookings Institution, said that China's newly-established Air Defense Identification Zone (ADIZ), which covers the disputed Diaoyu Islands, is legal, and China has the right to set up such an air space. "I think China's decision to announce an ADIZ reflects its increasing maritime capabilities. It reflects the gradual change in the balance of power in Asia," Lieberthal told China.org.cn on the sidelines of the International Dialogue on the Chinese Dream, held in Shanghai. His remark came after U.S. Vice President Joe Biden concluded his trip to Japan, China and South Korea this week. After provocations from Japan increased tensions over the Diaoyu Islands, discussion about the establishment of the new zone became the focus point of Biden's trip. Lieberthal said that the announcement of the zone and the reaction from the U.S. and other countries in the region highlights the importance of all countries in the region working together to develop mechanisms to handle disagreements and manage crises. [ADIZ]
• China pulls out of UN process over territorial dispute with Philippines
  • Move underscores China's tough geopolitical stance in region • Territorial claims continue to dominate visit by Joe Biden Paul Lewis in Washington theguardian.com, Friday 6 December 2013 18.25 GMT China is taking the highly unusual step of refusing to participate in a United Nations arbitration process over a territorial conflict with the Philippines, one of five countries challenging Beijing’s claims of ownership over the oil-rich South China Sea. The legal dispute underscores the tough geopolitical approach China is adopting in the Pacific region. It has adopted an aggressive approach toward neighbours over a 2,000-mile stretch that also includes the East China Sea, over which it recently declared the air defence identification zone that has inflamed tensions with Japan and South Korea. China sent its only aircraft carrier to the disputed waters off the coast of the Philippines for the first time last week, in a move Manila said raised tensions. China’s military said the carrier Liaoning will conduct drills in the area, accompanied by two destroyers and two frigates. Dealing with the fallout over China’s territorial claims has become the dominant issue for the US vice-president, Joe Biden, who is currently touring the Asia Pacific region. [Territorial disputes]
• South Korea expands air defense zone to partially overlap China's
  By Jack Kim and Jane Chung SEOUL Sun Dec 8, 2013 9:37am EST A group of disputed islands, Uotsuri island (top), Minamikojima (bottom) and Kitakojima, known as Senkaku in Japan and Diaoyu in China is seen in the East China Sea, in this photo taken by Kyodo September 2012. Credit: Reuters/Kyodo Related Video South Korea announces new air defence zone (Reuters) - South Korea said on Sunday it has extended its air defense zone to partially overlap with a similar zone declared by China two weeks ago that has sharply raised regional tensions. Beijing's unilateral declaration of an air defense identification zone in an area that includes islands at the heart of a territorial dispute with Japan has triggered protests from the United States and its close allies Japan and South Korea. Announcing the expansion of its own zone to include two territorial islands to the south and a submerged rock also claimed by China, South Korea's Defence Ministry said the move would not infringe on neighboring countries' sovereignty. "We believe this will not significantly impact our relationships with China and with Japan as we try to work for peace and cooperation in Northeast Asia," defence ministry head of policy Jang Hyuk told a briefing. "We have explained our position to related countries and overall they are in agreement that this move complies with international regulations and is not an excessive measure," he said, adding that the ministry's top priority was to work with neighboring countries to prevent military confrontation. [ADIZ]
• Ambassador Liu Hongcai Visits Sepho Grassland Reclamation Project
  By Adam Cathcart | December 06, 2013 Print Friendly Sino-NK has been paying the Sepho Grassland Reclamation Project in North Korean Gangwon Province attention throughout 2013; however, first hand accounts of the project remain hard to come by. Lo, enter the Ambassador of the People’s Republic of China, Liu Hongcai, who (perhaps astonishingly, given reports of poor Chinese-DPRK relations) visited the site on October 17 this year. Fortunately, the website of the Chinese embassy in Pyongyang subsequently published a detailed report of the visit, a number of interesting pictures and what, for North Korea, amounts to a blitz of new data and intriguing details. Chief Editor Adam Cathcart has translated the entire report, which plays an important role in the featured essay, “Sino-NK 2013 Rewind: Sepho and the ‘Quiet Charisma’ of Grassland Reclamation.” The article translation is as follows: On October 17, PRC Ambassador to North Korea Liu Hongcai and some diplomats from the PRC embassy went to the Sepho Grassland Reclamation Project in DPRK’s Gangwon province for an on-site inspection. People working for the DPRK Foreign Ministry, Kangwon Province Foreign Affairs Department and the Sepho District Economic Management Committee also accompanied the ambassador. According to [the North Koreans'] introduction, the Sepho District lies 70 kilometers south of Kangwon Province Provincial capital Wonsan City. From south to north, it stretches 27 kilometers, and is six kilometers wide east to west. It has abundant wind and frequent, heavy rain, with strongly acidic soil. It is a difficult, inconvenient place for farming. Following from the plans of the Workers’ Party of Korea Central Committee, the Sepho Grassland Reclamation Project was initiated in November 2012. Shock Brigade workers hailing from all corners of the DPRK came to help in the opening up and reclaiming of the waste land. Having experienced bitter struggle, within one year of reclamation work being completed, the face of the grasslands has now reached more than 50,000 hectares. They are cultivating Jerusalem artichokes and all kinds of grasses. They have started breeding cattle, lamb, pigs, and other livestock. Locally, workers are still urgently advancing the construction of the Management Centre, agronomy research office, tannery and homes for herdsman, gardens and greenhouses; construction is ongoing. According to the plans by 2017 the Sepho grasslands will be able to produce upwards of 10,000 tonnes of fodder and each year producing more than 1000 tons of all types of meat. [China NK]
• 55 Airlines Comply with Chinese Air Defense Zone
  Since China declared a new Air Defense Identification Zone, 55 airlines from 19 countries have notified China of their flight schedules over the zone, according to the Chinese Foreign ministry. Chinese Foreign Ministry spokesman Hong Lei told reporters on Tuesday afternoon, "China has gained understanding from an increasing number of countries over the establishment of the zone." The Chinese Defense Ministry also said that "perfect identification" of aircrafts within the zone is being achieved, reflecting Beijing's confidence that it can make the zone an established fact. [ADIZ]
• David Cameron urges British students to ditch French and learn Mandarin
  PM ends three-day visit to China by telling young people they should learn language that will 'seal tomorrow's business deals' Nicholas Watt in Chengdu and Richard Adams The Guardian, Thursday 5 December 2013 David Cameron, who has notoriously poor schoolboy French, is urging today's youngsters to abandon the language of Molière and Voltaire to concentrate on the tongue of the future – Mandarin. In a parting shot, as he left China after a three-day visit, the prime minister said that pupils should look beyond the traditional French and German lessons and instead focus on China. To reinforce his message the prime minister quoted Nelson Mandela, who said learning someone else's language is the best way to their heart. Cameron said: "I want Britain linked up to the world's fast-growing economies. And that includes our young people learning the languages to seal tomorrow's business deals. "By the time the children born today leave school, China is set to be the world's largest economy. So it's time to look beyond the traditional focus on French and German and get many more children learning Mandarin. [China rising] [Language]
• Korean communications project caught between US-China tensions
  Posted on : Dec.5,2013 14:31 KST Washington has reportedly expressed concern over Chinese involvement in building of LTE network By Jung E-gil and Lee Soon-hyuk, staff reporters South Korean communications projects are being affected by frictions between the US and China. The Wall Street Journal reported on Dec. 3 that the administration of US President Barack Obama was raising concerns about a Chinese communications company taking part in a South Korean project to build a state-of-the-art wireless network. [Dilemma]
• Let’s Be Friends
  By John Delury 05 December 2013 US Vice President Joseph Biden’s tour of Northeast Asia could not be timelier, as the region has turned into something of a hornet’s nest. China’s recent declaration of an Air Defense Identification Zone (ADIZ) is just the latest twist to trends years in the making that are dangerous and disturbing: sparring between Tokyo and Beijing over disputed islands; bad blood between Tokyo and Seoul over historical issues and disputed rocks; provocations by Pyongyang and war games by US-ROK forces; and signs of strain between allies Pyongyang and Beijing. These trends raise a number of disturbing questions. Could Japan and China go to war over the Senkaku/Diaoyu Islands, and how would the US respond? Can Japan and South Korea ever settle their historical grievances, or is the US dream of a trilateral security structure delusional? Is Kim Jong Un risk tolerant enough to trigger a war and how would China respond to a “contingency” in Korea? Has Beijing, under the new leadership of Xi Jinping, made a fundamental shift to seeing North Korea as a liability rather than an asset? [China SK]
• Association of Foreign Relations inaugurated in Taipei
  Association of Foreign Relations inaugurated in TaipeiROC Vice President Wu Den-yih (center) and former Vice President Vincent C. Siew (fifth left) are joined by current and former government officials at the inauguration of the Association of Foreign Relations Dec. 4 in Taipei City. (CNA) •Publication Date:12/05/2013 •Source: Taiwan Today The Association of Foreign Relations was launched Dec. 4 in Taipei City, underscoring ROC government efforts to promote ties across a spectrum of areas between Taiwan and its partners around the world. “By canvassing input from the academic, business and public sectors, as well as providing policy suggestions, the association will help increase the country’s global visibility,” ROC Vice President Wu Den-yih said at the launch ceremony. “It will also facilitate the policy goal of building up Taiwan while linking with the Asia-Pacific region and beyond, forging a global presence and contributing to regional and global stability.” [Softpower]
• China Tips Its Hand
  Dan Blumenthal | December 5, 2013 Unfortunately for Vice President Joe Biden, Chinese decision-making is a mystery that often works to its advantage. Consider this: the week before Biden left for Japan, South Korea, and China, Beijing announced an illegitimate and provocative Air Defense Identification Zone. The timing and brazenness of the action raised questions in Washington about who is really calling the shots in China, and about President Xi Jinping’s policy inclinations. Creating such doubt can serve China’s strategic purposes. Beijing ensured that the Biden trip would be focused on China’s claims in the East China Sea, rather than on Washington’s agenda of getting more support from China on denuclearizing North Korea, pushing Chinese economic reform, and other issues China would rather not discuss. Beijing’s moves put Japan and the United States on the defensive and engendered concern about internal politics in China. This provides Beijing with leverage. The more Washington worries that there is an out control aggressive faction in China, the more Xi can argue for more “understanding” of how “sensitive” the Japan issue is in Chinese domestic politics and how the U.S. would “only strengthen the hardliners” if it reacts too strongly. That argument is itself brazen, as China’s propaganda machine is responsible for teaching the Chinese people that pacifist, democratic Japan is still Imperial Japan. [ADIZ] [MISCOM] [China confrontation]
• Why Mandarin is tougher than David Cameron thinks
  The prime minister wants schoolchildren to learn Mandarin, but it is a notoriously difficult language. From filthy mistakes to the impossibility of text messaging, here are eight of the biggest challenges David Cameron wants our schools to teach Mandarin. But China's first language has a reputation as one of the hardest in the world. Can we really expect our kids to get their heads round it? Here are eight reasons why – for a native English speaker – learning Mandarin is one of the trickiest tasks there is. 1. You'll find the writing baffling … Mandarin uses characters, rather than a phonetic alphabet. You need to recognise around 3,000 characters to read a Chinese newspaper. "The problem with Chinese all has to do with the writing system," says Dr David Moser, academic director at CET Beijing. "It's such a massive obstacle that there are people who make their careers here who make the decision just to ignore writing and reading because it isn't worth it." 2. … and the tones a nightmare Mandarin is tonal. The way a word is spoken determines what it means. So the word "ma", for example, can mean either "horse" or "mother", depending on which of four tones it is spoken in. "Pretty much everybody learns the tones wrong the first time," says translator Brendan O'Kane, one of the presenters of podcast Popup Chinese. "And then, after a few years, they realise they sound ridiculous." 3. The mistakes can be filthy The tonal system leads to some embarrassing errors. The word for "ask", for example, is one tone away from the word "to kiss", and the word for pen is one tone from a word for female genitalia. So students tend to ask their teachers some inappropriate questions. [Language]
• Huawei’s South Korea Project Draws U.S. Scrutiny
  By Bloomberg News - Dec 4, 2013 10:32 PM GMT+1300 . Huawei Technologies Co., China’s largest maker of phone network equipment, said there is no basis for U.S. scrutiny of its contract to supply broadband equipment for a project in South Korea. “Our gear is world-proven and trusted, connecting almost one-third of the world’s population,” Scott Sykes, a spokesman for Shenzhen-based Huawei, said in an e-mail today. “The motivations of those that might groundlessly purport otherwise are puzzling.” U.S. Senator Dianne Feinstein, chairman of the Select Committee on Intelligence, and Senator Robert Menendez, who leads the Committee on Foreign Relations, sent a letter last week to Defense Secretary Chuck Hagel, Secretary of State John Kerry and James Clapper, the director of national intelligence. The lawmakers expressed concern that Huawei’s involvement creates risks for the U.S.-South Korea alliance, including for U.S. troops based on the peninsula. “Maintaining the integrity of telecommunications infrastructure is critical to the operational effectiveness of this important security alliance,” the two senators wrote on Nov. 27 in the letter obtained by Bloomberg News. “Reports that Huawei has been selected to develop and/or supply the Republic of Korea’s advanced LTE telecommunications backbone raise serious questions and potential security concerns.” [China confrontation] [Cybersecurity] [US dominance] [Dilemma] [Extraterritoriality]
• South Korea caught in crossfire amid air defence zone row
  27 November, 2013 – South China Morning Post China’s air defence zone aimed at Tokyo puts South Korea in an awkward position South Korea is finding itself caught in the crossfire amid growing Sino-Japanese tensions after Beijing’s declaration of a new air defence zone (ADIZ) that overlaps with those of Japan and Korea. Local media reported that although China’s air defence zone was aimed at Japan, it turned Korea into a “piggy in the middle” as Beijing tries to expand its defence zone to the east and Tokyo to the west. “Korea has become sandwiched [between Beijing and Tokyo] as China and Japan flex their muscles,” said a report in the conservative Seoul-based newspaper JoongAng Ilbo. On Thursday, South Korea’s foreign minister Yun Byung-se said the issue of China and Japan’s ADIZ had emerged as a situation that further intensified tensions in Northeast Asia. China’s air defence zone overlaps with some 3,000 square kilometres of South Korea’s and Seoul has told Beijing that it cannot accept what it sees as Beijing’s unilateral decision. [ADIZ] [Dilemma]
• How Long Will China Tolerate America's Role in Asia?
  Posted By Stephen M. Walt Monday, December 2, 2013 - 9:45 AM Share What's the BIG question? If you were trying to predict the course and character of world politics for the next 50 years or so, what question would you like to know the answer to today? It's easy to think of different candidates, such as: 1) will climate change continue unabated with far-reaching effects on the world economy and low-lying areas?; 2) will the euro survive? 3) will terrorists ever acquire and use a weapon of mass destruction?; 4) will there be a major global pandemic? And so forth. All good questions, but the future of Sino-American relations should be on everyone's list of Top 5 "Big Questions." And on that subject, the main issue is whether China will continue to tolerate America's extensive and powerful military presence in East Asia or whether it will conduct a sustained effort to drive a wedge between the United States and its current allies and eventually force the United States out of the region. [China confrontation] [China rising] [F&E]
• U.S. Alliance system and Northeast Asia regional cooperation
  by Chen Jimin, 3 December 2013 / 3?12? 2013 I. INTRODUCTION In this Special Report, Chen Jimin makes three observations and three suggestions while discussing the U.S. alliance system in Northeast Asia. The first observation is that the U.S. alliance system in Asia constrains Asian regional integration. The second observation is that the U.S. alliance system challenges relations among major powers such as the U.S., China and Russia. The third observation is that the U.S. alliance system causes uncertainty in U.S.-Sino relations. Three suggestions flow from those observations: 1) View history correctly; 2) Promote cooperation and promote regional cooperation. He offers the Africa model as an example of a cooperative model; and 3) Promote cooperation by starting with the easiest tasks and working toward the more difficult tasks. Dr Chen Jimin is an Assistant Research Fellow at the Institute for International and Strategic Studies of the Party School of the Central Committee of the Communist Party of China. [Alliance] [China confrontation]
• US alliance no deterrent to mature Seoul-Beijing ties
  Global Times | 2013-11-19 23:43:01 By Scott Snyder The Asan Beijing Forum held over the weekend provided an opportunity for in-depth, high-level discussion on challenges and opportunities for China-South Korean relations, which have progressed beyond anyone's expectations over two decades on the back of economic opportunity. The trade relationship has ballooned from around $6 billion at the time of normalization in 1992 to over $250 billion in 2012, which is larger than South Korea's trade volume with the US and Japan combined. Future progress in the relationship will have to expand beyond its economics-driven focus for its full potential to be realized. However, enhanced Sino-South Korean political and security cooperation will require the two countries to squarely address two fundamental issues on which consensus will be hard to find: North Korea and the future of the US-South Korean security alliance. One initial test is whether China and South Korea can see eye-to-eye on the necessity of North Korea's recommitment to abandonment of its nuclear weapons as a prerequisite to resumption of Six-Party Talks. Longer-term, China supports institutionalization of the Six-Party Talks while South Korean President Park Geun-hye is pushing a new vision and process for institutionalizing functional Northeast Asian cooperation that does not require North Korean denuclearization as a prerequisite. The fundamental geopolitical issue dividing the two countries on North Korea involves contradictions over the preferred end state on the Korean Peninsula. South Korea's policy for over two decades sought to achieve peaceful unification of the peninsula, presumably as a market democracy under Seoul's leadership. [Dilemma] [Takeover] [Wishful thinking]
• Korea Delays Decision on Air Defense Zone
  The government has postponed a decision to expand its Air Defense Identification Zone until after a visit to Korea by U.S. Vice President Joe Biden this week. Seoul had originally wanted to announce the new boundaries unilaterally following a similar move from China but now feels that some discussion with the U.S. and regional neighbors is needed. A key Saenuri Party official said Monday, "A meeting scheduled for Tuesday between party and government officials about the air defense identification zone has been postponed at the government's request." A government official said the expansion of the zone requires further fine-tuning. [ADIZ] [Dilemma]
• [News analysis] Seoul should consider national interest first
  Posted on : Dec.3,2013 15:45 KST US Vice President Joseph Biden points as he arrives at Tokyo’s Haneda Airport on the night of Dec. 2 to start a trip through Northeast Asia that will include stops in Seoul and Beijing. Biden was greeted at the airport by Caroline Kennedy (third from the right), the new US ambassador to Japan. (Reuters/News1) Analysts say South Korea should avoid choosing sides between US and China By Park Byong-su and Choi Hyun-june, staff reporters The rocky political situation in Northeast Asia in the wake of China’s announcement of a new air defense identification zone (ADIZ) looks set to hit a critical moment this week. With US Vice President Joseph Biden arriving on Dec. 2 for visits to Japan, China and South Korea, experts are already making predictions about a resolution to the military standoff between China on one side and the US and Japan on the other. But with the US also looking likely to use Biden’s visit to demand more South Korean coordination with it and Japan, some experts are worried that Seoul could face a crucial choice in its efforts to achieve “balanced diplomacy” with Washington and Beijing. [Dilemma]
• S. Korean civilian aircraft won’t provide flight plans to China
  Posted on : Dec.3,2013 15:42 KST Seoul says providing flight plans would be a tacit recognition of new zone claimed by China By Kim Kyu-won and Noh Hyun-woong, staff reporters The government decided to continue instructing South Korean civilian aircraft that are passing through China’s air defense identification zone (ADIZ) not to submit their flight plans to China. The US already advised its civilian aircraft flying through the zone to inform China of their flight plans. The Japanese government, which is preventing its civilian aircraft from submitting flight plans as South Korea is, reportedly expressed its dismay about the American measures. “The flight path from Korea to Southeast Asia passes through the air defense identification zone announced by China, but we have told civilian airlines not to provide their flight plans to China just as they have done in the past,” an official at the Ministry of Land Infrastructure and Transport who spoke on condition of anonymity said on Dec. 2. “This route is approved by the International Civil Aviation Organization, and air defense identification zones have no standing in international law. It is our position that China cannot take any coercive action against civilian aircraft,” the official said. However, civilian aircraft flying from South Korea to China naturally submit their flight plans to the country since they are passing through its air space, and these are also shared with the Chinese air force. The South Korean government decided to postpone the announcement of the expansion of it ADIZ to include Ieo Island until after this week’s visit by US Vice President Joseph Biden (Dec. 5-7). According to the ministry’s guidelines, aircrafts hailing from South Korea will not submit flight plans when they only pass through China’s air defense identification zone without entering its airspace. “Since this is not an issue for airlines to decide on their own, we don’t have any particular opinion on that matter,” said Ma Jae-young, head of public relations for Asiana Airlines. “The US and Japanese governments have their own positions on the issue. All we will do is follow the directions of the Ministry of Land, Infrastructure and Transport.” When asked about the safety of passengers and any concerns they might have, Ma said, “The air defense identification zone that China announced does not affect civilian aircraft. We are operating our aircraft according to standard practice.” The South Korean government is maintaining a wait-and-see attitude regarding the controversy about whether American and Japanese civilian aircraft that are entering China’s ADIZ will provide their flight plans to the country. “If we provide flight plans to China too easily, it will give China a say over that airspace,” the ministry official said. “Since this would be acknowledging the air defense identification zone declared by China, we will have to consider this carefully.” [ADIZ] [China confrontation] [US dominance]
• China’s claims bring on changing order in Northeast Asia
  Posted on : Dec.2,2013 15:57 KST The USS George Washington aircraft carrier and Japanese vessels during joint military exercises in waters off the Philippines, Nov. 28. (provided by the US Navy) US reportedly instructs its civilian carriers to abide by ADIZ claimed by China By Jung E-gil, senior staff writer and Seong Yeon-cheol, Beijing correspondent Big changes are taking place in the skies and seas of Northeast Asia. In connection with China’s announcement on Nov. 23 about its air defense identification zone (ADIZ) in the skies above Northeast Asia, the US instructed its civilian airlines to follow the protocol outlined by China. After one week of heightened tensions following China’s measures, the US appears to be seeking compromise by partially accepting China’s announcement. This represents the first time that China has officially expanded its claims over space in the skies and seas of Northeast Asia since the People’s Republic of China was established in 1949. The next question is how Japan and South Korea, which have protested the measures furiously, will respond. In a statement released on Nov. 29, the US State Department said, “The U.S. government generally expects that U.S. carriers operating internationally will operate consistent with NOTAMs [Notices to Airmen] issued by foreign countries.” The statement instructs US civilian airlines to abide by the associated protocol in China’s ADIZ. But the statement also emphasized that “our expectation of operations by U.S. carriers consistent with NOTAMs does not indicate U.S. government acceptance of China’s requirements for operating in the newly declared ADIZ.” Explaining that they had been discussing the issue with civilian carriers since Nov. 27, US government officials said that they had decided to make the instructions based on existing regulations in international aviation and not because of political considerations. These officials said that the instructions only apply to civilian carriers and not to military aircraft. Pentagon spokesperson Steve Warren said on Nov. 29, “These flights are consistent with long standing and well known U.S. freedom of navigation policies. I can confirm that the U.S. has and will continue to operate in the area as normal.” While US government officials are making clear that the US rejects China’s unilateral declaration of an ADIZ in the East China Sea, the New York Times argued that the guidelines to civilian airlines can be interpreted as a concession in the battle of wills with China in the region. With the US, which supervises the international civilian aviation order, instructing its civilian aircraft to abide by China’s ADIZ, it seems likely that the zone will effectively function on an international level. [ADIZ] [China confrontation] [US dominance]
• [Column] South Korea’s role as regional facilitator
  Posted on : Dec.3,2013 15:40 KST It makes no sense to choose a side between alliance with US and relationship with China By Song Min-soon, former Foreign Minister In March 2008, Admiral Tim Keating, then commander of US Pacific Command, made a statement before the United States House Committee on Armed Services that foreshadowed one aspect of the struggle between the US and China for hegemony. Keating recalled how a high-ranking member of the Chinese military had proposed splitting the Pacific into two halves at Hawaii, with the US overseeing the east half and China the west. While Keating said that this had been spoken in jest, he had viewed it as being significant enough to include in his testimony before the committee. [Allegiance] [Dilemma]
• Carriers told to ignore China rule
  By Kim Jae-won The government instructed Korean carriers Monday not to comply with China’s new air defense zone rule over the East China Sea, raising worries that it may put passengers’ safety at risk. The Ministry of Land, Infrastructure and Transport said that it ordered airlines not to submit flight plans to China, ignoring the neighboring country’s demand that it be told of any flights passing through the zone. “We instructed airlines to stay on their initial stance over the air defense zone,” said Hong Seong-min, a ministry official. At the same time, the government plans to expand its own air defense zone and start to explain it to the United States, China and Japan from next week. [ADIZ] [China confrontation] [US dominance]
• China’s Carrier Killer: Threat and Theatrics
  By Otto Kreisher The DF-21D missile is a legitimate threat to carrier-based airpower, but at times the concern has bordered on hysteria. In the history of warfare, there have been numerous weapons described as “game changers” that promised to nullify the dominant weapons of the day. Stone castles fell prey to gunpowder. Integrated air defenses were overcome by stealth. Sometimes new weapons brought tremendous advantages, but they have often proved short-lived, as countermeasures—in the form of defensive weapons or tactics—have always arisen to blunt the effect of the new technology. Today, some are predicting the demise of the aircraft carrier—a potent tool of American power projection for more than 90 years—at the hands of China’s DF-21D anti-ship ballistic missile (ASBM), widely labeled the “carrier killer.” This medium-range, high-speed missile with a terminal homing warhead is touted by many analysts as reducing nuclear-powered carriers, with their complement of 70-odd aircraft each, to sitting ducks. Longtime critics of the Navy’s multibillion-dollar carriers have cited the DF-21D as justification to sharply reduce the flattop fleet, declaring them hopelessly obsolete. Naturally, not all see it that way. Senior defense officials—including top Navy and Air Force officers—suggest reports of the carrier’s demise, to paraphrase Mark Twain, are premature. The DF-21D—NATO designation CSS-5 Mod 4—is part of the family of Dong Feng (“East Wind”) ballistic missiles. China has hundreds, in a number of variants. Based on Chinese defense documents, what sets the -21D apart from the others is that it has a maneuverable re-entry vehicle with synthetic aperture radar (SAR) and optical sensors, which could enable it to hit a moving target. The two-stage, solid-fuel missile has an operational range variously estimated at 1,035 to 1,726 miles and a conventional warhead considered powerful enough to inflict at least a “mission kill”—meaning that a direct hit could cause enough damage to make a US carrier unable to conduct flight operations. Chinese defense literature describes a salvo of DF-21Ds first crippling the carrier and then sinking it with later hits. Such a range could threaten a carrier well outside the combat radius of carrier aircraft without in-flight refueling. That makes the DF-21 a key element in China’s strategy of developing an anti-access, area-denial (A2/AD) capability. The missile could potentially prevent the Navy from intervening in a conflict with Taiwan or with one of its neighbors [China confrontation] [Military balance]
• For Biden in China, tense reunion with Xi Jinping
  U.S. Vice President Joe Biden, left, is welcomed by Japanese Prime Minister Shinzo Abe prior to their talks at Abe's official residence in Tokyo Tuesday, Dec. 3, 2013. (AP Photo/Toru Yamanaka, Pool) TOKYO — In what was supposed to be a warm reunion, Vice President Joe Biden and Chinese President Xi Jinping meet instead Wednesday in a climate fraught with tension over an airspace dispute that has put Asia on edge. A day before seeing Xi, Biden stood in Japan and publicly rebuked China for trying to enforce its will on its neighbors, escalating the risk of a potentially dangerous accident. Although Biden had hoped to focus on areas of cooperation as the U.S. seeks an expanded Asia footprint, China's declaration of a new air defense zone above disputed islands in the East China Sea has pitted the U.S. and China against each other, creating a wide gulf that Biden will seek to bridge during his two-day trip to Beijing. Despite Washington's preference not to get involved in a territorial spat, concerns that China's action could portend a broader effort to assert its dominance in the region has drawn in the U.S., putting Biden in the middle as he jets from Japan to China to South Korea on a weeklong tour of Asia. "We, the United States, are deeply concerned by the attempt to unilaterally change the status quo in the East China Sea," Biden said after meeting in Tokyo on Tuesday with Japanese Prime Minister Shinzo Abe. "This action has raised regional tensions and increased the risk of accidents and miscalculation." To that end, Biden said he would raise those concerns with China's leaders "with great specificity" during his Beijing visit. Although the U.S. has repeatedly said it rejects the zone, Biden has avoided calling publicly for Beijing to retract it, wary of making demands that China is likely to snub. Rather, the U.S. hopes that with enough pressure, China will refrain from strictly enforcing the zone, essentially nullifying it for practical purposes. What's more, the U.S. wants to show that the diplomatic consequence for such actions are severe enough that China will think twice in the future about asserting its authority in such heavy-handed ways. [ADIZ] [China confrontation] [Double standards]
• More Fun With China’s ADIZ
  I am unwilling to join the rest of China pundits on the fainting couch, overcome with dismay and disapproval at the PRC’s unilateral declaration of an ADIZ. All the big kids have an ADIZ. The PRC has an ADIZ. I don’t think it’s going anywhere and we should get used to it. To me, the important story is that Japan is using the ADIZ uproar to claim regional military flight rights that only the United States claims—and civilian flight rights that nobody, including the United States enjoys. This, to me, is part of Prime Minister Abe’s ambitions to make Japan an independent security peer—and not a tractable ally—of the United States in East Asia. [ADIZ] [Abe Shinzo] [Japanese remilitarisation] [Double standards] [Client]
• Has Abe overreached on China's ADIZ?
  By Peter Lee Japanese Prime Minister Shinzo Abe has cleverly exploited the China's unilateral announcement of its air defense identification zone (ADIZ) in order to assert Japanese impunity in military flights equal to that of the United States, a key element of Japan's ambitions to act as the local hegemon in oceanic East Asia. That's something that won't please China, of course; but it may also displease the United States as another demonstration of Japan's aspirations to status as an independent peer - and not a tractable ally - in the US "pivot to Asia". But Prime Minister Abe, either as part of his strategy to muddy the waters or in an ill-advised spasm of nationalist elan, seriously overreached with his unprecedented call to Japanese civilian carriers to defy the PRC requirement to file flight plans before entering the ADIZ. [ADIZ] [Abe Shinzo] [Japanese remilitarisation]
• China’s air zone stirs tensions but within rights
  November 30th, 2013 Author: James Manicom, Centre for International Governance Innovation On 23 November China announced the creation of an air defence identification zone (ADIZ) over the East China Sea. All aircraft flying through the zone are required to lodge their flight plan with Chinese authorities and be available for contact by Chinese authorities. Violators will elicit ‘defensive manoeuvres’ from Chinese aircraft, presumably interception. The move comes at a particularly volatile period in China’s foreign relations because most of its maritime neighbours are unnerved by recent Chinese behaviour in East Asian waters. Despite the swift and firm condemnation from the United States, Japan, South Korea and Australia, it bears considering that the Chinese declaration itself is unproblematic; it merely adds China to the minority list of countries — around 20 — that enforce ADIZs beyond their national airspace. However, the zone may increase the risk of an incident over contested waters in East Asia. [ADIZ]
• China invests overseas to develop domestically
  November 26th, 2013 Authors: Karl P. Sauvant and Victor Zitian Chen, Columbia With US$84 billion of outward foreign direct investment (OFDI) flows, China became the world’s third-largest outward investor in 2012, behind the United States and Japan. This signals impressive progress given that the country ranked only 20th a decade ago, when the ‘going global’ policy was launched and outflows during 2000–03 averaged US$3 billion. What are the salient features of these flows and why and how is the government helping Chinese firms to invest abroad? [ODI] [Going out]
• Will Park condemn China?
  By Kim Tae-gyu Will President Park Geun-hye openly criticize China over its surprise announcement of an air defense identification zone (ADIZ)? Park has made no public condemnation of Beijing despite the growing standoff between the United States and Japan on one side and China on the other. Now, with U.S. Vice President Joe Biden coming to town this week as part of a three-nation trip that also takes him to Beijing and Tokyo, President Park may have to make her mind up. The supposed dilemma for Park lies in the fact that she has carefully built a relationship with China’s leaders, so she may find it hard to run the risk of sending it back to square one. But the U.S. wants to marshal its allies against China in its “pivot” to Asia, now renamed “rebalance.” Biden will arrive in Tokyo today to start his week-long visit with the goal of addressing the ongoing row on overlapping ADIZs. Observers came up with different views on how Park should deal with China’s unilateral declaration of its zone, which infringes on those of Korea and Japan. [ADIZ] [[Dilemma]
• Chinese Territorial Strife Hits Archaeology
  China Has Begun Asserting Ownership of Thousands of Shipwrecks in the South China Sea By Jeremy Page Updated Dec. 2, 2013 1:35 a.m. ET Underwater archaeologist Franck Goddio's team was exploring the wreckage of a 13th-century Chinese junk off the coast of the Philippines when it made an unwelcome discovery about China's maritime muscle in the 21st century. As a twin-prop plane swooped overhead, a Chinese marine-surveillance vessel approached the team's Philippines-registered ship and began broadcasting instructions in English over a loudspeaker. "They said this area belonged to the People's Republic of China, and they told us to scram," recalls one of the people on board last year. "It was pretty scary." Chinese officials confirm the incident took place but say the archaeologists' mission was illegal. With territorial disputes escalating in the waters off China, the Chinese government has begun asserting ownership of thousands of shipwrecks within a vast U-shaped area that covers almost all of the South China Sea, which it says has been part of its territorial waters for centuries [South China Sea]
• ROC Cabinet reaffirms stance on Beijing’s new ADIZ
  ROC Cabinet reaffirms stance on Beijing’s new ADIZThe ROC Cabinet is rock solid on safeguarding national sovereignty over the Diaoyutais, as well as promoting President Ma Ying-jeou’s East China Sea peace initiative as a viable way of resolving disputes in the region. (Photo: Chang Su-ching) •Publication Date:12/02/2013 •Source: Taiwan Today The ROC Cabinet reaffirmed the nation’s sovereignty over the Diaoyutai Islands Nov. 29, stating that it will seek various channels to express strong concern over mainland China’s newly announced East China Sea air defense identification zone. “Beijing did not consult with us before making such an announcement,” the Cabinet said. “The fact that their ADIZ overlaps with ours is not conducive to the positive development of cross-strait ties.” [Straits] [ADIZ] [Diaoyu]
• New railway links regional economic powerhouses
  Xinhua, November 30, 2013 Local railway authorities in Nanchang, capital of east China's Jiangxi Province, announced on Saturday that a new railway link will run through some of the country's most prosperous cities. The Xiamen-Shenzhen link, measuring 502.4 km in length and set with 18 stops during the whole course, will more rapidly connect east China's Fujian Province with the southern powerhouse of Guangdong Province. The link begins operation on Sunday, local authorities said. The railway link is part of an ambitious long-and-medium-term plan for railway network construction that will see eight high-speed passenger rail lines crisscrossing the country by 2015, covering cities with populations over 500,000. Local authorities said that the link will greatly shorten the travel time and make travels more convenient among the Yangtze River Delta Region and the Pearl River Delta Region, the nation's most economically developed regions. [Railways]
• On the «bombshell» dropped by China on 20 November 2013 (I)
  Valentin KATASONOV | 29.11.2013 | 00:00 Since 21 November, an article by well-known financial analyst and blogger Michael Snyder under the headline «China announces that it is going to stop stockpiling US dollars» has spread through the media like wildfire. (1) Michael Snyder’s article We quote: «China just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media. The central bank of China has decided that it is ‘no longer in China’s favor to accumulate foreign-exchange reserves’». Michael Snyder’s article predicts that China’s decision will have serious consequences for the United States. According to Snyder, even if this bombshell does not destroy America, it will still cause the country enormous damage. Can it all really be as the American analyst claims? The bombshell itself, according to Snyder, was dropped on 20 November. It was dropped by a deputy governor at the People’s Bank of China in a speech at an economic forum being held at the Tsinghua University. «It’s no longer in China’s favor to accumulate foreign-exchange reserves», writes Bloomberg, quoting the official’s speech. According to the official, the appreciation of the yuan benefits more people in China than it hurts. It is curious that Snyder, who is an experienced blogger («The Economic Collapse» blog) and a shrewd analyst, interpreted the official’s statement so emotionally. In our opinion, there is nothing particularly sensational in his words. [Reserve]
• ROC commemorates Cairo Declaration
  ROC commemorates Cairo DeclarationThe Cairo Declaration exhibition is providing an opportunity for all sections of Taiwan society to better understand the ROC’s contribution to the victory of the Allies in World War II. (CNA) •Publication Date:11/29/2013 •Source: Taiwan Today A 70th anniversary Cairo Declaration exhibition is being staged at Academia Historica in Taipei City, commemorating the ties between the ROC, U.K. and U.S. during World War II, according to event organizer the ROC Ministry of Foreign Affairs Nov. 28. Issued in 1943 by late ROC President Chiang Kai-shek, British Prime Minister Winston Churchill and U.S. President Franklin D. Roosevelt, the landmark pact is the first international legal paper stipulating the return of Taiwan to the ROC after the second world war, a MOFA official said. [Taiwan]
• Foreign planes identified in China's air defense zone
  Xinhua, November 30, 2013 The People's Liberation Army (PLA) Air Force on Friday identified and verified foreign military planes entering China's recently established East China Sea Air Defense Identification Zone (ADIZ), according to a spokesman for the force. Shen Jinke said fighter jets with the PLA air force on Friday morning took off in an emergency response to verify two reconnaissance aircraft from the United States and identify 10 Japanese planes. "The PLA air force has realized its effective normal monitoring of targets in the zone," Shen said. According to the spokesman, China's air force has been fulfilling its duties and missions since starting air patrols in the ADIZ along with the navy, and it has conducted full-range monitoring as well as timely identification and verification of foreign planes entering the area. Shen said that air force and navy pilots shouldering the patrol mission will work together closely and stay on constant alert to safeguard air defense security. [ADIZ] [China confrontation]
• US responds sternly to China’s declaration of airspace
  Posted on : Nov.28,2013 18:09 KSTModified on : Nov.28,2013 18:12 KST Though G2 say they’re working toward an alliance, recent case shows antagonism when key interests are on the line By Park Hyun, Washington correspondent The G2 states look poised for a conflict over Northeast Asia, with the US responding to China’s declaration of an air defense identification zone in the East China Sea with its own show of force. At a summit in June, US President Barack Obama and Chinese President Xi Jinping agreed in principle to a “new type of great power relationship.” Taking a lesson from historical conflicts between established and emerging powers, they opted to look for a path to peaceful coexistence. But the latest confrontation over the air defense identification zone shows what weak footing their cooperation stands on when key interests are at stake. The US’s decision to respond just two days after the announcement by staging a show of force with B-52 bombers, an advanced strategic weapon, shows how seriously Washington is taking the situation. Its concern seems to be that tolerating the one declaration could lead to more shows of muscle from China to its neighbors in the interest of “upholding territorial sovereignty.” Indeed, China has already said it plans to expand its air defense identification zone into the West (Yellow) Sea and South China Sea. [ADIZ] [China confrontation]
• Analysts: Tensions in Asia could snowball
  By Hannah Allam McClatchy Interactive November 29, 2013 Secretary of Defense Chuck Hagel is escorted on a Japanese troop review by Defense Minister Itsunori Onodera in Tokyo last month. ERIN A. KIRK-CUOMO — Department of Defense The rising tension this week in the East China Sea could force the Obama administration to revive its plan for a “pivot to Asia,” a revamped engagement with China and its neighbors that’s been overshadowed by Middle East conflicts and other crises. President Barack Obama bowed out of two summits in southeast Asia last month because of the U.S. government shutdown. Vice President Joe Biden leaves Sunday for a weeklong trip to Asia and is expected to relay Obama’s concerns with Beijing’s claim last weekend of an “air defense identification zone” in contested waters between China and Japan. U.S. officials are worried that such a provocation invites low-level, tit-for-tat escalations that could build into a real conflict in which the Obama administration would have to intervene on behalf of allied Japan. [China confrontation] [Japanese remilitarisation]

• China scrambles fighter jets towards US and Japan aircraft in disputed air zone
  Escalation of response in South China Sea is the first time China is known to have sent military jets in zone alongside foreign craft Tania Branigan in Beijing and Ed Pilkington in New York The Guardian, Friday 29 November 2013 17.26 GMT China scrambled fighter jets to investigate US and Japanese aircraft flying through its new air defence zone over the East China Sea on Friday as the regional clamour over the disputed airspace escalated. The ministry of defence announced the move, which is the first time China is known to have sent military aircraft into the zone alongside foreign flights, stepping up its response to the challenge after its unilateral establishment of the zone. It previously said it had monitored US, Japanese and South Korean aircraft and had flown routine patrols in the area on Thursday. [ADIZ] [Unique] [Media]
• Flournoy Urges ‘Hedge’ Against China as U.S. Bombers Send a Message to Beijing
  Nov 26, 2013 nBy John T. Bennett in Air Force, Aircraft, Asia-Pacific, China, DoD, Intercepts, International, Obama, Operations, PolicyNo CommentsTags: Aspen, B52s, bombers, China, Obama, Pacific, War The U.S. flew two B-52 bombers over a large area of ocean China recently claimed. The U.S. did not, reportedly, inform Beijing of the B-52s presence there despite China's demand of such notifications. (Tom Pennington/Getty Images) The U.S. flew two B-52 bombers over a large area of ocean China recently claimed. The U.S. did not, reportedly, inform Beijing of the B-52s presence there despite China’s demand of such notifications. (Tom Pennington/Getty Images) Michèle Flournoy is a link to the past of U.S. defense policymaking, having served in various Pentagon posts during each of the last three decades. And she could be its future, with Washington’s rumor mill continuing to turn out speculation she might be the nation’s first female defense secretary. So it was telling Tuesday when Flournoy provided some comments about the future of the U.S.-China relationship just minutes after news broke that the U.S. flew two B-52 bombers over a massive swath of ocean China now says it owns — and claims the right to defend with force, if necessary — without notifying Beijing. During an Aspen Institute-sponsored luncheon in Washington, Flournoy called the relationship with Beijing “the most important strategic question we will face in coming decades.” What’s more, Flournoy hopes U.S. officials (her former colleagues) will soon finalize “a vision” for U.S.-Sino relations “beyond 2014.” Washington must “support China” in becoming “a more responsible stakeholder globally,” she said. But Flournoy quickly turned hawkish, saying America must also “have some hedge” should China continue its aggressive acts and military buildup. The former Pentagon policy chief said Washington must maintain a lethal military and a robust Pacific presence. [China confrontation]
• China to launch first moon mission next month
  By Sophie Brown, CNN November 27, 2013 -- Updated 0127 GMT (0927 HKT) (CNN) -- China is launching its first lunar probe in early December, state-run Xinhua news agency reported Tuesday, just over a decade after the country first sent an astronaut into space. The Chang'e-3 probe -- which will blast off from a Long March 3B rocket in Sichuan province located in southwest China -- is expected to land on the moon's surface in mid-December, a spokesman for the China's State Administration of Science, Technology and Industry for National Defence told Xinhua. The unmanned mission marks China's first attempt at a soft-landing on the lunar surface and the first soft-landing on the moon since the Soviet Luna 24 probe in 1976. [Aerospace]
• Seeking to address the rise of China and non-zero sum relationship modalities: Exploring the Obama administration's China policy
  by Yang Wenjing, 26 November 2013/26 November, 2013 I. Introduction This is the first half of a Two Part Article from Professor Yang Wenjing of the China Institute for Contemporary International Relations in Beijing , China The Article has Two Major Parts:. 1) an Overview of game theory, Descriptions of zero-SUM, non- zero sum ??games and examples of how both have played a role at various times in great power relationships - with specific emphasis on the US-China relationship; 2) an analysis of China policy in the Obama administration with a focus on modalities, connotations and interpretations . In this Policy Forum, Yang Wenjing argues that China's rise not only benefits China, but also the whole world. Toward that end, China's peaceful rise not only requires China's relentless efforts, but also requires understanding and cooperation from the rest of world, especially the United States. China's peaceful rise is based on China's national conditions and social development needs, rather than a challenge to America's dominant status, as China has no intent to change the world order. A zero-sum game is a lose-lose game. Only a non-zero sum approach can produce "win-win", "winning" or "multiple win" results. Yang Wenjing then explores China policy in President Obama's administration, based on official statements she concludes relations between the US and China are in a non-zero sum mode and we should expect Sino-US relations to have a competitive-cooperative relationship, where only through successfully and peacefully dealing with competition can a rational "rebalancing" be realized. [F&E] [Chinese IR]
• Seeking to address the rise of China and non-zero sum relationship modalities: Exploring the Obama administration’s China policy
  by Yang Wenjing, ??:??? 28 November 2013 / 28?11? 2013 This is the second half of a two part article from Professor Yang Wenjing of the China Institute for Contemporary International Relations in Beijing, China. The article has two major parts: 1) an overview of game theory, descriptions of zero-sum, non zero sum games and examples of how both have played a role at various times in great power relationships – with specific emphasis on the U.S.-China relationship; 2) an analysis of China policy in the Obama administration with a focus on modalities, connotations and interpretations. [Chinese IR]
• Korea Defies Chinese Aerial Zone
  A Korean patrol plane flew over the submerged shelf of Ieo on Tuesday without notifying China, three days after Beijing unilaterally announced an air defense identification zone that includes it. Such zones are areas outside territorial waters where overflying aircraft must notify the country that claims them. A military source said the Navy's P-3C maritime patrol plane "conducted surveillance over Ieo," which is home to a Korean research base. The Navy flows a P-3C over Ieo twice a week. The source added that the flights will continue without notifying China. However, the military informed Japan ahead of time about the surveillance flights since Ieo has been part of Japan's air defense zone since 1969. [ADIZ]
• N.Korean Agents Badmouth S.Korea in Chinese Cyberspace
  North Korean agents based in China are spreading negative propaganda about South Korea in cyberspace, intelligence forces here believe. The Chosun Ilbo obtained an intelligence report saying that the North Korean agents post malicious comments on material related to South Korea on Chinese websites or on China's Twitter-like microblogging site Weibo. According to the report, the propaganda include accusations that South Korean maritime police use "lethal" rubber bullets against Chinese fishermen caught illegally fishing in South Korean waters or calls for "traitors" in South Korea to be destroyed. Tracking one suspected North Korean agent who posted malicious comments about South Korea on the Internet, the report found that 73 percent of his or her 174 comments praised North Korea and the remaining 27 percent criticized South Korea. Suspected North Korean agents also claimed on Weibo, which boasts 530 million users, claiming that South Korea is a U.S. colony. [Cyberactivism] [China SK] [Public opinion]
• China’s airspace claim leads to Ieo Island incorporation into KADIZ
  Posted on : Nov.27,2013 16:19 KST Ieo Island has been in an ambiguous position due to claims by Japan and changing international standards By Kim Kyu-won, staff reporter The South Korean government said it plans to look at including the airspace over Ieo Island in the Korea Air Defense Identification Zone (KADIZ). The island has been the subject of controversy lately after China announced on Nov. 23 that it was including Ieo Island in its own air defense zone. The airspace for the island, which is under the effective control of South Korea, is currently included in Japan’s air defense zone. Speaking before a general meeting of the National Assembly National Defense Committee on Nov. 26, Defense Minister Kim Kwan-jin said the ministry plans to “discuss extending KADIZ [to Ieo Island] with the relevant agencies.” He also responded to Saenuri Party (NFP) lawmaker Chung Hee-soo’s demand to include Ieo Island as part of KADIZ by saying that it was “already under [South Korea’s] effective control” and that there was “no great significance” in Japan claiming the airspace as part of its own air defense zone. South Korean and Japan have already held more than ten discussions on Ieo Island’s inclusion in KADIZ without any conclusion being reached. Kim Jang-soo, head of the Blue House’s national security office, also commented on China’s declaration while attending a meeting of the National Assembly Steering Committee. When questioned on it by Democratic Party lawmaker Baek Kun-ki, Kim replied that the declaration “does not impact our management, use, or exploration of Ieo Island because it is located within our zone of operations.” “We administer Ieo Island, and it has one of our naval science bases on it,” Kim added. He went on to say that “the notions of territory or territorial sea do not apply. It’s a reef. Our basic approach to the drawing of naval boundaries is to work the matter out between us and China.” Ieo Island has traditionally been viewed as an area under South Korean jurisdiction. Ieodo Ocean Research Station was built there in 2003, and patrol flights have taken place twice weekly. But the airspace was not included in KADIZ as set by the US military in 1951. In 1969, Japan declared it as part of its own air defense zone. Last week on Nov. 23, China did the same. [ADIZ] [Territorial disputes]
• The history of air defense identification zones in Northeast Asia
  Posted on : Nov.27,2013 16:31 KSTnModified on : Nov.27,2013 17:21 KST The line is a remnant of the Cold War, drawn by the US in 1951 By Gil Yun-hyung, Tokyo correspondent South Korea, Japan, and Taiwan were the countries most directly influenced by the Chinese Defense Ministry’s Nov. 23 announcement of its air defense identification zone in the East China Sea. So why was it the US that responded most keenly to it? The simple reason is that it was the US that drew the boundaries in the first place, part of an attempt to put itself at the center of a new international order in the Asia-Pacific region during the Cold War. China’s declaration is significant as the first real challenge to this order, which has prevailed in the region for close to seven decades. [ADIZ] [Territorial disputes]
• China's move to establish air defense zone appears to backfire
  By Simon Denyer, Thursday, November 28, 7:01 AM BEIJING — It was designed as a forceful response to Japanese assertiveness. But Beijing’s creation of an air defense zone may have backfired, experts said, eliciting a strong joint response from the United States and Japan. Instead of strengthening China’s position, the “air defense identification zone” has unsettled and united its neighbors. It provided Washington with a perfect opportunity to reassure its Asian allies that it remains committed to maintaining stability in the Asia-Pacific region. On Saturday, the Communist Party government said any non­commercial aircraft entering a broad zone over the East China Sea should first identify itself and warned that failure to do so could provoke “defensive emergency measures” by China’s armed forces. The statement heightened an already tense standoff with Japan over several disputed islets in the area. But the United States called China’s bluff by sending two warplanes into the zone Tuesday, and Beijing’s response was muted. The Defense Ministry merely said it had identified and monitored the planes, while the Foreign Ministry stressed that the zone was purely defensive and offered to strengthen communications with other regional players to maintain peace and security. “We hope relevant countries do not make too much of a fuss about it, panic and read too much into it,” spokesman Qin Gang said. [ADIZ]
• China signs railway deals with Romania, Hungary, Serbia
  China.org.cn, November 26, 2013 China Monday signed railway agreements with Romania, Hungary and Serbia during Premier Li Keqiang's Central and Eastern European tour. Romania is planning to build a high-speed railway using Chinese technology. The move is part of the cooperation plans being signed in Bucharest, the Romanian capital, as Premier Li Keqiang visits the country. Working groups were to continue to discuss details of the pact on Monday along with other plans for infrastructure construction. "The value of the final deals will surely surprise us all," Li said. Romanian Prime Minister Victor Ponta said that if his country's high-speed rail project goes ahead smoothly it will become a showcase for other countries in Central and Eastern Europe and hopefully lead to more deals. Li said China reached an agreement with Hungary and Serbia to jointly build a railway between the latter two countries. [Railways]
• China claims airspace administered by South Korea and Japan
  Posted on : Nov.25,2013 15:46 KST Countries respond with regret and concern that China’s claim could jeopardize stability in East Asia By Seong Yeon-cheol, Beijing correspondent China announced on Nov. 23 it had set up an air defense identification zone (ADIZ) that encompasses not only Ieo Island, which is administered by South Korea, but also the Diaoyu Islands (called the Senkaku Islands in Japan). The Diaoyu Islands are the subject of an ongoing territorial dispute with Japan. The South Korean government expressed its regret about the Chinese government’s decision 24 hours after the announcement. Japan and the US on the other hand responded with immediate criticism, referring to the move as one that threatens the stability of East Asia. [Territorial disputes]
• U.S. flies two warplanes over East China Sea, ignoring new Chinese air defense zone
  By Craig Whitlock, Updated: Wednesday, November 27, 8:55 AM E-mail the writer The U.S. military has flown two warplanes over the East China Sea on a training exercise, the Pentagon announced Tuesday, blatantly ignoring a recent edict from China that it must be informed in advance of any such flights over the region. The two unarmed aircraft flew Monday evening, Eastern time, over a small island chain that China and Japan both claim as their territory, said Lt. Col. Tom Crosson, a Pentagon spokesman. He said the U.S. military did not provide any notice to Beijing and described the mission as “uneventful,” saying that there was “no contact, no reaction from China.” On Saturday, China issued an edict imposing an “air defense identification zone” over part of the East China Sea and the uninhabited islands, known as the Senkaku in Japan and Diaoyo in China. The Chinese Defense Ministry warned that any noncommercial aircraft entering the zone would need to submit flight plans in advance or else face the possibility of “defensive emergency measures.” [China confrontation] [Provocation]
• China: still ‘going west’?
  November 21st, 2013 Author: Tim Summers, Chatham House The dominant idea in China’s regional policy since the beginning of the 2000s has been to close the development gaps between coastal and inland China. Since around 2007, aggregate GDP and industrial growth rates in western and central China have pulled ahead of those on the coast, suggesting some modest shift westwards — though parts of coastal China clearly remain the most prosperous. This year has seen the completion of China’s leadership transition, as well as an apparent shift to a slower pace of economic growth amid renewed efforts to rebalance, or change the structure of China’s economy. What impact will these developments have on regional political economy? Is China still ‘going west’? [Regional policy]
• US should 'correct its mistakes' over China's air zone
  China.org.cn, November 25, 2013 China said Sunday it had "lodged representation" with U.S. ambassador to China over the American response to China's setup of East China Sea Air Defense Identification Zone. Foreign Ministry spokesman Qin Gang said that China's Assistant Foreign Minister Zheng Zeguang had lodged representation with Gary Locke, calling for Washington to correct its mistakes. Qin said the setup of the air zone complies with the Charter of the United Nations and international laws and practices.
• The Rebalance & America's Navy in the Asia-Pacific
  5 Questions for Rep. Randy Forbes (R-VA) By Dustin Walker Rep. Randy Forbes (left) speaks with Secretary of the Navy Ray Mabus (right) Yesterday, the House Armed Services Committee kicked off its new oversight initiative on the Asia-Pacific rebalance with a roundtable of ambassadors from Australia, Japan, Philippines, Republic of Korea, Singapore, and New Zealand. Rep. Randy Forbes (R-VA), chairman of the HASC Seapower subcommittee, is leading the initiative along with Rep. Colleen Hanabusa (D-HI). RealClearDefense interviewed Rep. Forbes about the new hearing series, the progress of the Asia-Pacific rebalance, the posture of the U.S. Navy in the region, and his hopes for a budget agreement to relieve sequestration. 1. What’s the most important thing you hope the new HASC hearing series will achieve? More broadly, how can Congress work to make the rebalance more effective? Thanks for the opportunity to answer your questions. And I want to add that it is great to see how RealClearDefense has grown over the last 6 months into a “first-stop” for the day’s best commentary on defense issues. Regarding the Asia-Pacific Oversight Series, I am excited to have been asked by Chairman McKeon to lead this Committee effort with my friend and colleague, Rep. Colleen Hanabusa. Colleen and I share a bipartisan appreciation for the growing importance of the Asia-Pacific region to U.S. economic, security, and diplomatic interests. We agree with the Administration that our Nation’s long-term interests are becoming increasingly tied to the shifting power dynamics in Asia, but we also know this policy will only be successful with strong congressional input and support. After a decade of intense focus on the Middle East, we are interested in finding constructive ways to realign the Congress’ oversight of critical policy issues like those we now face in the Asia-Pacific. This Series presents an opportunity to jump-start such an effort and allow us to begin to ask some of the question about our work on this topic that we need to address. What hearings or classified briefings should we be convening that have perhaps taken a backseat in the past several years? What meetings with foreign government or defense officials should we be taking? What legislation should our Committee be considering? And, most importantly from a HASC perspective, what resources will the Department of Defense require to uphold our now seven-decade-old strategy of fostering a stable balance of power in the Western Pacific Ocean that favors the interests of America and our allies and partners? [MISCOM] [China confrontation] [AirSea Battle]
• America Has No Military Strategy for China
  By Seth Cropsey Given the intense media focus on the woes of Obamacare’s rollout, it’s not surprising that no one paid much attention when Japan scrambled its fighters three days in a row beginning on October 24th in response to Chinese military aircraft’s incursions into Japan’s airspace as the so far bloodless maneuvering over claims to Japan’s Senkaku islands sharpens. A miscalculation that drew fire has the potential to enmesh us in a dispute that serves no one’s interest. An escalation of such a dispute would be disastrous. Yet the U.S. has no strategy for a conflict with China. The sole U.S. preparation for such an outcome is a set of ideas known as the AirSea Battle, (ASB). The ASB is a concept that has taken root in the U.S. Defense Department as the Obama administration talks about rebalancing forces from the Middle East to Asia, and as the American high command gradually accepts the possibility that China may be a strategic competitor to the U.S. The idea of ASB—a new approach to coordinating military services’ roles in combat, and not a strategy—comes in two parts: to preserve large American forces’ ability to bring power to bear by destroying an enemy’s command and control infrastructure; and to defeat the defenses that allow the launch of low-cost, proliferating, and increasingly accurate missiles. ASB means to accomplish this by new, almost revolutionary, cross-Service combinations of command, control, communications, computers, intelligence, surveillance and reconnaissance, that are reflected in equally coordinated operations. [China confrontation] [AirSea Battle] [Conflict]
• Islamist group claims responsibility for attack on China's Tiananmen Square
  Group releases eight-minute audio clip which warns of future attacks in Beijing Jonathan Kaiman in Beijing theguardian.com, Monday 25 November 2013 12.03 GMT A radical Islamist group has claimed responsibility for an attack on Tiananmen Square last month and warned of future attacks in the Chinese capital, according to an eight-minute audio clip obtained by a US-based internet monitoring organisation. The Turkistan Islamic Party (TIP) is the first group to claim responsibility for the attack on 28 October, when a four-wheel drive vehicle ploughed through a group of pedestrians near the iconic square in central Beijing, crashed into a stone bridge and caught fire, killing five people and injuring dozens. Chinese authorities quickly identified the driver as Uighur, a Muslim ethnic minority hailing from Xinjiang, a sparsely populated, restive region in the country's far north-west. [Terrorism] [Xinjiang]
• ROC concerned by Beijing's Diaoyutais move
  ROC concerned by Beijing's Diaoyutais moveThe Diaoyutai Islands remain an inalienable part of ROC territory despite their inclusion in mainland china’s new East China Sea air defense zone. (CNA) •Publication Date:11/25/2013 •Source: Taiwan Today The ROC government is highly concerned by the inclusion of the Diaoyutai Islands in mainland China’s new East China Sea air defense identification zone, according to the National Security Council Nov. 23. “We assert sovereignty over the Diaoyutai Islands and such a stance will not change despite mainland China’s announcement,” the NSC said in a statement. “The government is rock solid on safeguarding Diaoyutais sovereignty, protecting ROC fishermen’s rights and conducting related fisheries patrols.” [Diaoyu] [Straits]
• China sets air defense ID zone in E China Sea
  Xinhua, November 23, 2013 A Chinese map of the East China Sea Air Defense Identification Zone. The Ministry of National Defense of the People's Republic of China issued a statement on establishing the East China Sea Air Defense Identification Zone. Following is the full text: Statement by the Government of the People's Republic of China on Establishing the East China Sea Air Defense Identification Zone Issued by the Ministry of National Defense on November 23 The government of the People's Republic of China announces the establishment of the East China Sea Air Defense Identification Zone in accordance with the Law of the People's Republic of China on National Defense (March 14, 1997), the Law of the People's Republic of China on Civil Aviation (October 30, 1995) and the Basic Rules on Flight of the People's Republic of China (July 27, 2001). The zone includes the airspace within the area enclosed by China's outer limit of the territorial sea and the following six points: 33º11'N (North Latitude) and 121º47'E (East Longitude), 33º11'N and 125º00'E, 31º00'N and 128º20'E, 25º38'N and 125º00'E, 24º45'N and 123º00'E, 26º44'N and 120º58'E. [Territorial disputes]
• China's unmanned combat plane completes test flight
  By Chen Boyuan China.org.cn, November 22, 2013 The Sharp Sword conducts its first flight in a test-flight center in Southwest China at around 1 pm, fans said on cjdby.net, China's most popular military website, adding that the test lasted nearly 20 minutes.[Cjdby.net] China's first stealth unmanned combat aerial vehicle (UCAV) completed its test flight on Thursday, making China the fourth country, after the U.S., France and Britain, to possess this type of unmanned combat plane. The aircraft, named Lijian (Sword), took off on Thursday at 1:00 p.m. sharp, from an undisclosed test flight center in the southwest of the country, according to online military fans. It remained airborne for around 20 minutes before landing. The combat UAV was designed by AVIC Shenyang Aircraft Design and Research Institute and assembled by AVIC Hongdu Aviation Industry. Lijian's successful test flight has made China become the fourth country, after the United States (X-47B), France (Dassault nEUROn) and Britain (Taranis), to have independently developed a UCAV. [UCAV] [UAV]
• US envoy for DPRK: Progress made during China visit
  Xinhua, November 21, 2013 U.S. envoy for the Democratic People's Republic of Korea (DPRK) Glyn Davies said on Thursday that "good progress" was made at his meeting with China's special representative for Korean Peninsula affairs Wu Dawei. Davis made the remarks at the end of his three-day visit to China. "We made some good progress," Davies said, adding that his discussion with Wu was "constructive and tense."
• China seeking resumption of six party talks without preliminary steps by N. Korea
  Posted on : Nov.23,2013 14:43 KST US, S. Korea and Japan still insisting on Pyongyang’s preliminary action before talks can resume By Gil Yun-hyung, Tokyo correspondent, Park Hyun, Washington correspondent and Park Byong-su, staff reporter China’s proposal for resuming the six-party talks did not contain a request for North Korea to take preliminary action. Chinese diplomat Wu Dawei presented a seven-point compromise proposal to the talks’ member countries and suggested that the talks resume in the spring of 2014, Japan’s Yomiuri Shimbun reported on Nov. 22. Wu Dawei, China's special representative for North Korea policy, is China’s envoy to the talks as well as the president of the talks. But since the proposal does not contain the “credible preliminary measures” that the US has demanded as a precondition for resuming the talks, it appears to have failed to gain American approval. [Six Party Talks] [Preconditions]
• Israel Increasingly Courting China as an Ally
  By DAN LEVIN Petar Kujundzic/Reuters Israeli Prime Minister Benjamin Netanyahu reviews honor guards during a welcoming ceremony last May in Beijing. As an Israeli diplomat, Dore Gold has sat down with his country’s prime ministers, United States presidents and Palestinian negotiators, all in search of that elusive solution to the Middle East conflict. But the shifting tides of geopolitical power brought Mr. Gold to China this month, where he found himself hosting a Sabbath dinner with guests not traditionally invited to this Jewish gathering: Chinese officials. That Mr. Gold, a former Israeli ambassador to the United Nations, was in Beijing explaining the Hebrew prayer for wine and the need for defensible borders to Chinese military brass reflects a growing desire by Jerusalem to bring a rising China over to Israel’s side of the negotiating table on Iran and the Palestinians. While not an official visit, as Mr. Gold now serves as president of the Jerusalem Center for Public Affairs, a think tank, he has the ear of Prime Minister Benjamin Netanyahu. He was joined in Beijing by retired Gen. Uzi Dayan, a former deputy chief of staff for the Israel Defense Forces and a former national security adviser. Together they spent several days meeting with Chinese military officers, becoming the first Israelis to speak at the Academy of Military Science of the Chinese People’s Liberation Army. [Israel]
• Chinese nuclear forces, 2013
  Hans M. Kristensen Robert S. Norris Abstract The number of weapons in China’s nuclear arsenal is slowly growing, and the capability of those weapons is also increasing. The authors estimate that China has approximately 250 warheads in its stockpile for delivery by nearly 150 land-based ballistic missiles, aircraft, and an emerging submarine fleet. China is assigning a growing portion of its warheads to long-range missiles. The authors estimate that China’s arsenal includes as many as 60 long-range missiles that can reach some portion of the United States. The US intelligence community predicts that by the mid-2020s, China could have more than 100 missiles capable of threatening the United States. [Military balance]
• China Stages Night Landing Drill Near N.Korea
  China staged a live-firing landing exercise with about 5,000 Army, Navy, and Air Force troops in Bohai Bay near North Korea on Sunday night, the official Chinanews website reported Monday. Photos showed tanks from a landing ship running on the beach, self-propelled guns firing shells, soldiers loading a landing boat and flares exploding above a fleet of ships. The website said the exercise focused on reconnaissance, warning, maritime transport, firepower, and landing. Chinese soldiers fire shells during a night landing drill in Bohai Bay on Sunday (top); Chinese soldiers load a landing boat onto a warship during a night landing drill in Bohai Bay on Sunday. /Chinanews.com Chinese soldiers fire shells during a night landing drill in Bohai Bay on Sunday (top); Chinese soldiers load a landing boat onto a warship during a night landing drill in Bohai Bay on Sunday. /Chinanews.com The live shell firing exercise continues until Wednesday, the website added, and ships are banned from the area for the duration. It is rare for China to stage a military exercise under North Korea's nose and make it public immediately. A diplomatic source in Beijing speculated that the drill aims to prepare for any serious instability in the North. Others guess that it was a show of force aimed chiefly at Japan in the conflict over the Diaoyu or Senkaku Islands in the East China Sea. [Media]
• PLA staging large night-landing drills in Bohai, Yellow Sea
  PUBLISHED : Tuesday, 19 November, 2013, 5:09am This week's live-fire amphibious drills by the PLA involve more than 5,000 troops. Photo: CNS The People's Liberation Army has launched a large-scale night-landing military exercise in the Bohai Sea and the northern part of the Yellow Sea, state media reported. It was the first military exercise conducted by the PLA since the conclusion of the third plenum of the Communist Party's Central Committee a week ago in Beijing. Several photos of the exercise released by state media yesterday showed the joint landing drills by the army, navy and air force at night under live fire. "Nearly 20 combat units - more than 5000 troops - took part in the exercise, which focused on joint reconnaissance, maritime transport, information and live fire attacks, assault landings and other military exercises," the official news service said.
  The PLA drill follows large military manoeuvres conducted by Japan. From November 1 until yesterday, 34,000 army, navy and air force troops from the Japan Self-Defence Forces, accompanied by six naval ships and 350 aircraft, practiced amphibious landings on the uninhabited Okidaito atoll, 400 kilometres southeast of Okinawa.
• US ambassador to China resigns
  China.org.cn, November 20, 2013 Locke. [File photo] Wednesday he will step down from his role early next year for personal reasons. The U.S. ambassador to China, Gary Locke, whose term began in August 2011, said on Wednesday he will step down from his role early next year for personal reasons. Locke was the first American of Chinese descent to act as the U.S. ambassador to China. He also served as Secretary of Commerce between 2009 and 2011. In a statement released by the U.S. embassy, Locke said serving as the US Ambassador to China has been the honor of a lifetime. "When I met with President Obama earlier this month, I informed him of my decision to step down as ambassador in early 2014 to rejoin my family in Seattle," Locke said. "Our efforts have focused on job creation in America by increasing exports to China, opening more markets for American companies, and promoting Chinese investment in the U.S.," he said. "And we have advanced American values by meeting with religious leaders and human rights lawyers, and visiting Tibetan and Uighur ethnic minorities in Tibet and Xinjiang."
  Locke is married with three children. A declaration of assets made in March 2011 showed Locke to be the sixth-richest official in the US executive branch.
• Turk Industry Could Face US Sanctions in China Air Defense Deal
  Nov. 19, 2013 - 03:45AM | By BURAK EGE BEKDIL ANKARA — Scores of Turkish defense companies that would act as subcontractors on a $3.44 billion air defense contract with a Chinese company may face US sanctions because the Chinese company is on a US blacklist. A senior US diplomat in Ankara said serious consequences could await Turkish companies involved in the program to build Turkey’s first long-range air and anti-missile system if China Precision Machinery Import and Export Corp. (CPMIEC) wins the competition. “Turkish entities to be involved in this program in partnership with CPMIEC would be denied access to any use of US technology or equipment in relation to this program,” the diplomat said. “No US equipment would ever be sold or authorized to be used anywhere in the program.” A Feb. 5 public notice by the US State Department blacklists 13 companies for breach of the Iran, North Korea and Syria Nonproliferation Act, including CPMIEC. Turkey’s top body overseeing procurement announced Sept. 26 that it selected CPMIEC to build the country’s first long-range air defense architecture, sparking a major dispute over whether the Chinese-built system could be integrated with the NATO air defense assets stationed in Turkey. The Chinese contender defeated a US partnership of Raytheon and Lockheed Martin, offering the Patriot air defense system; Russia’s Rosoboronexport, marketing the S-300; and the Italian-French consortium Eurosam, maker of the SAMP/T Aster 30. In October, US ambassador to Ankara, Francis Ricciardone, said, “We are concerned about that [Chinese] company, and its role as a nuclear weapons technology proliferator in the world. This is not a NATO system. China is not a member of NATO.” [China confrontation] [China competition] [Arms sales] [Sanctions]
• Kim Jong-un Hopes to Visit China Early Next Year
  North Korean leader Kim Jong-un has expressed the hope to visit China before the Lunar New Year's Day on Jan. 31, the Duo Wei Chinese newspaper in the U.S. reported Friday. The Chinese-language daily quoted a political source in Beijing as saying Kim may declare his willingness to abandon the nuclear program and return to six-party talks if he goes to China. Beijing has not decided whether to accept Kim's request.
• China ready to help Philippines
  Xinhua, November 17, 2013 China is ready to send rescue and medical teams to the disaster-stricken areas in the Philippines hit by Super Typhoon Haiyan, Foreign Ministry spokesman Hong Lei said on Saturday. Hong said China has been paying high attention to the disaster situation in the Philippines, and has expressed for several times that it is considering providing humanitarian aid to the disaster areas. Taking into consideration the actual demands of the typhoon-hit areas, the Chinese government is willing to send medical team there, Hong said. The Blue Sky Rescue Team affiliated to the Red Cross Society of China and other non-governmental rescue teams also expressed their willingness to join disaster relief in the Philippines, he said. China has maintained communication with the Philippines on the issue of medical assistance, and Chinese rescuers will set off for the disaster-hit areas immediately once conditions permit, Hong said.
• Facing up to change in China
  November 12th, 2013 Author: Dwight H. Perkins, Harvard University There is wide recognition that the policies and institutions that have served China well over the past three decades require radical change and reform if China is to sustain progress to high-income status. The slower growth rate of the past year and the likelihood of even slower but still substantial rates in the future is not itself a major problem. Middle-income countries, for a variety of reasons, cannot sustain GDP growth rates of 9–10 per cent per year decade after decade, even if they do ‘everything right’. Doing ‘everything right’ in the Chinese case, however, is going to be a particular challenge. Fundamental changes in many of the institutions governing the Chinese economy and society are likely to be required. This short essay will briefly describe some of these needed changes and then focus on one of the most difficult: the interrelated challenges of eliminating excessive regulation at all levels of the economy, strengthening and fundamentally reforming the legal system, and greatly reducing the corruption and rent-seeking that now undermines the productivity of the economy and threatens the stability of the political system.
• China–DPRK economic engagement: don’t blame the sunshine
  November 13th, 2013 Author: James Reilly, University of Sydney The substantial expansion of China’s trade and investment in North Korea, echoing in some aspects the sunshine policy championed by South Korean presidents Kim Dae-jung and Roh Moo-hyun, is slowly nudging the reclusive state toward a more market-oriented and externally engaged society. Dancers perform during an 'Arrirang Festival mass games display' in Pyongyang on 26 July 26, 2013. (Photo: AAP) Since 2005, Chinese leaders have created an array of financial and political incentives to encourage Chinese companies to invest in and trade with North Korea, encapsulated by the phrase ‘government guidance with companies in the lead; market-based operations and mutual benefit’. Trade levels rose from US$1.58 billion in 2005 to US$5.6 billion in 2011, representing nearly 70 per cent of all North Korea’s foreign trade. China’s direct investment stock in North Korea now exceeds US$300 million. [China NK] [Sterile]
• China to ease one-child policy
  Xinhua, November 15, 2013 China will loosen its decades-long one-child population policy, allowing couples to have two children if one of them is an only child, it was announced on Friday. China will loosen its decades-long one-child population policy, allowing couples to have two children if one of them is an only child, according to a key decision issued on Friday by the Communist Party of China (CPC). China will implement this new policy while adhering to the basic state policy of family planning, according to the decision on major issues concerning comprehensively deepening reforms, which was approved at the Third Plenary Session of the 18th CPC Central Committee held from Nov. 9 to 12 in Beijing. The birth policy will be adjusted and improved step by step to promote "long-term balanced development of the population in China," it said.
• China's non-financial investment in US grows fast
  China Daily, November 16, 2013 China's non-financial investment in the United Sates grew fast in the first three quarters, marking a year-on-year increase of 251.1 percent, said a Chinese commerce official on Friday. During the period, non-financial investment by Chinese investors in the United States totaled $3.08 billion, said Vice Minister of Commerce Wang Chao at an investment forum. The aggregated non-financial investment in the United States stood at $14.33 billion by the end of September, said Wang. Chinese companies are investing in more diversified sectors, ranging from energy, manufacturing to food and services, he said. Wang said China encourages investment in the United States and expects the US government to grant the national treatment to all Chinese companies and remove unnecessary legal barriers. [ODI] [F&E]
• China Expected to Be the Top Market for Industrial Robots by 2016
  By Christina Larson November 15, 2013 Being a Chinese factory boss is harder than it used to be. Rising labor costs, alongside an increasingly unfavorable exchange rate for China’s renminbi and still slack demand from Europe, are pinching manufacturers in China’s southern export hubs. In Zhejiang province, average assembly-line wages nearly tripled from 2005 to 2012, from $2,425 to $6,750 per year. Hard times call for inventive measures. On Thursday, a source at the Zhejiang Economic and Information Commission told the state-run China Daily newspaper that the local government will pilot a novel solution: investing $82 billion over five years to help local factories partially automate production processes. And Zhejiang officials aren’t alone in their thinking. China is already the world’s fastest-growing market for industrial robots, according to the International Federation of Robotics, an industry group based in Germany. Robot sales to mainland China have increased 25 percent, on average, every year from 2005 to 2012, reaching 23,000 robots last year. Only Japan purchases more robots than China annually. The IFR predicts China will be the top market by 2016. [China rising]
• Report of one-child policy change dismissed
  China.org.cn, November 15, 2013 The National Health and Family Planning Commission has denied a report that China would be relaxing its family planning policy soon to allow couples with just one spouse from a one-child family to have a second child. The commission said no new documents mandating such a change had been issued and there was no timetable for the issue of such a policy. But it also said the central government was discussing the issue. Caixin.com had reported that the new policy was expected to be announced after the Third Plenum of the 18th CPC Central Committee, which concluded on Tuesday. The commission has announced that a nationwide follow-up survey on family development is expected to be launched in China starting in 2014. The survey will track an average of 1,000 households across 30 provinces in order to better understand the country's population and family structure. China's family planning policy was first introduced in the late 1970s to rein in the surging population by limiting most urban couples to one child and most rural couples to two children, if the first child born was a girl. The policy was later relaxed, with the current policy stipulating that to have a second child, both parents must be only children.
• Reuters Concern-Trolls China Over Philippine Typhoon Relief
  Reuters’ concern-trolling over the low-key Chinese response to the Philippine Haiyan supertyphoon disaster is revealing, in a relatively inadvertent way. Yesterday it was China's Meager Aid to the Philippines Could Dent Its Image Today it is No Sign of Help for Philippines from China’s Hospital Ship The Chinese government has not been particularly forthcoming in aid to the Philippines, especially in comparison with the high profile pledges by the United States and Japan, and the dispatch of the US aircraft carrier George Washington and its strike group to provide relief. There’s a dearth of hard data on exactly why the PRC hasn’t gone all out in opening the aid floodgates to the Philippines, with whom China is locked in an antagonistic maritime dispute. China’s activist hardliner newspaper, Global Times, did weigh in with one editorial urging the government not to snub the Philippines; for the rest, Reuters has been forced to rely on the usual suspects—pundits, Twitterers, and Weibo posts—in order to weave a narrative out of the fact that China has provided less aid than the United States and Japan. The story could have been as easily spun as “US, Japan Go All Out to Exploit Supertyphoon to Bolster Strategic Alliance With the Philippines,” which, indeed, is a certain part of what’s going on. Japan, in particular, is eager to use the disaster to strengthen the case for expanding the regional footprint of its Self-Defense Force (in anticipation of the day when the pacifist constitution is revised and the SDF is rebranded as a conventional—and rather large—national military). [Aid weapon] [Japanese remilitarisation] [Domestic]
• China: The Next Phase of Reform
  Analysis November 12, 2013 | 1033 ? Print ? Text Size ? The commitment and ability of China's leaders to follow through on new policies and to meet rising expectations will be tested as they strive to balance competing social, economic, political and security challenges. Three decades ago, China embarked on a new path, creating a framework that encouraged the country's rapid economic rise. The successes of those policies have transformed China, and the country's leadership now faces another set of strategic choices to address China's new economic and international position. The much-anticipated Third Plenary Session of the 18th Communist Party of China Central Committee concluded Nov. 12 after four days of closed-door deliberations among top political elites. The full document containing the policy proposals will not be released for days or even a week, but the initial information suggests China's leaders are seeking more significant changes in their policies to try to stay ahead of the challenges the country faces. [Economic reform] [Agency]
• China's first war photographers
  China.org.cn, November 14, 2013 During China's Second Sino-Japanese War (1937-1945) and War of Liberation (1946-1949), more than 300 press photographers devoted themselves to capturing the campaigns on camera; one third of these 300 heroes got wounded or killed. At the time of China's annual Reporters' Day (Nov. 8), China.org.cn has selected for you masterpieces by three Chinese veteran press photographers -- Yuan Kezhong, Yuan Ling and Shi Panqi -- through whose lenses we can grasp drastic moments in history.
• Why Is China Giving the Philippines the Cold Shoulder?
  Embroiled in a nasty legal fight over the South China Sea, Beijing is putting Manila on notice -- even in the midst of tragedy. BY DAVID BOSCO | NOVEMBER 13, 2013 In the wake of the devastating Typhoon Haiyan, international aid is flowing to the Philippines. The United Nations released $25 million from an emergency fund and the United States pledged $20 million in immediate relief. But, for the moment at least, precious little assistance is coming from the region's behemoth. The Chinese authorities announced a paltry $100,000 in humanitarian aid (along with another $100,000 via the Red Cross Society of China). Beijing's cold shoulder fits with a broader diplomatic isolation of Manila, which China has shepherded. In recent months, China's foreign minister has met with all 10 counterparts from the Association of Southeast Asian Nation (ASEAN) member-states -- except the Philippines. A key point of friction has been the Philippines' willingness to challenge Beijing's maritime claims. The most dangerous flashpoint came in the spring of 2012, when vessels from the Philippines and China engaged in a weeks-long standoff over waters near the Scarborough Shoal, a rocky formation little more than 100 miles from the Philippines' Subic Bay, the once (and perhaps future) home of a U.S. Navy base. The incident began when Filipino sailors boarded a Chinese vessel fishing in what the Philippines considers its own maritime economic zone. After an unnerving naval escalation, the confrontation ended a few months later with China in effective control of the disputed waters.
• China's Philippine aid controversy
  By Lucy Williamson BBC News, Beijing China has said it is sending $1.6m (£1m) to the Philippines to help with the aid effort following Typhoon Haiyan. Beijing had been criticised for its initial pledge of $100,000 - a fraction of that committed by other major nations. The offering from the world's second-largest economy, which came with another $100,000 from the Chinese Red Cross, prompted cries of protest from analysts and media in the West. The Reuters news agency called it "relatively paltry"; Time Magazine described it as "measly" and "insulting". True, China's initial donation paled beside the $20m given by the United States or the $10m pledged by Japan - or even the $2m donated by Indonesia. But for all the global criticism, it didn't attract much attention at home. Most Beijing residents questioned about it said they hadn't heard about it and of those that had, only one thought the amount too small. "It doesn't matter how much the donation is," one woman said, "it's the thought that counts." Aid at a glance Asian Development Bank: $500m (£312m) emergency loans and $23m in grants Australia: A$30m ($28m, £17m) package, including aircraft, medical staff, shelter materials, water containers and hygiene kits China: 10m yuan ($1.6m; £1m) in relief goods plus $200,000 (£120,000) from government and Red Cross European Commission: $11m (£6.8m) Indonesia: Logistical aid including aircraft, food, generators and medicine Japan: $10m (£6.2m), including tents and blankets. Pledged up to 1,000 soldiers, 25-person medical team already sent South Korea: $5m (£3.1m) plus a 40-strong medical team UAE: $10m (£6.2m) in humanitarian aid UK: $32m (£20m) aid package, sending aircraft carrier, destroyer and large transport aircraft US: $20m (£12.4m) in humanitarian aid, 300 military personnel, aircraft carrier and other ships, military aircraft plus logistics support "It's not too little," another man told me, "because we'll probably help with the reconstruction as well later on." [Aid weapon]
• Trilateral relations between China, US, and Japan and the prospects for dialogue (Part II)
  by Yang Wenjing, ??:??? 14 November 2013 / 14?11? 2013 This is the second half of a two part Special Report from Professor Yang Wenjing of the China Institute for Contemporary International Relations in Beijing, China. The article has three major sections: 1) An overview of significant changes in the U.S.-China-Japan trilateral relationship since the Obama administration took office; 2) A basic description of extant U.S.-China-Japan trilateral dialogs and analysis of the pros and cons of those dialogs; 3) Prospects for future dialog and policy recommendations. [Chinese IR]
• Old Sea Dogs In New Battles With Fancy Labels
  by Peter Hayes September 6, 2012 Peter Hayes writes that the role of the Hawaii based CINCPAC, the commander-in-chief of the Pacific Command, ”originated in the competition between the Navy (Admiral Nimitz, central Pacific) and the Army (General MacArthur, western Pacific) in the prosecution of the war against Japan.” While today CINCPAC’s role has been greatly diminished, the newly formed AirSea Battle Office fills a similar function. Hayes concludes that “old sea dogs are sailing into new geostrategic and bureaucratic battles in the west Pacific with fancy labels on them–but nothing new in terms of a strategy that would engage China as an equal partner in a concert rather than a balance of powers.” [AirSea Battle] [China confrontation]
• Li Keqiang's report on the economic situation at the 16th National Congress of ACFTU
  China.org.cn, November 12, 2013 Editor's note: On October 21, Chinese Premier Li Keqiang delivered a report at the 16th National Congress of the All-China Federation of Trade Unions (ACFTU). In his report, Li expressed his concerns about China's economy and mid to long term trends. He spoke about China's macro-economy, based on his research and analysis, using simple language and anecdotes. The full text of the report is as follows: Comrades, first of all, on behalf of the Central Committee of the Communist Party of China (CPC) and the State Council, I would like to offer congratulations on the opening of the 16th National Congress of the All-China Federation of Trade Unions (ACFTU), in which the new leaders were elected. I offer my regards to the millions of employees and the officials working in the trade unions and my highest respect to the workers of China, who are the major force behind China's development. At the request of the conference, I would like to take this opportunity today to talk about three major issues, as you are all very concerned about China's economic situation.
• Chinese and US troops in Hawaii for joint drill
  By Wu Jin China.org.cn, November 13, 2013 Chinese and U.S. troops initiated a joint humanitarian aid and disaster relief exercise in Hawaii on Tuesday, November 12. The three-day joint drill, which marks the first time for China to send its troops to U.S. territory, focuses on providing emergency aid in a third country presumably hit by a devastating earthquake. Chinese and U.S. troops initiated a joint humanitarian aid and disaster relief exercise in Hawaii on Tuesday, November 12. [Xinhua] According to China's Ministry of National Defense, the drill -- incorporating the three major subjects of weapon demonstration, technique exchange and cooperative action -- covers fundamental missions such as retrieving survivors, navigating through narrow passages and providing medical aid at high-altitudes. Samuel Locklear, commander of the U.S. Pacific Command, said the U.S. hoped to enhance its cooperation with China through the joint drill. According to him, humanitarian aid and disaster relief are common interests, shared by all Asian Pacific countries. The joint exercise can benefit the mutual understanding and trust between both countries. [F&E]
• New Chinese Submarine-Launched Missile Can Reach U.S.
  China is set to deploy by the end of this year a submarine-launched ballistic missile capable of reaching the continental U.S., Defense News reported Monday. The news comes from a draft report by the U.S.-China Economic and Security Commission. The submarine-launched missile is called JL-2 and could be deployed aboard an 8,000-ton Type 094 nuclear submarine. It has a range of 8,000 km that puts the entire U.S. mainland in reach if fired from the Pacific Ocean. [Military balance]
• China's meager aid to the Philippines could dent its image
  By Megha Rajagopalan BEIJING Tue Nov 12, 2013 7:50am EST (Reuters) - China may have wasted the chance to build goodwill in Southeast Asia with its relatively paltry donation to the Philippines in the wake of a devastating typhoon, especially with the United States sending an aircraft carrier and Japan ramping up aid. The world's second-largest economy is a growing investor in Southeast Asia, where it is vying with the United States and Japan for influence. But China's assertiveness in pressing its claim to the disputed South China Sea has strained ties with several regional countries, most notably the Philippines. China's government has promised $100,000 in aid to Manila, along with another $100,000 through the Chinese Red Cross - far less than pledged by other economic heavyweights. [Aid] [Softpower] [Aid weapon]
• Trilateral relations between China, US, and Japan and the prospects for dialogue (Part I)
  Introduction This is the first part of a two part Special Report from Professor Yang Wenjing of the China Institute for Contemporary International Relations in Beijing, China. The article has three major sections: 1) An overview of significant changes in the U.S.-China-Japan trilateral relationship since the Obama administration took office; 2) A basic description of extant U.S.-China-Japan trilateral dialogs and analysis of the pros and cons of those dialogs; 3) Prospects for future dialog and policy recommendations. In this Policy Forum, Yang Wenjing explains that there have been new changes in trilateral relations between China, the U.S. and Japan since the Obama administration took office: The US-Japan alliance finally achieved a substantial improvement after several twists and turns; U.S.-China relations are moving from “competitive cooperation” toward the direction of a “new type great power relationship” because of great efforts from both sides; China-Japan relations suffered a downturn due to the U.S. strengthening its military cooperation with Japan and exacerbating the Diaoyu Islands situation. The state of trilateral relations between the U.S., China and Japan shows an “unbalanced” (evocative of the “rebalance”) relationship; U.S-China and U.S.-Japan relations are close while China and Japan are estranged. Nevertheless, in light of the three countries’ close-knit economic interests and high degree of interdependence, none of the parties can bear the cost of all out conflict; it is especially important to prevent the antithesis to security from forming if the U.S. and Japan are on the same side in opposition to China. This tripartite coordination and active dialog provides rationale and motivation to do so. Yang Wenjing is an associate research professor in the American Studies Department at the China Institute for Contemporary International Relations. The views expressed in this report do not necessarily reflect the official policy or position of the Nautilus Institute. Readers should note that Nautilus seeks a diversity of views and opinions on significant topics in order to identify common ground. [Chinese IR]
• Philippine Typhoon Showcases US Strategic Edge Over China
  By Sydney J. Freedberg Jr. on November 11, 2013 at 11:38 AM US Marines board aircraft bound for the Philippines to help with disaster relief after Typhoon Haiyan. US Marines board aircraft bound for the Philippines to help with disaster relief after Typhoon Haiyan. UPDATE: Aircraft carrier USS George Washington underway to disaster zone. It is more than a little ghoulish to look at a tragedy that may have killed 10,000 people and see a strategic opportunity. But that’s how strategists have to think. After all, what is war itself but human tragedy exploited for strategic advantage? And that’s how we need to think about what’s happening in the aftermath of Typhoon Haiyan, where US Marines are already on the ground. [Updated: The Pentagon announced at 5:40 today that the aircraft carrier USS George Washington and its escorts have received orders to "to make best speed" for the Philippines and "should be on station within 48-72 hours." Marine Corps Forces Pacific said earlier that the US has so far deployed 215 military personnel to Filipino territory.] The US military is already helping the storm-ravaged Philippines, a long-time ally. The Chinese military not only isn’t responding, it can’t respond — not with anything like the speed or scale that the US can achieve thanks to our global fleet of airborne tankers, cargo planes (like the KC-130Js pictured above), large-capacity naval vessels, friendly seaports such as Singapore, and Pacific land bases. What’s more, the Philippine government probably wouldn’t want help from the Chinese even if they could get there. Those facts represent a major US advantage not only in this one incident in the Philippines but in the long-term struggle for influence across the Western Pacific. [Softpower] [US military]
• Man sentenced to 7 years for exporting sophisticated US military electronics to China
  By Jasper Craven, Globe Correspondent A Chinese man will serve seven years in prison for illegally exporting tens of millions of dollars of sophisticated US military electronics from his Waltham company to China, federal law enforcement officials said. Zhen Zhou Wu was re-sentenced Monday after exporting the electronics components to China on 12 separate occasions between 2004 and 2007, the FBI and US attorney’s office in Boston said in a statement. The US Court of Appeals for the First Circuit affirmed 15 of Wu’s 17 convictions in March after he appealed his 2010 conviction. The First Circuit vacated two of the counts against Wu because it held the jury instructions were constitutionally inadequate. Because two counts were removed from the sentencing, the First District modified Wu’s sentence to 84 months from 97 months. Wu’s company, Chitron Electronics Inc. in Waltham, was a front company for Chitron Electronics Limited, headquartered in China. Wu’s customers included Chinese military research institutes and “military entities responsible for procuring, developing, and manufacturing electronic components for China’s army, navy, and air force,” the statement said. [Export controls] [China confrontation]
• Why China is making a big play to control Africa's media
  GEOFFREY YORK NAIROBI — The Globe and Mail Published Wednesday, Sep. 11 2013, 10:14 PM EDT Last updated Thursday, Sep. 12 2013, 10:37 AM EDT When one of South Africa’s biggest newspaper chains was sold last month, an odd name was buried in the list of new owners: China International Television Corp. A major stake in a South African newspaper group might seem an unusual acquisition for Chinese state television, but it was no mystery to anyone who has watched the rapid expansion of China’s media empire across Africa. From newspapers and magazines to satellite television and radio stations, China is investing heavily in African media. It’s part of a long-term campaign to bolster Beijing’s “soft power” – not just through diplomacy, but also through foreign aid, business links, scholarships, training programs, academic institutes and the media. Its investments have allowed China to promote its own media agenda in Africa, using a formula of upbeat business and cultural stories and a deferential pro-government tone, while ignoring human-rights issues and the backlash against China’s own growing power. [Softpower] [[Media] [Africa] [China rising]
• China: Goodbye, GDP
  By He Shan China.org.cn, November 10, 2013 China's new leadership is poised to tolerate slower growth as it tries to shake off its long-term GDP mania and put social progress and environmental welfare at the top of the nation's agenda. [File Photo] Under the existing "GDP growth is the king" performance evaluation plan, local government leaders have strong incentives to push investment, without any regard for the quality of peoples' lives or environmental capacity. An encouraging message from China's leadership was President Xi's call for putting an end to the performance evaluation system based on GDP growth during a recent field trip to Hunan Province. His remarks came just before China's leaders attend the Third Plenary Session of the 18th CPC Central Committee from November 9 to 12, a meeting that will address the deepening of China's reforms for the next decade.
• 5000 Pretexts for War
  My working assumption about international affairs is that people in mortal peril are careful and clever. On the other hand, people with plenty of money, power, and impunity are often arrogant and sloppy. This outlook colors my perspective on various US dustups with adversarial nations, most recently Syria. That’s why I’m unwilling to rule out the possibility of a false flag chemical weapons attack. Assad might be stupid enough to order an attack with the UN inspectors in Damascus; but as more details emerge concerning Saudi Arabia’s determination to bring down the Syrian regime pronto, the circumstantial case for Prince Bandar organizing the atrocity is strengthened. [Pretext] [Conflict] [False flag]
• Time for China to innovate
  By Zhang Rui China.org.cn, November 11, 2013 Experimental Advanced Superconducting Tokamak, also known as "artificial sun", has been designed by the Institute of Plasma Physics at the Chinese Academy of Sciences in Hefei, central China. Just like the real sun, the "artificial sun" can generate electricity and help to solve the present global energy crisis. [Photo: tech.sina.com.cn] On Oct. 1, China's National Day, the country's top leadership met for a group study at a Beijing technology hub at the Zhongguancun Science Park, known as China's Silicon Valley. During the session, Chinese President Xi Jinping stressed the importance of science and technology in increasing strengthening China, saying that innovation is a global trend. "We must enhance awareness of unexpected challenges and grab the opportunity of the science and technology revolution. We cannot wait, hesitate or slacken our efforts," he said. China's development has reached a crossroads. Reform and innovation are vital for the country to continue to develop, whether such innovation is forced by need or comes about organically. [Innovation] [F&E]
• Taiwan’s ‘White Shirt Army,’ spurred by Facebook, takes on political parties
  (William Wan/ The Washington Post ) - Liulin Wei, left, a medical school graduate whose short post on a Taiwanese web portal sparked a movement now known as the “White Shirt Army,” meets with another follower in Taipei, Taiwan. [It might be noted that neither is wearing a white shirt] By William Wan TAIPEI, Taiwan — For decades this island has been bitterly divided into blue and green, the colors of its rival political parties. But that two-toned dichotomy has been upset in recent months by a sea of youths dressed in white. Now known as the “White Shirt Army,” the young people have become the biggest, most surprising social movement in Taiwan’s recent history. Some experts believe their emergence represents a shift in the political thinking and direction of the country. “We don’t support any side or leader,” said Liulin Wei, a lanky, soft-spoken 30-year-old who sparked the movement with a short online post four months ago. “We are for civil rights, common values, democracy. And we made it very simple to join. You just put on a white shirt.” The group’s emphasis on civil-society issues comes after decades in which Taiwanese politics have been dominated by the existential question of independence from mainland China. While China considers Taiwan a rebellious province to be reunified with the mainland, by force if necessary, Taiwan insists on its rights as a self-governed entity. [Taiwan]
• Beijing's proposal on 6-party talks snubbed
  By Chung Min-uck South Korea, the United States and Japan have reportedly rejected China’s proposal to restart the six-party talks with North Korea, reaffirming that Pyongyang needs to first take solid steps toward denuclearization. Cho Tae-yong, Seoul’s chief nuclear envoy, on Wednesday, held a trilateral session with his American and Japanese counterparts ? Glyn Davies and Junichi Ihara ? in Washington which was followed by a previous bilateral session between Cho and Davies. According to diplomatic sources, the three have concluded that the North must “first take persuasive steps of dropping its nuclear programs before holding the multilateral forum,” virtually objecting to a more advanced framework proposed earlier by Beijing. [Rebuff] [Preconditions]
• Off China's coast, U.S. carrier displays teeth behind the pivot
  By Greg Torode ABOARD THE USS GEORGE WASHINGTON, South China Sea Thu Nov 7, 2013 7:40am EST A U.S. Navy personnel works in the control room of the U.S. Navy aircraft carrier USS George Washington, during a tour of the ship in the South China Sea November 7, 2013. REUTERS-Tyrone Siu China's People's Liberation Army (PLA) personnel leave their hats during a tour of the U.S. Navy aircraft carrier George Washington in the South China Sea November 7, 2013. REUTERS-Tyrone Siu (Reuters) - While cuts in Pentagon budgets and political gridlock in Washington have cast doubt on the sustainability of a U.S. "pivot" back to Asia, its military realities are all too clear from the flight deck of the USS George Washington aircraft carrier. F-18 Super Hornet jet fighters roar from its decks with chest-thumping velocity less than 300 km (185 miles) from the Chinese coast - a symbol of U.S. naval dominance in Asia that Chinese analysts fear could contain Beijing's rising power for decades. Yet just 30 km (19 miles) away is a lone Chinese naval frigate, well within the protective screen of U.S. ships and aircraft that protect the carrier across a vast swathe of the disputed South China Sea. The officers of the Washington are hosting People's Liberation Army officers on-board as part of efforts to engage a Chinese military wary of being contained by U.S. forces across Asia. The frigate has not been invited. [China confrontation] [Military balance] [Seapower]
• Commerce Trumps Security?
  The pressure is on to sell to China’s military. Nov 18, 2013, Vol. 19, No. 10 • By JOSEPH A. BOSCO Next month’s meeting of the U.S.-China Joint Commission on Commerce and Trade in China will feature a familiar ritual. American negotiators will face intensified pressure for Washington to lift restrictions on the sale of military and dual-use technology to China. Over time, the perennial drip-drip of Beijing’s complaints against U.S. trade discrimination in this area, bolstered by American business desires to close the trade gap, has proved effective. Despite growing recognition that the security threat from China is real and increasing, the U.S. government is lowering its guard by facilitating the sale of technology that can enhance Chinese military capabilities—beyond what China has already stolen through conventional and cyber espionage. China’s increasingly assertive behavior in the East and South China Seas has raised concerns among its neighbors that its rise might not be as peaceful as Beijing has claimed. Southeast Asian countries openly describe it as aggressive. When Xi Jinping took over China’s helm from the unpopular Hu Jintao this year, many in the West expressed the cautious hope that he would begin reforming the political system and moderating China’s foreign policy [F&E] [Export controls]
• RAND Suggests Using Land-based ASMs Against China
  Nov. 7, 2013 - 08:46PM | By WENDELL MINNICK | Comments TAIPEI — A new RAND report suggests the US military consider turning China’s anti-access/area-denial (A2/AD) strategy on its head by incorporating a “far blockade” strategy using land-based anti-ship missiles (ASM) at chokepoints in the Asia-Pacific region. The new report, “Employing Land-Based Anti-Ship Missiles in the Western Pacific,” looks at how the US military, in a joint or coalition effort using an integrated network of land-based ASMs, could shut down China’s naval movements. With massive Pentagon budget cuts coming, land-based ASMs would be “inexpensive joint force multipliers.” The report provides detailed geospatial depictions of how this strategy could paralyze China’s navy. The release of the report coincides with Japan’s announcement that it is conducting an exercise that places Type-88 surface-to-ship missiles on Miyako Island. It is the first time Japan has conducted such an exercise. The strait between Okinawa and Miyako is a common access route to the Pacific by the Chinese navy. [China confrontation] [Alliance] [Bases]
• White House to respond to Jimmy Kimmel controversy
  By Liu Qiang China.org.cn, November 8, 2013 A petition on the White House website reached the 100,000 signature threshold, and the White House is obliged to respond to the controversy. [file photo] A petition on the White House website calling for an investigation of the "Kids Table" segment of the Jimmy Kimmel Show has reached the 100,000 signature threshold, meaning the White House is obliged to respond to the controversy. The White House website requires that a petition must obtain 100,000 signatures within 30 days to receive a response. The petition reached the threshold 12 days before the deadline. On Oct. 16, a boy on the "Kids Table" segment of the Jimmy Kimmel Show, when asked how to pay back the 1.3 trillion in U.S. debt owed to China, responded that the U.S should "kill all the people in China." The clip was aired by ABC and the "kill everyone in China" comment led to anger and protests by Chinese Americans. Two days after the show aired, a White House petition was launched, calling for "a sincere apology" and for the program to be cut. The petition reads: " They had a choice not to air this racist program, which promotes racial hatred. The program is totally unacceptable and it must be cut. A sincere apology must be issued." The show even attracted attention on China’s social media sites such as Sina Weibo, China’s version of Twitter, and Renren.com, China’s version of Facebook. The social media sites were inundated with calls for apologies and political voices from Chinese-Americans. Both ABC and Kimmel himself have already apologized for the clip, and the video has been cut from future broadcasts. A statement from ABC read, "We offer our sincere apology...our objective is to entertain." But the apology has been criticized for lacking sincerity. Around 10,000 Chinese Americans are expected to protest in 20 cities across America this Saturday. [China bashing]
• ‘Peaceful rise’ will meet US containment
  Global Times | 2013-11-6 22:58:01 By Global Times John Mearsheimer (Mearsheimer), professor of political science at the University of Chicago, is best known in China for his book The Tragedy of Great Power Politics (2001), in which he predicts, based on his pessimistic view of the anarchic world order, that China's rise will inevitably be "unpeaceful." Has anything changed this position? What will China's efforts at "peaceful rise" bring to the Asia-Pacific region? Global Times (GT) reporter Chen Chenchen interviewed Mearsheimer exclusively during his recent trip to Beijing. GT: Tragedy will be issued in a new edition next April. And the China section will be revised. Is there any change in your long-held conclusion that China will not rise peacefully? Mearsheimer: I have completely rewritten the conclusion, so it deals only with the question of whether China can rise peacefully. So I now have a lengthy concluding chapter that makes my argument. The basic argument will not change at all. I think it is the most comprehensive statement of my views on the subject. I only dealt with the subject partially in the original conclusion. But in the new conclusion I deal exclusively and comprehensively with the question of whether China can rise peacefully. GT: Is there anything about China's rise that you still feel uncertain about or want to rethink? Mearsheimer: No. I am quite certain that China cannot rise peacefully. But my argument is based on my theory of international politics, and my theory, like all social science theories, is not always right. So there is some possibility that I will be proved wrong. And I always say let's hope that this is one of those cases where I am proved wrong, because I tell a depressing story. In keeping with the title of my book I tell a tragic story. I hope that I am proved wrong. But I believe I'm sad to say that I will not be proved wrong. [China confrontation] [China rising] [Conflict] [Peaceful rise]
• Cooking the Books: The Federal Bureau of Narcotics, the China Lobby and Cold War Propaganda, 1950-1962
  Jonathan Marshall1 As influential contributors to national policy, intelligence professionals inevitably face strong political and bureaucratic pressures to shape their assessments to fit official or factional policy. In the modern era, such pressures have contributed to costly, even disastrous, escalations of the Vietnam War, the arms race, and, most notoriously, Washington’s conflict with Saddam Hussein’s Iraq.2 Intelligence on the international narcotics menace has been particularly subject to such pressures ever since U.S. leaders vowed to wage “war” on the illicit drug trade more than a half century ago.3 In recent years, influential interest groups and policy makers have leveled epithets like “narco-terrorism” and “narco-communism” against targets such as Cuba, Nicaragua, Iran, Panama, Syria, the Taliban, and Venezuela to justify harsh policies ranging from economic sanctions to armed invasion, while ignoring or downplaying evidence implicating U.S. allies (the Nicaraguan Contras, the Afghan mujahedeen and Karzai administration, the Colombian military, and so forth).4 Given the stakes, critical scrutiny of such claims, and rigorous attention to de-politicizing intelligence on international narcotics matters, may be as vital to preventing foreign policy disasters as is ensuring sound intelligence on more traditional matters of national security. To shed historical light on the dangers of turning international drug enforcement into a political weapon, this paper re-examines a classic case of alleged manipulation of narcotics intelligence: the vilification of Communist China by U.S. Commissioner of Narcotics Harry J. Anslinger at the height of the Cold War. His inflammatory rhetoric denouncing the People’s Republic of China (PRC) as an evil purveyor of narcotics went largely unchallenged in the Western media during the 1950s and early 1960s, when Anslinger acted as America’s leading drug enforcement official and its official representative to the United Nations Commission on Narcotic Drugs (CND). As we shall see, his charges strongly reinforced Washington’s case for diplomatic isolation of China, including its exclusion from the United Nations. [China confrontation] [drugs][Disinformation] [Propaganda] [Parallels]
• Siew urges cross-strait economic coordination
  Siew urges cross-strait economic coordination Former ROC Vice President Vincent C. Siew calls for Taipei and Beijing to get on the same economic strategic development and policymaking page during an address at the 2013 cross-strait business leaders’ forum Nov. 4 in Nanjing, mainland China. (CNA) •Publication Date:11/05/2013 •Source: Taiwan Today It is imperative Taiwan negotiates more free trade agreements and expands participation in regional economic integration so Taipei and Beijing can cement mutual trust and promote greater interaction, former ROC Vice President Vincent C. Siew said Nov. 4. “Taiwan and mainland China are both under pressure to upgrade their industries,” Siew said. “While Taipei and Beijing have concluded 19 agreements, there remain great challenges in initiating further cooperation.” Siew, a veteran civil servant with extensive economic experience, made the remarks during the opening ceremony of a cross-strait business leaders’ summit in Nanjing, mainland China. [Straits]
• China navy chief says operational aircraft carrier a few years away
  By David Alexander WASHINGTON | Thu Sep 12, 2013 5:32pm EDT (Reuters) - The Chinese navy is using its first aircraft carrier, the Liaoning, for training and testing and will decide on an operational carrier for the fleet after a few years of evaluation, Admiral Wu Shengli said on Thursday. The navy chief of the People's Liberation Army, on a military-to-military visit with his U.S. counterpart, told reporters at the Washington Navy Yard that Chinese sailors would carry out "very heavy" training over the next two or three years as they assess the carrier. "After the training and experimentation we will have a final evaluation on the development of the aircraft carrier for the PLA navy," said Shengli, whose delegation included the commander of the Liaoning and the first pilot to land on its flight deck. [Seapower]
• Chinese high-speed trains venture overseas
  Xinhua, November 3, 2013 On a state visit to Thailand in early October, Li pushed China's willingness to participate in the project, stressing that "railway cooperation can become a new highlight in China-Thailand cooperation". [Photo/Xinhua] Parallel to the development of domestic high-speed rail, the Chinese government and rail enterprises are actively seeking customers overseas. In a meeting with a trade ministers from the Association of South East Asian Nations (ASEAN) last week, Premier Li Keqiang thanked them for traveling by high-speed train from south China to Beijing, calling it a real "roadshow" for Chinese high-speed trains. Thailand, an ASEAN member, plans a high-speed rail network in the next seven years to satisfy its business and tourism demands. On a state visit to Thailand in early October, Li pushed China's willingness to participate in the project, stressing that "railway cooperation can become a new highlight in China-Thailand cooperation". An exhibition of Chinese high-speed rail also kicked off in Bangkok during his visit. Not only Thailand, countries including the United States, Russia, Malaysia, Singapore, Brazil and Turkey are mooting their own high-speed rail projects. The Australian government has completed a feasibility study into a proposed high-speed rail route along its east coast. With the world's longest operational line for bullet trains that run at more than 200 km per hour, China wants to take part in projects overseas. [Railways]
• Beijing to strengthen security after Tian'anmen terror attack
  Xinhua, November 3, 2013 Beijing's Party chief Guo Jinlong has called for enhanced capacity to prevent the Chinese capital from terrorist attacks after a car crash in Tian'anmen Square killed five people and injured another 40. During a two-day inspection tour lasted from November 1 to 2, Guo urged police and security forces to "look for vulnerable links" and "learn a lesson" from the Tian'anmen terrorist attack, the Beijing Daily reported Sunday. Guo, a member of the Political Bureau of the Communist Party of China Central Committee, stressed the importance of quick response to emergencies and asked police and security forces to raise their awareness in countering terrorism and violence. [Xinjiang] [Terrorism]
• PLA insiders: US dreads China-Turkey missile trade
  By Zhang Lulu China.org.cn, October 31, 2013 Two insiders of the People's Liberation Army's (PLA) Air Force on Oct. 25 told China's newspaper China Youth Daily how the U.S. dreads a China-Turkey missile trade. Turkey awarded a contract to China's FD-2000 missile defense system last month. [File photo] Zhang Wenchang and Sun Yali of the PLA's Air Force elaborated on three aspects that both the U.S. and NATO fear, in regards to the possible missile trade between China and Turkey, after Turkey announced its decision to award a contract for the creation of a missile defense system to a Chinese firm last month. [Arms sales] [China rising] [Missile defense]
• Uighur leader questions China's account of Tiananmen attack
  Uighur leader Rebiya Kadeer delivers a speech in front of a East Turkestan flag at the fourth General Assembly of the World Uighur Congress (WUC) in Tokyo May 14, 2012. REUTERS/Yuriko Nakao By Paul Eckert WASHINGTON | Wed Oct 30, 2013 8:12pm EDT (Reuters) - The exiled leader of China's Uighur ethnic minority community called on Wednesday for an international investigation into an incident in which a car ploughed into pedestrians in Beijing, after Chinese authorities arrested five suspected Uighurs over the attack. The SUV vehicle burst into flames after being driven into a crowd on Tiananmen Square on Monday. The three occupants and two bystanders were killed, while dozens were injured. Police said it was a terrorist attack. Rebiya Kadeer, president of the Munich-based World Uighur Congress, called the attack tragic but was equivocal on whether Uighurs - a Muslim people from China's far western region of Xinjiang - had carried it out. Kadeer, who lives in the Washington area, warned against accepting at face value China's account of the incident. [Xinjiang] [Terrorism] [Spin] [Double standards]

• China suspects Tiananmen crash a suicide attack- sources
  By Benjamin Kang Lim and Ben Blanchard BEIJING | Tue Oct 29, 2013 8:20am EDT (Reuters) - Chinese authorities investigating what could be Beijing's first major suicide attack were searching for two men from Muslim-dominated Xinjiang on Tuesday after three people suspected to be from the restive region drove a SUV into a crowd at Tiananmen Square and set it on fire. They killed themselves and two tourists on Monday in the square, the heart of China's power structure and the focal point of the mass 1989 pro-democracy demonstrations brutally crushed the military. Police have spread a dragnet across the capital, checking hotels and vehicles, seeking two people suspected to be ethnic Uighurs, a Muslim minority from Xinjiang in China's far west, on the borders of ex-Soviet Central Asia. [Separatism] [Xinjiang] [Terrorism]
• China Showcases Nuclear Submarine Fleet
  By Zachary Keck October 29, 2013 China’s state-run media touted the growing power of the PLA Navy’s nuclear submarine force in a series of articles that ran over the weekend. The article, which ran in a number of state-run publications, noted that China’s elite submarine units have taken a low profile to date, but suggested that they now would be more prominently featured in public relations media campaigns. “After more than 40 years of development, now is the time for us to show the world our determination and ability to safeguard peace and tell our people about this ‘mysterious' force,” Rear Admiral Li Yanming, the political commissar at a nuclear submarine base was quoted as saying. Other PLAN sailors quoted in the article suggested that China’s submarine force was capable of dealing with rival forces in the region. Rear Admiral Gao Feng, the commander of one of the PLAN’s submarine bases was quoted as saying: “I think the claims of some on the Internet that we are backward and can't defeat other nations' navies are biased. Although our boats are not as advanced as our rivals', we have the ‘spirit of victory', and our tactics are good enough to enable us to compete with them.”
• China holding up shipment of Iranian petroleum to North Korea
  By KOICHIRO ISHIDA/ Correspondent DALIAN, China--China is holding petroleum that was heading to North Korea from Iran in an apparent attempt by Beijing to maintain its control over Pyongyang, sources said. According to Chinese sources, the petroleum was part of North Korea’s contract to import about 500,000 tons of condensate, a light oil, from Iran. North Korea, seeking to diversify its energy sources, started discussions on the deal last year. The agreement was reached with the cooperation of a major Chinese state-run petroleum company. The condensate is believed to have been shipped from Iran over a number of occasions on tankers registered to a third nation. But Chinese authorities ordered the tankers to stop when they reached the Chinese coast in the Yellow Sea this spring. [China NK]
• Aquino says Manila wrong about ‘concrete blocks’ in Scarborough Shoal
  23 October, 2013 - South China Morning Post President forced to admit that Manila was wrong about Chinese building project as ‘concrete’ in disputed zone is ‘very old’ Manila has been forced into an embarrassing climbdown over accusations that China was building concrete blocks in a disputed shoal that has been a major source of tension between the two countries. Philippine President Benigno Aquino said yesterday the “blocks” on Scarborough Shoal, a group of rocks China calls Huangyan Island 120 nautical miles off the coast of Luzon, were “very old” and “not a new phenomenon”. Last month, Philippine Defence Secretary Voltaire Gazmin told lawmakers China had violated a non-binding code by preparing to build structures on the shoal, showing lawmakers surveillance photos of the “blocks”. China denied the accusation and accused Manila of deliberately stirring up trouble over disputed waters in South China Sea. Manila’s climbdown came as Philippine officials said a Filipino-British company had begun talks with China’s state-owned offshore oil producer for an oil- and gas-exploration deal at Reed Bank. The bank is in another part of the South China Sea where Philippine and Chinese vessels were involved in a confrontation 2½ years ago. If a deal is struck, it would be the first between China and the Philippines involving territory in the sea that both countries claim. [South China Sea]
• Erickson and Strange: Pragmatic Partners, the Unsung Story of U.S.-China Anti-Piracy Coordination
  by Guest Blogger for Elizabeth C. Economy October 24, 2013 This guest post is by Andrew Erickson, an associate professor in the Strategic Research Department at the U.S. Naval War College, and Austin Strange, a researcher for the College’s China Maritime Studies Institute. Out of the limelight, Gulf of Aden cooperation has provided both China and the United States with a vital conduit for progressive military contact amid protracted mistrust in the Asia Pacific. Indeed, their navies recently conducted a joint anti-piracy exercise there. In the future, Far Seas non-traditional security cooperation is set to play an even larger role in buttressing Sino-American military relations. U.S.-China maritime engagement, particularly in China’s nautical periphery, remains rife with mistrust, overlapping interests, and uncertainty. Strong official statements and emotionally charged saber rattling characterize much of the discourse in this region. In August 2012, for example, PLAN Rear Admiral and frequent CCTV commentator Zhang Zhaozhong declared that the United States would “run like rabbits” in the event of Sino-Japanese conflict over East China Sea territorial disputes. Indeed, the two maritime powers are arguably primarily competitors, as opposed to partners, in the contested Near Seas. [F&E]
• ROC reaffirms sovereignty over Diaoyutais
  ROC reaffirms sovereignty over DiaoyutaisThe Diaoyutai Islands are an inalienable part of ROC territory and claims to the contrary are without merit. (CNA) •Publication Date:10/25/2013 •Source: Taiwan Today The Diaoyutai Islands are an integral part of ROC territory and attempts to claim otherwise using publicity campaigns or alternative means are futile, according to the Ministry of Foreign Affairs Oct. 24. “It is indisputable that the Diaoyutais, from the perspective of geography, geology, history, international law and practical use, are an inalienable part of ROC territory,” the MOFA said. The MOFA remarks are in response to a video containing statements about the Diaoyutais uploaded to YouTube by the Japanese Ministry of Foreign Affairs. [Diaoyu]
• China and North Korea: New Thinking, Old Policies
  October 30, 2013 Richard Weitz By Richard Weitz With a tougher posture on recent provocations, have China’s policies on North Korea really changed? With the current provocation pause on the Korean peninsular, the extent to which China’s policies towards North Korea have changed due to the leadership turnovers in Beijing and Pyongyang and the DPRK’s provocative behavior is now clearer. In essence, PRC policymakers now employ sharper rhetoric and tactics with Pyongyang, even though China’s goal and strategy for resolving its North Korean problem remains largely unchanged. Beijing still prefers to see a divided Korean Peninsula and seeks a change in the DPRK’s behavior rather than a change in the regime itself. Moreover, it is hard to see what near-term developments could occur that might fundamentally change Beijing’s approach. Chinese policymakers find themselves in an undesirable position. Since late 2008, Beijing has sought to revive the Six-Party Talks on Korean denuclearization, but the DPRK has refused to meet the conditions set by the United States and South Korea for their resumption. Many Chinese now realize that North Korea is a strategic liability for Beijing’s goals in Asia and perhaps beyond. Not only can Pyongyang’s provocations precipitate a ruinous war on the Korean Peninsula, but they are driving the United States and its allies to increase their military capabilities in the region, which China sees as threatening. Yet, Beijing refuses to wage a major campaign of pressure to coerce Pyongyang into making concessions for fear of ending up with a worse outcome than the present stalemate. [China NK]
• Chinese police say Tiananmen Square crash was ‘premeditated, violent, terrorist attack’
  By William Wan, Updated: Thursday, October 31, 5:16 AM E-mail the writer BEIJING — Chinese authorities declared Wednesday that the fiery vehicle crash in Tiananmen Square this week was a deliberate terrorist attack and said five men have been arrested for allegedly helping to plan it. In a statement posted online by the Beijing Municipal Public Security Bureau, Beijing police called the crash that killed five people and injured 40 a “rigorously planned, organized, premeditated, violent terrorist attack.” Ten hours after the incident — in which an SUV drove through a crowd in the iconic square, then crashed and burst into flames — police arrested the five suspects in a night raid, Beijing police said in a statement on the department’s microblog account that was also distributed by the state-run Xinhua News Agency. The suspects’ names suggest that they are Uighur ethnic minorities from China’s troubled Xinjiang region, a prospect that could heighten already violent tensions between Uighurs and the Chinese government and trigger ever stricter police controls in that part of the country. The license plate of the crashed SUV was from Xinjiang, police said. Inside the vehicle, police found gasoline, a gasoline container, two long knives, an iron rod and a flag inscribed with extremist religious text. Police identified the SUV driver as Usman Hasan and the two passengers as his wife, Gulkiz Gini, and his mother, Kuwanhan Reyim. All three died in the incident. According to Wednesday’s police statement, Hasan deliberately veered off Chang’an Avenue, Beijing’s main thoroughfare, jumped the Jinshui Bridge, a famous tourist spot in front of the Forbidden City, and crashed into a guardrail. He, his wife and his mother-in-law then deliberately ignited the gasoline container inside the vehicle and died in the flames, police said. Two pedestrian tourists were also killed, identified by authorities as a woman from the Philippines and a man from China’s Guangdong province. [separatism] [Xinjiang] [Terrorism]
• Ma restates stance on cross-strait political issues
  •Publication Date:10/23/2013 •Source: Taiwan Today ROC President Ma Ying-jeou said Oct. 22 that the government is not avoiding the politically sensitive issue of establishing cross-strait representative offices and related negotiations are continuing. “The function of these offices is connected with services and day-to-day activities, rather than diplomacy or consular affairs,” Ma said. “This lessens the political nature of such talks.” Ma’s comments came while addressing Taiwan’s delegation to the Cross-Straits Economic, Trade and Culture Forum at the Presidential Office in Taipei City. According to the president, the representative office is politically neutral and progress must be made in negotiations. “Otherwise, subsequent talks on higher-level political might be affected,” he said. [Straits]
• Lifting the Veil on China’s “Carrier-Killer”
  By Harry Kazianis October 23, 2013 The good folks at the Jamestown Foundation here in Washington D.C. have produced what is clearly the world’s authoritative guide detailing the strategic rationale, development, and ramifications concerning a piece of Chinese military hardware Diplomat readers know all too well: The DF-21D, or the “carrier-killer” as it is known in the popular press. Authored by what I would consider the world’s leading expert on the subject (the DF-21D is the world’s first anti-ship ballistic missile or ASBM) and the first to recognize its importance in modern warfare, Dr. Andrew Erickson has developed a one of a kind assessment tracing the missiles’ origins, development, possible uses in combat conditions, as well as its overall implications for the U.S. Navy. Simply stated: the report is a must-read for China hands interested in Asia-Pacific security matters. A brief description of the weapon itself clearly demonstrates why there is so much hype surrounding it: the missile is mobile and fired from a truck-mounted launcher, making its detection more of a challenge. Most accounts have the weapon receiving guidance from over-the-horizon radar, satellites and other pieces of intelligence gathering technology. Many reports have the missile hitting its target, most likely a military vessel like an aircraft carrier, at a speed many times faster than sound (some say Mach 10 – 12). Scholars debate if present U.S. missile defenses can shield carriers against the weapon, especially if sea-based AEGIS naval platforms were also pressed to defend against sea and land-based cruise missiles simultaneously in numbers that could overwhelm the amount of interceptors available. Over the last several years, as Erickson and others have noted, the missile has gone from development, to likely tests of its components, to what U.S. Navy Admiral Willard dubbed reaching initial operational capacity via comments made in late 2010. Taiwan’s defense establishment also reported in 2011 that small batches of the missile have been “produced and deployed.” Just this year, various news outlets declared the missile was deployed across the Taiwan strait. Yet despite these reports, many analysts doubt such a weapon could be deployed in the near term. As Erickson explains in his report: “The real surprise is how much “ASBM denial” there has been outside active governmental circles. Some individuals, including a few respected professionals with the highest levels of Cold War experience, assumed that any Chinese ASBM would have many of the shortcomings of failed Soviet Industrial-age design but would nevertheless be susceptible to U.S. Information-age ballistic missile defense systems. Other skeptics stated that a conventional ASBM was technologically unfeasible; still more said that there was no evidence that China could achieve such a capability. Physics, however, allows for an ASBM; physics is the same for the Chinese as it is for everyone else. China has many physics experts and engineers who have served their country. We are witnessing the results today as well as the ability of China’s once-moribund defense industry to integrate existing technologies in innovative ways.” [China confrontation] [Asymmetry] [Military balance] [A2/AD]
• Cooperation between Taiwan, Shanghai FTZ proposed
  China.org.cn, October 28, 2013 Wu Po-hsiung, honorary chairman of the Kuomintang (KMT), addresses the closing ceremony of the ninth Cross-Strait Economic, Trade and Culture Forum in Nanning, capital of south China's Guangxi Zhuang Autonomous Region, Oct. 27, 2013. (Xinhua Wu Po-hsiung, honorary chairman of the Kuomintang (KMT), addresses the closing ceremony of the ninth Cross-Strait Economic, Trade and Culture Forum in Nanning, capital of south China's Guangxi Zhuang Autonomous Region, Oct. 27, 2013. [Xinhua] The cooperation between Taiwan and the newly built Shanghai Free Trade Zone (FTZ) would be promoted, according to a joint proposal adopted by the Chinese mainland and Taiwan at the Ninth Cross-Strait Economic, Trade and Culture Forum. The two sides altogether adopted 19 joint proposals. The Kuomintang (KMT) Party's vice chairman John Chiang announced the proposal which states that comprehensive cooperation should be conducted between a pilot free economic area in Taiwan and the Shanghai FTZ as well as another three pilot economic areas in eastern China's provinces of Fujian and Jiangsu. [Straits]
• Even in China, Dissidents Sometimes Get Fired Just for Being Bad at Their Jobs
  When Xia Yeliang was dismissed from his job teaching economics at Beijing University, Western critics claimed his outspoken liberal beliefs were the reason. But the people Xia taught tell a different story. Eric Fish Oct 22 2013, 12:04 PM ET Beijing University, pictured here, dismissed professor Xia Yeliang last week. Though the university says Xia's poor performance justified his firing, Xia believes he is being punished for his outspoken political beliefs. (Wikimedia Commons) When outspoken economics professor Xia Yeliang was dismissed from his post at Peking University last week after a panel of his colleagues voted to oust him, the move was seen as punishment for his politics and an attempt to cull liberal voices in Chinese universities. Summarizing the popular reaction, the New York Times published an op-ed yesterday that claimed that “The dismissal of Professor Xia is part of a wide crackdown on scholars, lawyers and writers who have discussed democracy and freedom.” At first glance, this explanation seems justified. Xia has frequently criticized the Chinese government—both in and out of the classroom—and has even tried to organize political gatherings. He was a signatory to the “Charter 08” pro-democracy petition (a document that landed its author, the Nobel Peace Prize winner Liu Xiaobo, an 11-year prison sentence) and last year he called for intellectuals across the country to gather in public squares to debate political reform. However, Xia's dismissal may have had more to do with his performance in his classroom. Some of Xia’s former students cited poor teaching and overzealous preaching, rather than liberal values, as major problems. [Media] [China bashing]
• Report: Chinese Censorship Expanding Abroad
  Chinese censorship, far from a merely domestic concern, is increasingly spilling over the country’s borders. That’s the takeaway from a new study from the Center for International Media Assistance (pdf) that traces the Chinese government’s influence on Western media within and outside of China, as well as Chinese-language media and other outlets in Southeast Asia, Africa and Latin America. “With more than half of China’s population now accessing the Internet and some political content going viral despite domestic censors’ efforts, the CCP’s (Chinese Communist Party) nervousness of overseas news trickling in has increased,” wrote Sarah Cook, author of the study and an analyst for Freedom House. [Media] [Inversion] [China confrontation]
• Communist Party’s Media Restrictions Affect News Outlets Around the World
  By Sarah Cook October 22, 2013 A Report to the Center for International Media Assistance The Center for International Media Assistance (CIMA), at the National Endowment for Democracy, works to strengthen the support, raise the visibility, and improve the effectiveness of independent media development throughout the world. The Center provides information, builds networks, conducts research, and highlights the indispensable role independent media play in the creation and development of sustainable democracies. An important aspect of CIMA’s work is to research ways to attract additional U.S. private sector interest in and support for international media development. CIMA convenes working groups, discussions, and panels on a variety of topics in the field of media development and assistance. The center also issues reports and recommendations based on working group discussions and other investigations. These reports aim to provide policymakers, as well as donors and practitioners, with ideas for bolstering the effectiveness of media assistance. [Media] [Inversion] [Think tank] [Shill]
• Economist urges end to urban-rural dualism in China
  By Chen Boyuan China.org.cn, October 21, 2013 "Experts on China's urbanization have argued the factual urbanization rate in China is less than 40 percent," said Li Yining on Thursday in Beijing. [Photo / Chen Boyuan / China.org.cn] A celebrated Chinese economist has underscored the need for China to adopt a unique pattern in its urbanization effort, much owning to the country's current urban-rural dualism that was implemented in the late 1950's. Li Yining, Honorary Dean of Guanghua School of Management at Peking University, said on Thursday in Beijing that the urban-rural dual household registration (hukou) system formed the stumbling block in China's urbanization process. Data from China's National Bureau of Statistics (NBS) show how urbanization in China exceeded 50 percent in 2011, a figure first in history, with more people living in the cities. Nevertheless, Li questioned the NBS calculations, saying the official statistics should not have included urban-dwelling migrant workers who do not possess an urban household registration. The NBS reportedly has regarded those who have lived in cities for more than six months as part of the "urban residential population," and listed them under urbanization achievement, irrespective of their hukou conditions. The underlying reason, he explained, is that urban and rural household registrations differ remarkably in terms of people's welfare and benefits, including their rights to equal education, medical care and job opportunities. "Experts on China's urbanization have argued the factual urbanization rate in China is less than 40 percent," Li said. He also pointed out that temporary urban-dwelling migrant workers usually reside in the cities as second-class citizens. Worse still, their children often stand to suffer the same fate. Li maintained that he, along with a handful of scholars, still do not agree to have an overnight eradication of China's dual household registration system due to the severe chaos a sudden influx of rural population to the cities would cause, while city-dwellers would rush to purchase villagers' houses, similarly disrupting the rural order. [Urbanisation]
• Fallacies about the US military presence in the Middle East
  By Jin Liangxiang China.org.cn, October 21, 2013 As China's oil imports approach U.S. levels, the voices in Washington blaming China for not playing a responsible role in the Middle East are also gaining momentum. A recent article in The Wall Street Journal on Oct. 11 titled "Middle East Oil Fuels Fresh China-U.S. Tensions" argues that "Beijing depends on the U.S. military to secure Middle East imports." Experts in major U.S. think tanks also frequently ask "what does China do in the Middle East?" By this, they mean that China has done very little for the region. The two discourses share the same logic that China has been a major importer of Middle East oil, just behind the U.S, and will soon surpass the U.S, but that China is dependent on the U.S. for regional and maritime security. These arguments ostensibly sound reasonable, but is this really the case? The following questions and facts need to be addressed. Firstly, does the U.S. military presence in the Middle East really serve to maintain security and stability? The U.S. might really believe that its military forces have played a positive role in maintaining stability in the region, and many people in other parts of the world also believe that without the U.S. troops, the Middle East would be more chaotic. But there are also challenges to this point of view. [F&E]
• China Holds Up Iranian Oil Shipment to N.Korea
  The Chinese government is holding up crude oil shipments North Korea has imported from Iran, the Asahi Shimbun reported on Sunday. According to the Japanese daily, the North's oil imports from Iran are being held up at China's Dalian and Qingdao ports. Pyongyang last year signed a contract with Tehran to import about 500,000 tons of crude oil. It was shipped to China in spring this year by tankers flying the flag of a third country, where it was to be refined and shipped to the North. But Beijing is still sitting on the shipment. "It is unclear what legal basis China is using for holding up the shipments because condensate and other petroleum products needed for daily living are not banned under UN economic sanctions imposed against North Korea," the paper said. The North receives most of its oil supply from China and was apparently hoping to reduce its dependence on its huge neighbor by signing the contract with Iran. Sources speculated that China may be holding up the shipment to "maintain its control over Pyongyang," the paper said.
• China issues white paper on Tibet
  China.org.cn, October 22, 2013 The Chinese government on Tuesday issued a white paper on west China's Tibet Autonomous Region, detailing its comprehensive development and rapid progress over the past 60-plus years. "The development and progress in modern Tibet results from the innate logic of its social and historical environment, and has its roots in China's progress in a larger context," says the white paper, released by the Information Office of the State Council under the title "Development and Progress of Tibet." Describing the region prior to the 1950s "as dark and backward as medieval Europe," the white paper notes in the foreword that Tibet was a society of feudal serfdom under theocratic rule, a society characterized by a combination of political and religious powers. According to the white paper, after a series of key historical stages including peaceful liberation, democratic reform, the establishment of the autonomous region and the reform and opening-up drive, the Tibetan people have gained freedom, equality and dignity, and are fully enjoying the fruits of modern civilization. With six chapters, the white paper elaborates Tibet's development over the past six decades in the fields of economy, people's livelihoods, political systems, cultural preservation, religious freedom and environmental protection, among others. Figures from the white paper show that the per capita net income of farmers and herdsmen in Tibet had maintained double-digit growth for 10 consecutive years, reaching 5,719 yuan (944 U.S. dollars) in 2012. The per capita disposable income of urban dwellers in the region was 18,028 yuan. Also, the gross regional product of the area rocketed from 129 million yuan in 1951 to 70.1 billion last year, marking an annual growth of 8.5 percent on average. From 1952 to 2012, the central government appropriated 454.34 billion yuan to Tibet as financial subsidies, taking up 96 percent of the accumulated fiscal expenditures of the local government since it was founded. [Tibet]
• MAC poll finds majority back cross-strait policy
  MAC poll finds majority back cross-strait policy The latest MAC poll shows that the majority of ROC citizens support expanded cross-strait exchanges. (Courtesy of MAC) •Publication Date:10/22/2013 •Source: Taiwan Today A total of 75.6 percent of ROC citizens support improved cross-strait relations and view them as helping expand Taiwan’s international participation, according to the results of a poll released Oct. 21 by the Mainland Affairs Council. In the survey, 85.1 percent of respondents back the idea of Taipei and Beijing taking part in the same international organizations and activities under the principle of equality and dignity. A total of 79.1 percent believe both sides participating in the international arena will help strengthen stability and peaceful development across the Taiwan Strait. [Straits] [Public opinion]
• Chinese Military Engaged in Political Warfare Against the United States
  Report shows use of semi-secret front groups, influence operations aimed at ‘disintegrating enemies’ BY: Bill Gertz October 22, 2013 4:59 am China’s military is using covert political warfare operations to influence U.S. policies and opinions toward Beijing while working to defeat perceived enemies like the United States and Taiwan, according to a report on the sub-rosa activities. The activities of the People’s Liberation Army (PLA) General Political Department (GPD) include funding pro-China activities abroad, recruiting intelligence sources, spreading propaganda, engaging in media activities, funding front groups that promote Chinese strategy and goals and supporting perceived “friends” of China. The report is the first public study of Chinese military political warfare and was produced by the Project 2049 Institute, an Arlington, Va. think tank focused on bringing democracy to China and other Asian countries by 2049. [China confrontation] [Think tank]
• De-Americanization! Bonfire of the Straw Men
  [This is a modified version of a piece that appeared at Asia Times Online on October 18, 2013. It can be reposted if China Matters is credited and a link provided.] Per my personal transcript of the October 17 NPR Marketplace, the popular, liberal-leaning US radio business show, an exchange between anchor David Brancaccio and Shanghai correspondent Rob Schmitz took as its point of departure the temerity of a Chinese rating agency, Dagong, in downgrading US debt: Lead in: ... While it doesn’t have the stature of Moody’s or Fitch, a credit ratings agency in China has downgraded the US even with President Obama’s signature on the budget deal last night ... DB: [in a tone of polite disbelief]: So this Chinese credit agency downgrades the United States despite the fact that there was the big deal in Washington? RS: It’s a vulnerable time right now for the US economy, and China and its rating agencies are in attack mode. Before the Dagong downgrade, we saw a pretty vicious attack on America‘s role in the world in an editorial written in Xinhua ... which declared an [airquotes] end to the age of Pax Americana [close airquotes]. DB: We saw in fact this full on pitch this week via Xinhua for making the Chinese currency the world’s reserve currency ... [Decline] [F&E] [Myopia] [Reserve]
• Huawei to challenge Samsung
  Chinese mobile titan denies spying, acquisition plans 2013-10-20 16:32 By Kim Yoo-chul Scott Sykes Vice president of Huawei Technologies A senior official of Huawei Technologies, the rising Chinese smartphone manufacturer, said the firm will increase investments for software to catch up with Samsung and LG. The official, however, said Huawei won’t follow the Samsung-style of cash-burning, aggressive marketing campaigns as it plans to focus on advertising and sponsorship from strategic partners for enhanced corporate awareness. He also noted the firm won’t pursue acquisition deals in the next few years in order to directly compete with Samsung while growing its corporate size. “Samsung Electronics is doing a great job. We are impressed at the rise of the Koreans. But it is unlikely major acquisition deals will be coming in the next few years as our strategy is to promote value-added flagship models,” said Scott Sykes, head of international media affairs, in a meeting with The Korea Times in Seoul, last week. The vice president declined to comment about its internal sales target next year. But Sykes said Huawei has been consistent in expanding business territories and boosting market shares over the last few years. “Samsung is yielding good returns in return for spending more for marketing. Huawei plans to increase spending on research and development. This is our top initiative,” said the executive. It is sourcing chips and LCDs from Samsung. Huawei, founded by a former Chinese military engineer in 1987, was ranked fifth in terms of brand recognition in a recent survey by Strategy Analytics (SA), a market research firm. [China competition] [Brand] [ICT]
• China Asked Korea Not to Sell Jets to Philippines
  China asked Korea not to sell FA-50 fighter jets to the Philippines, the Yomiuri Shimbun reported Saturday. The daily said Beijing made the request ahead of a summit in Seoul between President Park Geun-hye and Philippines President Benigno Aquino on Oct. 17. Korea declined, saying it cannot accept "interference" in arms exports, an issue of its national interest, according to the daily. In their meeting, Park thanked Aquino for Manila’s decision to buy the FA-50 jets and urged a speedy signing of the contract. A government official here said, "The Philippines is engaged in a territorial dispute with China over the Spratly Islands, and that appears to be why Beijing protested several times through the Chinese Embassy and other channels." [Arms sales]
• China and Iran: Destined to Clash?
  By Zachary Keck An expanding Chinese presence in the Middle East could pose the greatest long-term threat to Iran. Even as the U.S. considers Iran’s nuclear program as its most immediate threat, a consensus has emerged in the U.S. foreign policy establishment that China’s rise poses the biggest long-term strategic challenge to the country. There is little indication that a similar consensus has taken hold among Iranian elites. It will. Indeed, as Iran has been preoccupied with the U.S. and its allies over the past decade, China has quietly established a growing presence along all of Iran’s borders. In none of these places are Iran and China’s interests perfectly aligned. In some cases, particularly the Middle East, they are starkly at odds. Consequentially, should Iran avoid a conflict with the U.S. in the next few years, it’s likely to find China to be its most menacing threat in the future.
• How Much Is Yahoo Worth Without Alibaba? Not Much
  By Joshua Brustein October 16, 2013 Much has been made of Yahoo’s (YHOO) increasing sprawl, as it swallows startup after startup. Sure enough, in a Tuesday call with investors, Chief Executive Marissa Mayer said Yahoo had made eight new acquisitions in the last quarter alone. But what Yahoo’s latest financial numbers really highlighted was how much the company is running two completely separate businesses: It is simultaneously a consumer Internet company struggling to eke out a living from ad revenue and a large stockholder in Alibaba, the Chinese e-commerce darling that is twice as profitable as Facebook (FB). The latter part of the business is clearly pulling the former along. [Decline] [ICT] [China rising]
• China’s Real and Present Danger
  Now Is the Time for Washington to Worry By Avery Goldstein From our September/October 2013 Issue Chinese soldiers participating in a drill (Courtesy Reuters) Much of the debate about China’s rise in recent years has focused on the potential dangers China could pose as an eventual peer competitor to the United States bent on challenging the existing international order. But another issue is far more pressing. For at least the next decade, while China remains relatively weak compared to the United States, there is a real danger that Beijing and Washington will find themselves in a crisis that could quickly escalate to military conflict. Unlike a long-term great-power strategic rivalry that might or might not develop down the road, the danger of a crisis involving the two nuclear-armed countries is a tangible, near-term concern -- and the events of the past few years suggest the risk might be increasing. [Conflict] [F&E]
• Obama's absence at Asia-Pacific summits lets China dominate
  By Carol J. Williams October 10, 2013, 1:23 p.m. President Obama's decision to skip two Asia-Pacific summits this week to deal with the U.S. government shutdown and threatened debt default allowed Chinese leaders to strut the world stage as regional superpower envoys and have their way on critical issues. Maritime disputes in the East and South China seas have poisoned relations among half a dozen members of the Assn. of Southeast Asian Nations, or ASEAN, which met on the Indonesian island of Bali this week, then joined the U.S., Russia and other regional powers in Brunei for the annual East Asia Summit. [China confrontation] [Domestic] [Spin]
• Sino-Russian ties grow amid US pivot to Asia
  Mutual desire to offset Washington's influence has helped old foes Beijing and Moscow find common ground on numerous strategic issues . PUBLISHED : Friday, 11 October, 2013, 12:00am Minnie Chan minnie.chan@scmp.com When President Xi Jinping met his Russian counterpart Vladimir Putin at the Asia-Pacific Economic Co-operation (Apec) leaders meeting in Bali this week, both greeted each other like old friends. "This is the fifth meeting we had during the year and it is strong evidence of the high level and uniqueness of China-Russia relations," Xi was quoted by Xinhua as telling Putin. Just five weeks ago, Xi met Putin in St Petersburg at the G20 summit, during which China and Russia opposed a US proposal for military intervention in Syria after UN chemical weapons inspectors confirmed that hundreds of civilians were killed by the nerve gas sarin near the capital, Damascus, on August 21. Analysts said Beijing and Moscow were seeing eye to eye more than they have in decades as the two former foes found common ground in areas ranging from economic co-operation to international security to military technology transfers. [Russia China] [NCW]
• China condemns Dalai Lama of abusing child rights
  Xinhua, October 15, 2013 China accused the 14th Dalai Lama on Tuesday of tearing hundreds of Tibetan families apart and causing serious abuses of children's rights by orchestrating a Swiss campaign in the 1960s to adopt Tibetan orphans. The condemnation came after a Swiss newspaper Neue Zuercher Zeitung published a series of stories in September questioning the privately run campaign, masterminded by a Swiss entrepreneur and the Dalai Lama. The Dalai Lama had expressed a wish to turn the children into an elite for the "Tibetan government-in-exile". "The stories in the Swiss media have highlighted how the Dalai Lama and his clique fabricated so-called orphans and sent them to Switzerland," Foreign Ministry spokeswoman Hua Chunying said at a regular news briefing. Charles Aeschimann, director of an energy company, adopted Tibetan children after reading about the Tibetan refugees and the Dalai Lama's call to American and European families to take Tibetan child refugees into care and give them a Western education. "The Dalai Lama manufactured the orphan incident out of his Tibetan independence initiative, which caused hundreds of families to be torn apart, " Hua said. Of the some 200 children placed in Swiss families and the Pestalozzi children's village in Trogen, only 19 of them are true orphans. The others either have both father and mother or at least have one living parent, according to the Swiss reports. "The Dalai Lama's deeds have trampled on the children's individual rights and publicly violated common ethics and morality. All humane, justice-loving people should condemn such acts," Hua said.
• Frenemy China Calls For De-Americanized World
  Posted by Kevin G. Hall on October 14, 2013 In the latest sign that the U.S.-China relationship is one of true "frenemies," the state-run news agency Xinhua on Monday called for a "de-Americanized" world. The editorial on the English-language website of the Chinese news agency read like the best of Cold War ruminations from the Soviet Union's official media. "Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing," Xinhua said. The editorial went on to envision an ideal "de-Americanized" world, in which smaller, developing economies _ which China at times calls itself despite being the world's second largest economy_ play a larger role. "What may also be included as a key part of an effective reform is the introduction of a new international reserve currency that is to be created to replace the dominant U.S. dollar, so that the international community could permanently stay away from the spillover of the intensifying domestic political turmoil in the United States," the news agency said. Read more here: http://www.mcclatchydc.com/2013/10/14/205337/frenemy-china-calls-for-de-americanized.html#storylink=cpy [F&E] [Media] [Reserve]
• Commentary: U.S. fiscal failure warrants a de-Americanized world
  English.news.cn 2013-10-13 09:57:25 By Xinhua writer Liu Chang BEIJING, Oct. 13 (Xinhua) -- As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world. [F&E] [Reserve]
• Rare 1980s pics of First Lady at war front
  China.org.cn, October 14, 2013 Peng Liyuan, wife of Chinese President Xi Jinping, sings to Chinese troops fighting the Vietnamese at Laoshan Mountain in Yunnan Province. As a famous Chinese military singer, Peng used the songs to express her sincere care for the frontline troops many times throughout the 1980s.
• China bypasses American ‘New Silk Road’ with two of its own
  By Simon Denyer, BEIJING — Armed with tens of billions of dollars in investment deals and romantic tales of ancient explorers, Chinese President Xi Jinping has spent much of the past month promoting his vision of two new “Silk Roads” to connect his country to the West and secure its energy supplies — one by land and another by sea. In the process, he has eclipsed an American vision of a New Silk Road that was advanced with much fanfare by then-Secretary of State Hillary Clinton two years ago and was supposed to revitalize Afghanistan as the link between Central and South Asia. The contrast between the two visions — one with huge sums of money on the table now, the other struggling to get off the ground — only underlines how China’s ever-growing clout in Asia is challenging the influence of the United States. [China competition]
• National defense report released by MND
  National defense report released by MNDCheng Yun-peng (right), director-general of the MND Department of Strategic Planning, displays the 2013 National Defense Report Oct. 8 in Taipei City. (CNA) •Publication Date:10/09/2013 •Source: Taiwan Today The 2013 National Defense Report was released Oct. 8 by the ROC Ministry of National Defense, spotlighting Taiwan’s strategic situation, defense strategies, combat power and status of relevant services. Published in book form, the report sets out MND policies and efforts in such areas as changes to the conscription system, development of the armed forces and disaster prevention and relief. Cheng Yun-peng, director-general of the MND Department of Strategic Planning, said the ministry hopes the report will help the public better understand national defense affairs and garner support for relevant reforms. These include transforming the military into an all-volunteer force by the end of 2016.
• China, Vietnam gear up to advance bilateral relations
  Xinhua, October 13, 2013 Chinese Premier Li Keqiang arrives Sunday for an official visit to Vietnam, bringing along a fresh opportunity to further consolidate mutual trust and boost bilateral cooperation. During his stay, Li will meet leaders of the neighboring country for discussions on promoting bilateral friendship and deepening strategic cooperation, and the two sides are expected to ink multiple cooperation documents. Particularly, the premier's visit will help push forward bilateral cooperation along three main lines: maritime cooperation, onshore cooperation and financial cooperation, said Qu Xing, president of the China Institute of International Studies.
• How Does China Solve a Problem Like North Korea?
  By Scott Snyder and See-won Byun Sep 15, 2013 Relations entered an active phase of leadership exchanges following North Korea’s satellite launch, its nuclear test, and the passage of UN Security Council resolutions condemning these actions. Although the aftermath drove continued debate on the extent of Chinese leverage and patience with Pyongyang, Beijing has reaffirmed its commitment to bring North Korea back to multilateral talks through revived bilateral exchanges with Pyongyang. Beijing’s frustration with its North Korean ally has expanded Chinese willingness to include denuclearization as a policy objective it shares with the US and South Korea, but differences remain regarding long-term strategic interests and the preferred tools for pursuing the objective. [China NK]
• S. Korea seizes Chinese fishing boats
  Xinhua, October 7, 2013 The Chinese consulate general in Kwangju confirmed on Monday that two Chinese fishing boats suspected of illegal fishing in South Korean waters were detained by the country's coast guard in Mokpo. The two fishing boats were suspected of illegal fishing in South Korean waters near Xinan county in Jeollanam-do at 6:35 a.m. and 8:19 a.m. local time respectively, the Yonhap News agency quoted the coast guard in Mokpo as saying. South Korean coast guard caught the two boats at once. Four South Korean marine police and two Chinese fishermen were injured when the coast guard attempted to intercept the fishing boats. All the injured have been sent to the hospital, none of whom are life threatening, official said. The detained ships are the 120-ton Luying-yu No. 51190 and No. 51189, according to the reports. South Korean officials have already informed the Chinese consulate of this issue. But as the fishing boats have not reached the shore yet, the Chinese consulate is still communicating with the coast guard to verify the details, the consulate officials told Xinhua. The Chinese consulate general in Kwangju demands a fair and square investigation and the guarantee of Chinese citizens' safety and legitimate rights from the South Korean side.
• China’s Fear Of US May Tempt Them To Preempt: Sinologists
  By Sydney J. Freedberg Jr. on October 01, 2013 at 4:05 PM Sun Tzu said: Whoever is first in the field and awaits the coming of the enemy will be fresh for the fight; whoever is second in the field and has to hasten to battle will arrive exhausted. WASHINGTON: Because China believes it is much weaker than the United States, they are more likely to launch a massive preemptive strike in a crisis. Here’s the other bad news: The current US concept for high-tech warfare, known as Air-Sea Battle, might escalate the conflict even further towards a “limited” nuclear war, says one of the top American experts on the Chinese military. [This is one in an occasional series on the crucial strategic relationship and the military capabilities of the US, its allies and China.] What US analysts call an “anti-access/area denial” strategy is what China calls “counter-intervention” and “active defense,” and the Chinese appraoch is born of a deep sense of vulnerability that dates back 200 years, China analyst Larry Wortzel said at the Institute of World Politics: “The People’s Liberation Army still sees themselves as an inferior force to the American military, and that’s who they think their most likely enemy is.” [Conflict] [inversion] [Pre-emptive]
• Turkey Looks to China on Air and Missile Defense?
  By Bulent Aliriza, Samuel J. Brannen Oct 8, 2013 The Turkish Defense Industry Executive Committee (SSIK), chaired by Turkish Prime Minister Erdogan and including as its other members Minister of Defense Ismet Yilmaz and Chief of the Turkish General Staff General Necdet Ozel, announced on September 26 that Turkey will begin talks with the China Precision Machinery Export-Import Corporation (CPMIEC) on a long-range air and missile defense system (T-LORAMIDS) worth $3.44 billion, under Turkey’s specified budget of $4 billion. CPMIEC’s FD-2000 (an export variant of the HQ-9 based on the Russian S-300) has been in competition with U.S. partners Raytheon and Lockheed Martin’s Patriot PAC-3, Russian Rosoboronexport’s S-400, and the Italian-French Eurosam’s SAMP/T Aster 30. Turkey plans to acquire up to four missile firing units in addition to 288 surface-to-air missiles/interceptors under a co-production agreement. The Eurosam system came in second, the Patriot system third and Rosoboronexport was eliminated. Should the talks on an agreement with CPMIEC fail, Ankara intends to engage Eurosam. It is worth noting that in the 1990s Turkey worked with CPMIEC in the licensing and technology transfer to produce several short-range ballistic missile systems that it could not acquire from the United States and Europe. Several newspaper accounts had appeared over the summer quoting unnamed Turkish Defense Ministry officials claiming that the Chinese system would be selected. Nevertheless, the choice still came as a surprise after many years during which a decision was delayed. Moreover, the T-LORAMIDS tender had been revised numerous times since it was first announced in 2007. Competitors were repeatedly pressed for the best price and maximum technology transfer and co-production value, an emphasis for Turkish defense acquisition since 1985, but more aggressively pursued by the current government. [Missile defense] [Decline] [China rising]
• The China Fixation
  by JOHN PILGER Countries are “pieces on a chessboard upon which is being played out a great game for the domination of the world,” wrote Lord Curzon, Viceroy of India, in 1898. Nothing has changed. The shopping mall massacre in Nairobi was a bloody façade behind which a full-scale invasion of Africa and a war in Asia are the great game. The al-Shabaab shopping mall killers came from Somalia. If any country is an imperial metaphor, it is Somalia. Sharing a common language and religion, Somalis have been divided between the British, French, Italians and Ethiopians. Tens of thousands of people have been handed from one power to another. “When they are made to hate each other,” wrote a British colonial official, “good governance is assured.” Today, Somalia is a theme park of brutal, artificial divisions, long impoverished by World Bank and IMF “structural adjustment” programmes, and saturated with modern weapons, notably President Obama’s personal favourite, the drone. The one stable Somali government, the Islamic Courts, was “well received by the people in the areas it controlled,” reported the US Congressional Research Service, “[but] received negative press coverage, especially in the West.” Obama crushed it; and in January, Hillary Clinton, then secretary of state, presented her man to the world. “Somalia will remain grateful to the unwavering support from the United States government,” effused President Hassan Mohamud, “thank you, America.” The shopping mall atrocity was a response to this — just as the attack on the Twin Towers and the London bombings were explicit reactions to invasion and injustice. Once of little consequence, jihadism now marches in lockstep with the return of unfettered imperialism. [China confrontation] [Africa] Fragmentation] [Allegiance]
• US scientists boycott Nasa conference over China ban
  Nasa facing backlash from US researchers due to rejection of Chinese nationals from conference Ian Sample, Science correspondent theguardian.com, Saturday 5 October 2013 nasa faces backlash from us researchers A law passed in March prohibits anyone from China from setting foot in a Nasa building. Photograph: Pablo Martinez Monsivais/AP Nasa is facing an extraordinary backlash from US researchers after it emerged that the space agency has banned Chinese scientists, including those working at US institutions, from a conference on grounds of national security. Nasa officials rejected applications from Chinese nationals who hoped to attend the meeting at the agency's Ames research centre in California next month citing a law, passed in March, which prohibits anyone from China setting foot in a Nasa building. The law is part of a broad and aggressive move initiated by congressman Frank Wolf, chair of the House appropriations committee, which has jurisdiction over Nasa. It aims to restrict the foreign nationals' access to Nasa facilities, ostensibly to counter espionage. But the ban has angered many US scientists who say Chinese students and researchers in their labs are being discriminated against. A growing number of US scientists have now decided to boycott the meeting in protest, with senior academics withdrawing individually, or pulling out their entire research groups. [China confrontation] [Governance]
• Dangerous Crossroads: US-Japan Talks Escalate War Preparations against China
  By Peter Symonds Global Research, October 05, 2013 World Socialist Web Site The so-called “2 plus 2” meeting in Tokyo this week of US Secretary of State John Kerry and Defence Secretary Chuck Hagel with their Japanese counterparts marked a significant escalation of the US military build-up against China. The lengthy joint statement announced major deployments of hi-tech US weaponry to Japan and a green light for Japanese remilitarisation, within the framework of “a more robust alliance”.Thursday’s talks took place in the wake of the Obama administration’s decision to postpone an imminent military attack on Syria last month in the face of mass popular opposition, both in the United States and around the world. The “2 plus 2” meetings make clear that despite the postponement of war with Syria, Washington’s plans for military escalation are proceeding apace. Washington’s decision to back down provoked consternation among US allies not only in the Middle East, but in Asia, where Obama’s “pivot” has encouraged Japan and other countries to adopt a more aggressive stance towards China. [Japanese remilitarisation] [US Japan alliance] [China confrontation] [AirSea Battle]
• Korean Exports to China Losing Competitive Edge
  A growing number of Korean exports to China are losing competitiveness with local products as the second stage of free trade talks with China approaches, a study shows. The Hyundai Research Institute on Thursday said the number of Korean exports to China that had a strong competitive edge over local products fell from 349 in 2010 to 299 last year. As recently as 2005, the number was 371. [China competition]
• North Korea and the Myth of U.S.-China Rivalry
  Despite hawkish new posturing from the U.S., China is still basically playing by Washington's rules when it comes to North Korea. By Kailash Srinivasan, August 29, 2013. As Iraq and Afghanistan fade from memory, North Korea has entered the U.S. imagination as the latest threat to national security. Alongside hysterical warnings of impending attack, many foreign policy analysts argue that events on the peninsula reflect an emergent rivalry between China and the United States. There is solid evidence behind this case. Tensions on the Korean Peninsula have come on the heels of the Obama administration’s “Pacific Pivot,” a large-scale effort to redirect U.S. military and diplomatic resources from the Middle East to East Asia. The United States has often admonished China for its inability to restrain the latter’s border ally and dependent. Recent news that the Pentagon will fund 11 new missile defense silos to be placed on the west coast of the United States ostensibly signals that the United States has the material force to back up its threats. [Bizarre] [China NK]
• Eight Questions: Larry M. Wortzel, ‘Chinese Military Power Goes Global’
  China is expanding its military capabilities, shifting its role from coastal defense to protecting the country’s interests on a global scale. In “The Dragon Extends its Reach: Chinese Military Power Goes Global,” Larry M. Wortzel, a specialist in Asian defense and counterintelligence issues, assesses China’s strategic objectives and military capabilities — as well as the policy challenges for the U.S. China Real Time spoke with the author, a commissioner of the congressionally appointed U.S.-China Economic and Security Review Commission, former director of the Asian Studies Center of the Heritage Foundation, and a 32-year veteran of the U.S. military. Edited excerpts: [China confrontation] [Military balance]
• Technical Bulletin #59 on Prohibition of Dual Use Exports to North Korea
  Penglai (China) Quarantine officers monitor North Korean ships for nuclear radiation upon entry in March 2013. (http://www.penglai.sdciq.gov.cn/zwpd/xwbd/xwbd/201303/t20130318_48189.htm) by Roger Cavazos, Peter Hayes and David von Hippel September 26, 2013 This Special Report takes an incisive look into Technical Bulletin #59 on Prohibition of Dual Use Exports to North Korea, the recently released 236 page list of items Chinese companies and individuals are banned from trading with North Korea. [Sanctions] [Appeasement]
• China Urges U.S. to Quickly Return to Nuke Talks With North Korea
  Sept. 16, 2013 North Korean First Vice Foreign Minister Kim Kye Gwan, left, meets senior North Korean nuclear negotiator Ri Yong Ho in Pyongyang last year. The two diplomats are in Beijing this week for semi-formal multinational talks on the North's nuclear-weapons work (AP Photo).North Korean First Vice Foreign Minister Kim Kye Gwan, left, meets senior North Korean nuclear negotiator Ri Yong Ho in Pyongyang last year. The two diplomats are in Beijing this week for semi-formal multinational talks on the North's nuclear-weapons work (AP Photo). China called on the United States during high-ranking bilateral talks over the weekend to resume delayed multinational negotiations focused on ending North Korea's nuclear-weapons development, the Yonhap News Agency reported. The Saturday conversation -- between U.S. Assistant Secretary of State for East Asian and Pacific Affairs Daniel Russel, Chinese Foreign Minister Wang Yi and other top Chinese officials -- came as Beijing is trying to convince Washington to send an official representative to semi-formal six-party talks scheduled for Wednesday. [Six Party Talks]
• China's Syria Strategy
  Posted: 09/16/2013 1:35 pm With Russia's position on Syria being widely publicized as of late, it's easy to forget that China, too, has played a pivotal role in shaping the discussion over Syria, voting with Russia against American and British sponsored U.N. resolutions aimed at imposing sanctions on Syria and actuating international pressure on the government of Bashar al-Assad. While it's convenient to dismiss China's veto alliance with Russia as purely ideological, it's nonetheless still important to ask the ancillary questions surrounding China's position: What does China have a stake in? What does China get out of the deal? And why risk alienating your number one and two export markets, the United States and Europe? [Syria]
• Could a maritime conflict start a Sino-American war?
  by Mark Valencia Special To The Japan Times Sep 2, 2013 KANEOHE, HAWAII – On Aug. 26, I read a rather frightening op-ed in the Los Angeles Times coauthored by David Gompert — until recently the second-highest-ranking U.S. intelligence official in the Obama administration. What scared me was his sober assessment of the possibility that a conflict in the maritime arena could trigger a China-U.S. Armageddon — at least for Asia. This is not a new thought but heretofore had been the domain of fiction writers, wolf-criers and video-game makers. There is now little doubt that China and the West are going to clash. They are already competing in both military and civilian ways and more fundamentally in values and the pursuit of political power. The as yet unanswered questions are will the conflicts become “physical,” and if so how and why? [Conflict]

• China 'to rent five per cent of Ukraine'
  Ukraine has agreed a deal with a Chinese firm to lease five per cent of its land to feed China's burgeoning and increasingly demanding population, it has been reported. By Alex Spillius, Diplomatic Correspondent 7:18PM BST 24 Sep 2013 It would be the biggest so called "land grab" agreement, where one country leases or sells land to another, in a trend that has been compared to the 19th century "scramble for Africa", but which could now spread to the vast and fertile plains of eastern Europe. Under the 50-year plan, China would eventually control three million hectares, an area equivalent to Belgium or Massachusetts, which represents nine per cent of Ukraine's arable land. Initially 100,000 hectares would be leased. The farmland in the eastern Dnipropetrovsk region would be cultivated principally for growing crops and raising pigs. The produce will be sold at preferential prices to Chinese state-owned conglomerates, said the Xinjiang Production and Construction Corp (XPCC), a quasi-military organisation also known as Bingtuan. XPCC said on Tuesday that it had signed the £1.7 billion agreement in June with KSG Agro, Ukraine's leading agricultural company. KSG Agro however denied reports that it had sold land to the Chinese, saying it had only reached agreement for the Chinese to modernise 3,000 hectares and "may in the future gradually expand to cover more areas". [Media]
• China defends military training in W. Pacific
  English.news.cn | 2013-09-26 19:47:25 | Editor: An BEIJING, Sept. 26 (Xinhua) -- China on Thursday said the training by its military vessels and jets in the west Pacific is routine. "The training by Chinese military vessels and aircraft in the west Pacific is routine and in line with the international law and practice," Chinese Defense Ministry spokesman Geng Yansheng said at a daily press briefing on Thursday. Geng's comments came after the Japanese defense ministry announced new monitoring facilities on Iwo Jima, an island 1,200 kilometers south of Tokyo, to collect information about Chinese activity in the Pacific. "No one should overreact to the legal actions of the Chinese military. Only those with ulterior motives will overreact," Geng said. Regarding Japanese defense officials' remarks on the deployment of self-defense forces, Geng urged the international community to be alert to Japan's moves to depart from peace and development, challenge the post-war international order and expand its military and show its force. Concerning Japan's comments on Chinese drones, Geng said Chinese military aircrafts never infringe on other countries' airspace. "China never allows other countries' aircraft to infringe on China's airspace." [Japanese remilitarisation]
• Why China Will Disappoint the Pessimists Yet Again
  By Jim O’Neill Sep 25, 2013 11:00 PM GMT+0100 China’s eagerly anticipated “hard landing” hasn’t happened yet, and recent indicators make me wonder (not for the first time) if it ever will. In the past two months, the Chinese economy has actually shown signs of accelerating. Constant pessimism in financial markets about the country’s prospects is only partly guided by economic analysis. There’s also the faith-based view that growth as rapid as China’s simply can’t go on -- and that a non-democratic country really shouldn’t expect to prosper. Many skeptics have been highlighting China’s impending collapse for almost as long as I have been following the country. Maybe the skeptics should be viewed a little more skeptically. By the end of this year, China’s gross domestic product will be roughly $9 trillion, making its economy comfortably more than half the size of the U.S., and half as big again as Japan. I recall once projecting that China might be as big as Japan by 2015. The country’s far ahead of that optimistic schedule. [China rising]
• Chinese foreign minister discusses six-party talks in Washington
  Posted on : Sep.23,2013 16:04 KST Chinese Foreign Minister Wang Yi converses with US Secretary of State John Kerry before their bilateral meeting in Washington D.C., Sept. 19. (AFP/Yonhap News) US officials say Washington’s position on denuclearization before dialogue has not changed By Park Hyun, Washington correspondent North Korea said recently that it is prepared to adhere to the Sep. 19 joint statement from 2005 and the Feb. 29 agreement from 2012, said Chinese Foreign Minister Wang Yi during a speech at the Brookings Institution in Washington, D.C., on Sep. 20. Wang said that recent developments made him optimistic about the likelihood of the six-party talks being resumed. Wang added that North Korean officials had expressed their willingness to denuclearize, emphasizing the fact that this was the dying wish of late North Korean leaders Kim Il-sung and Kim Jong-il. He said that China is in discussions with the US about how to set up a “reasonable threshold” for resuming the six-party talks. [Six Party Talks]
• Papers confirm U.S. planes patrolled around Spratlys
  Aircraft apparently monitored Chinese in South China Sea Kyodo Jul 30, 2013 MANILA – A classified government document seen by Kyodo News on Friday confirmed that U.S. Navy surveillance planes conduct routine maritime patrol to monitor activities in the disputed South China Sea. “(There were) confirmed flights of U.S. P3C Orion aircraft over the South China Sea especially (in the contested Spratly Islands),” according to the document. [China confrontation] [South China Sea]
• China bans several weapon-related North Korea exports
  File photo: North Korean soldiers parade with missiles and rockets during a mass military parade in Pyongyang, North Korea, 27 July 2013 North Korea maintains one of the world's largest standing armies China says it has banned the export to North Korea of several weapon-related technologies which could be used in the development of nuclear weapons. China's Commerce Ministry published the list, which includes components for nuclear explosive devices and rocket systems, on Monday. It said the move would help implement UN resolutions on North Korea, and would be effective immediately. Analysts say the ban shows China taking a firmer line against its ally. The list includes technology in nuclear, missile, chemical and biological fields. It says the restrictions are developed in accordance with several UN Security Council resolutions on North Korea. [Sanctions]
• A Chinese tour de force in Central Asia
  2013-09-18 | Aleksandra Jarosiewicz The President of China, Xi Jinping, toured Central Asia between 3-13 September, visiting Turkmenistan, Kazakhstan, Uzbekistan and finally Kyrgyzstan, where he took part in the Shanghai Cooperation Organisation summit. It was the first visit by the new president of the People’s Republic of China (PRC) to the region, and served as an unprecedented demonstration of China's position.The visit was also part of the process of strengthening that position further. During the tour, a series of economic agreements was signed with each of the countries in the region, and China presented its strategy for Central Asia (principally in a policy speech given in Astana on 7 September). Xi’s visit is a prelude to the closer integration of the region in the fields of infrastructure, trade & finance and energy. The rapid development of economic cooperation and China’s de facto sponsorship of Central Asia’s weaker states (which have been unable to attract foreign investment, and have been surviving only with international assistance) is inevitably leading to a situation where the Central Asian states are, to varying degrees, falling into political dependence on China, which in some cases is even taking on a neo-colonial character. In the strategic dimension, the PRC is avoiding direct competition with Russia, although it is gaining a political advantage in the region with the help of its economic instruments.
• China’s Unmatched Influence in Central Asia
  Martha Brill Olcott Article September 18, 2013 Summary Beijing is emerging as the big winner in Central Asia, displacing Washington and Moscow while ensuring that engagement with countries in the region takes place on its terms. China has come to displace both the United States and Russia as the great power with the most influence in Central Asia. Chinese President Xi Jinping just ran a ten-day victory lap through the region. Rarely has a leader of a major power accomplished so much in such a short time. Xi’s trip included state visits to four countries, an appearance at the Shanghai Cooperation Organization (SCO) summit in Bishkek, and a stop in Moscow for the G20 meeting and bilateral talks with Russian President Vladimir Putin. The economic potential of the joint projects that were inaugurated, the bilateral and strategic partnerships that were signed, and the themes underscored in Xi’s major addresses testify to China’s importance in the region. By adopting policies that avoided the formal or even informal invoking of a “Great Game,” China is emerging as the big winner, with successful engagement on its terms and only in issue areas relating to its direct national security.
• Bo Xilai sentenced to life in prison for bribery, embezzlement, power abuse
  Xinhua, September 22, 2013 Bo Xilai, former secretary of the Chongqing Municipal Committee of the Communist Party of China (CPC) and a former member of the CPC Central Committee Political Bureau, was sentenced to life imprisonment on Sunday for bribery, embezzlement and abuse of power. He was deprived of political rights for life, and his personal assets were also confiscated. The Jinan Intermediate People's Court in east China's Shandong Province announced the verdict. Bribes received directly by Bo or via his family totaled 20.44 million yuan (about 3.3 million U.S. dollars), the court decided. [Bo Xilai] [Corruption]
• U.S., China Must Come Together Over N.Korea Talks
  Top U.S. nuclear envoy Glyn Davies arrived in Seoul Monday as part of a trip that also takes in China and Japan to gauge the positions of members of the six-party talks aiming to denuclearize North Korea. The U.S. and China are at considerable odds over the question of resuming the six-party talks, which hit the rocks more than five years ago. In talks with U.S. President Barack Obama last Friday at the G20 summit, Chinese President Xi Jinping voiced hopes to resume the six-party talks "soon." But in a press briefing later, a White House official said the U.S. does not "support resumption of talks simply for the sake of a resumption of talks." Beijing had a tough time convincing Pyongyang to return to the negotiating table after its third nuclear test in February, so now of course it wants the six-party talks to resume as soon as possible, lest any delays spur more provocations from North Korea. [Chinese IR]
• Top N.Korean Diplomat in China Again
  North Korea's de-facto chief diplomat Kim Kye-gwan visited Beijing on Monday for the second time in three months. His ostensible purpose was to attend an academic seminar focusing on the six-party talks, which brought together academics and government officials from the countries participating in the negotiations. Kim was for many years North Korea’s chief negotiator in the talks.
• N. Korean officials arrive in Beijing for ‘1.5 track’ talks
  Posted on : Sep.17,2013 16:00 KST Modified on : Sep.17,2013 16:16 KST Six-party talks members will all attend, with South Korea and Japan not sending chief negotiators By Park Byong-su, staff reporter and Seong Yeon-cheol, Beijing correspondent North Korea’s team of nuclear negotiators, including Kim Kye-gwan, first vice minister of the Ministry of Foreign Affairs, was dispatched to attend the “1.5 track” six-party talks that will be held in Beijing on Sep. 18. The seminar is supposed to bring together representatives from government and the private sector. Along with Kim, North Korean Foreign Ministry vice minister Ri Yong-ho and deputy director-general Choi Son-hui arrived at Beijing Capital International Airport on Air Koryo flight JS221 on Sep. 16. Without saying a single word to reporters asking about North Korea’s position on resuming the six-party talks, Kim got in a vehicle arranged by the North Korean embassy in Beijing and left the airport.
• Kim Kye Gwan Visits China
  Pyongyang, September 20 (KCNA) -- Kim Kye Gwan, first vice foreign minister of the DPRK, and his party visited China at its invitation from September 16 to 20. During their stay in China, they separately met Yang Jiechi, state councilor of China, Wang Yi, minister of Foreign Affairs, Zhang Yesui, executive vice-minister of Foreign Affairs, and Wu Dawei, special representative of the Chinese government for the issue of the Korean Peninsula, and had candid and in-depth discussions with them on the issue of bilateral relations, the situation on the peninsula, the resumption of six-party talks and other matters of common concern. They also attended an international seminar sponsored by the Chinese side to mark the 8th anniversary of the adoption of the September 19 joint statement and clarified the fair and aboveboard stand of the DPRK to protect the peace and stability on the peninsula and in the rest of the Northeast Asian region.

• Is the nine dash line dead?
  In the context of the PRC charm offensive at ASEAN (leavened by a sharp slap at Philippine's President Aquino), the Beijing Review has published a detailed explanation of "core interests" that also provides some pretty significant looking and novel interpretations of China's South China Sea claims. [South China Sea]
• China's declaration of key interests misinterpreted
  Beijing Review, August 26, 2013 At a study session with members of the Political Bureau of the Communist Party of China (CPC) Central Committee on July 30, Chinese President Xi Jinping, who is also General Secretary of the CPC Central Committee, stressed in a speech that China is preparing to cope with complexities, enhance the nation's capacity in safeguarding maritime rights and interests, and resolutely safeguard the nation's maritime rights and interests. It was not the first time Xi publicly stressed the importance of safeguarding China's core national interests after the leadership transition. While giving a speech at a similar group study session on January 28, Xi said, "We will stick to the road of peaceful development, but will never give up our legitimate rights and will never sacrifice our national core interests. No country should presume that we will trade our core interests or that we will allow harm to be done to our sovereignty, security or development interests." So what are China's core national interests? [South China Sea] [China global strategy]
• Xi Jinping’s Overlooked Revelation on China’s Maritime Disputes
  By M. Taylor Fravel Although unnoticed by foreign analysts, Xi Jinping recently signaled a desire to dial back tensions in the South and East China Seas. At the end of July, the Chinese Communist Party’s ruling Politburo held a special study session on the nation’s growing maritime power, which has helped cause controversy with several neighboring states. Official media reports about the meeting emphasized a speech by President Xi Jinping that repeated the main policy themes from the recent 18th Party Congress, calling for China to become a major maritime power by developing its maritime resources and protecting the ocean environment. But Xi’s most interesting remarks have received scant attention. Under China’s system of collective leadership, speeches at Politburo meetings usually reflect the consensus of the participants – in this case, China’s top 25 leaders. Near the end of his address at the most recent study session, Xi discussed China’s ongoing maritime disputes and predictably repeated many now common talking points, such as “never giving up its legitimate rights and interests,” especially the nation’s core interests. Nevertheless, two other phrases he used may illuminate how Beijing may handle these disputes and therefore deserve greater attention. Xi’s remarks suggest that Beijing may be reconsidering the merits of its most assertive actions in the East and South China Seas—ones that have caused grave diplomatic problems with Japan and many Southeast Asian countries.
• China, Syria, Reuters, and the Security Politics of Middle East Energy
  Reuters has a good article by Ben Blanchard on China’s frustrations in the Middle East. Since it is unable to project power in the Middle East, the PRC has been forced to stand by as the U.S. makes a royal cockup of the region. Unfortunately, I feel the article delivered a clanger in its conclusion—that the PRC relies on U.S. good offices to “guarantee stability” and keep the oil flowing: China effectively relies on a strong U.S. military presence in the region to guarantee stability and the smooth flow of oil, especially through the Strait of Hormuz, which Iran has threatened in the past to close in the event of war. One thing the US has not delivered to the Middle East in the last fifteen years is “stability”. And I don’t think the PRC’s strategic thinkers necessarily believe that Middle East instability is a bigger threat to China’s oil supply than the US presence. After all, if there’s one thing that everybody in the Middle East, including mortal enemies Iran and Saudi Arabia, is they all want to export to China. As to whether or not the United States is simply and altruistically interested in making sure that China’s energy purchases make it safely through the Straits of Hormuz… [China confrontation] [oil]
• Details of Bo Xilai's trial
  Xinhua, August 28, 2013 Photo taken on Aug. 26, 2013 shows the court trial of Bo Xilai (C, front) at Jinan Intermediate People's Court in Jinan, capital of east China's Shandong Province.[Xinhua] Photo taken on Aug. 26, 2013 shows the court trial of Bo Xilai (C, front) at Jinan Intermediate People's Court in Jinan, capital of east China's Shandong Province.[Xinhua] The trial of Bo Xilai, charged with bribery, embezzlement and abuse of power, concluded Monday at Jinan Intermediate People's Court, after hearings from Aug. 22 to Aug. 26. The verdict will be announced at a date yet to be decided. At the trial, prosecutors demanded a heavy sentence for Bo while the defendant denied the charges. In his final statement, Bo said he made serious errors of judgement when handling the defection of Wang Lijun, former vice mayor and police chief of Chongqing. "Wang's defection caused vile impacts at home and abroad and undermined the image of the Party and country," he said. "I am deeply ashamed and filled with regret, but I did not intend to misuse my power." He also denied the bribery and embezzlement charges against him. "The charges are not true. My mistake, which was serious, was that I did not discipline my family and subordinates." "I know I am not a perfect person. I had a strong ego and bad temper. I made serious mistakes," he said. "I sincerely admit that my failure to manage my family had a negative effect on the country." "I sincerely accept the investigation from the party and the judicial departments," he said. [Bo Xilai]
• Kim Kye Gwan Meets Special Envoy of Chinese Government for Issue of Korean Peninsula
  Pyongyang, August 27 (KCNA) -- Kim Kye Gwan, first vice-minister of Foreign Affairs, met and had a friendly talk with Wu Dawei, special envoy of the Chinese government for the issue of the Korean Peninsula, and his party who paid a courtesy call on him on Tuesday. Present there were officials concerned and the charge d'affaires ad interim of the Chinese embassy here.
• Kim Jong-un, 'No more security threats'
  North Korea's leader, Kim Jong-un (right) waves to crowds below him with Chinese envoy Li Yuancho (left). By Isaac Kim North Korea’s Communist Party Chairman Kim Jong-un told China’s Vice President Li Yuanchao there will no longer be a security threat in the Northeast Asian region, reported Japan’s daily Mainichi Shimbun on Aug. 27. The paper reported the remarks came from North Korean authorities during the Arirang Festival in Pyongyang on July 25. During an unofficial meeting, Li requested North Korea to refrain from causing disorder on the Korean Peninsula. He also emphasized the peninsula should be free of nuclear weapons. Kim Jong-un replied that China’s logic was reasonable. On the part of security, he promised to keep his word in maintaining peace in the region, according to the paper. However, it was not clear whether Chairman Kim discussed dismantling his nuclear weapons. One person who is close to the North’s leading party, stated, “North Korea holds no animosity toward agents of IAEA.” Chinese ambassador Wu Dawei believes North Korea may discuss the possibility of denuclearization, said the paper. It added the Chinese envoy found Kim Jong-un to be “quite modest.” [Media] [Spin]
• Feudalism Makes a Comeback in China
  Teng He Aug 22 2013, 11:37 AM ET Recent news from China has focused on how the politically well-connected and well-off have used their positions to avoid punishment and enjoy preferential treatment. Commentators in the Western news media have likened these trends, fueled in part by economic liberalization, to a Chinese "Gilded Age," in reference to the period of wealth creation, freewheeling robber barons, and social inequity in the United States a century ago. But how do today's Chinese see their own country? Linguistic trends reveal that some fear China's history is repeating itself. Both online and off, Chinese have dusted off outdated vocabulary to describe their government and various social phenomena. Old fashioned phrases likeguanfu (??) "Official Mansion" and yamen (??) "Official Gates" are used to refer to the authorities or the police, while tianchao (??) "Celestial Dynasty" is used as a synonym for China in general. These phrases were seldom heard in the days of Mao's China, when they were seen as obsolete artifacts of a feudal era that had been eclipsed by the new and glorious socialist state. Once again part of everyday speech, they are usually used in a mocking or ironic context, when citizens criticize the failings of government policies or air their frustrations with the state of Chinese society. These changes show that many Chinese feel they are once again living in "Old China."
• Surrounded: How the U.S. Is Encircling China with Military Bases
  The U.S. military is encircling China with a chain of air bases and military ports. The latest link: a small airstrip on the tiny Pacific island of Saipan. The U.S. Air Force is planning to lease 33 acres of land on the island for the next 50 years to build a "divert airfield" on an old World War II airbase there. But the residents don't want it. And the Chinese are in no mood to be surrounded by Americans. The Pentagon's big, new strategy for the 21st century is something called Air-Sea Battle, a concept that's nominally about combining air and naval forces to punch through the increasingly-formidable defenses of nations like China or Iran. It may sound like an amorphous strategy -- and truth be told, a lot of Air-Sea Battle is still in the conceptual phase. But a very concrete part of this concept is being put into place in the Pacific. An important but oft-overlooked part of Air-Sea Battle calls for the military to operate from small, bare bones bases in the Pacific that its forces can disperse to in case their main bases are targeted by Chinese ballistic missiles. [China confrontation] [Conflict]
• ROC concerned by Japanese action near Diaoyutais
  ROC concerned by Japanese action near DiaoyutaisRecent incursions by Japanese nationalists into ROC territorial waters off the Diaoyutai Islands are of serious concern, the MOFA said. (CNA) •Publication Date:08/19/2013 •Source: Taiwan Today Recent action by a Japanese activist group in ROC territorial waters off the Diaoyutai Islands is a matter of serious concern, according to the Ministry of Foreign Affairs Aug. 18. “All parties are urged to refrain from actions that could undermine regional peace and stability,” the MOFA said in a statement. The remarks follow media reports that five boats carrying about 20 members of a Japanese nationalist group arrived earlier in the day in waters near the Diaoyutai Islands. They approached within 1 nautical mile of the islets. [Diaoyu]
• China's Leader Embraces Mao as He Tightens Grip on Country
  By JEREMY PAGECONNECT Borrowing from Mao Zedong's playbook, Chinese President Xi Jinping has launched a "rectification" campaign to purify the Communist Party and tighten limits on speech. Yiching Wu, professor and historian, talks about how politicians use Mao's legacy to criticize the status quo. . WUHAN, China—On a visit here in July, Chinese President Xi Jinping went to a lakeside villa where Mao Zedong spent summers in the 1950s enjoying such luxuries as a swimming pool and air conditioning. Opening a new exhibition there that makes no mention of the millions who died under Mao's leadership, Mr. Xi declared that the villa should be a center for educating youth about patriotism and revolution. A week earlier, he went to a village from which Mao attacked Beijing in 1949. There, Mr. Xi vowed that "our red nation will never change color." [Mao Zedong] [Xi Jinping]
• Promoting Asian integration
  Updated: 2013-08-23 08:30 By Chen Jimin ( China Daily) Greater and inclusive cooperation requires that regional states play an autonomous role and work on the easy issues first China and the Republic of Korea seem to hold different views on the role of the United States-ROK alliance. China believes that, as the legacy of the Cold War, the continuation of US-ROK alliance is one of the main reasons for the tensions on the Korean Peninsula, while the ROK regards the alliance as a linchpin for peace and stability on the peninsula and in Asia. Historically, the US-Asian alliances were in response to the challenges of the communist bloc led by the former Soviet Union. With the end of Cold War, the targets for the alliances are becoming increasingly blurred. Logically speaking, the alliances should come to an end. However, in order to further safeguard its Asian alliance system, the US has promoted a security threat in Asia from the Democratic People's Republic of Korea, while shaping a new strategic threat in China's rise. As relations between China and the major Asian countries have improved, the US has used various ways to try and project a China threat, in order to have a legitimate basis for keeping a US military presence in Asia. This has increased the distrust among major Asian countries, especially China and Japan, which has not only become an obstacle for the smooth development of their relationship, but also sowed the seeds for regional instability. [China global strategy]
• MOFA reaffirms US commitment on arm sales
  The ROC Ministry of Foreign Affairs is confident the U.S. will continue providing Taiwan with defensive weapons. (Courtesy of MOFA) •Publication Date:08/23/2013 •Source: Taiwan Today Washington has reiterated its commitment to continue selling Taipei defensive weapons under the Taiwan Relations Act, according to the ROC Ministry of Foreign Affairs Aug. 22. “The U.S. position on arm sales to Taiwan is clear and this stance was reaffirmed to mainland China in a recent meeting,” a MOFA official said. The official was referring to an Aug. 20 meeting between U.S. Defense Secretary Chuck Hagel and his mainland Chinese counterpart Chang Wanquan in Washington. According to media reports, mainland Chinese defense official Guan Youfei, who accompanied Chang, said the issue of Washington selling Taipei weapons is likely to be included in the proposed U.S.-mainland China working groups addressing military issues of mutual concern. [Arms sales] [China confrontation]
• Can Bo Xilai Be China’s Comeback Kid?
  By Bruce Einhorn August 23, 2013 Bo during his bribery and abuse-of-power trial at Jinan Intermediate People’s Court in Jinan, China, on Aug. 22, 2013 Has China’s show trial gone off-script? That seemed to be the case yesterday, when the court hearing Bo Xilai’s testimony posted real-time microblog accounts of the trial of the disgraced former Politburo member and party boss of Chongqing. Bo, the privileged son of one of Mao’s comrades from the early days of the Communist revolution, was supposed to admit to his alleged crimes, including abuse of power and accepting millions of dollars in bribes. “Even if the trial were public, we would witness no courtroom drama,” China expert Minxin Pei wrote on Bloomberg View early this month. “Bo, who hasn’t appeared in public since March 2012, will almost certainly be presented as a broken and penitent man,” predicted Pei, a professor at Claremont McKenna College. Instead, Bo on Thursday denied the charges and dismissed the evidence against him. After his wife, Gu Kailai, already convicted in an earlier trial, testified about her role in funneling bribes to him, Bo called her testimony “laughable.” [Bo Xilai] [Media]
• Bo trial exposes lavish world of China elite
  By Jamil Anderlini in Jinan ©Ng Han Guan/AP For the past two days China has been transfixed by a political drama that reads like the OJ Simpson trial and the life of Paris Hilton rolled into one. As Bo Xilai, the “princeling” former member of China’s elite 25-member politburo, appeared in court for a second day on Friday the world was treated to titillating revelations, particularly detailing the lavish lifestyle of his son and wife, thanks to online transcripts released by the court. The ruling Communist party and Mr Bo’s political enemies are clearly hoping the excruciating public airing of corruption will demolish the fallen politician’s credibility and build faith in the party’s efforts to stamp out official malfeasance. But the litany of excess and privilege may serve instead to alert the masses to just how normal and easy it is for China’s unelected, authoritarian political elite to transform their power into obscene wealth. “According to Chinese law, corruption involving Rmb100,000 can lead to a sentence of 10 years or more. But if that is really enforced then virtually all cadres above the grass-roots level would have to go to jail,” says Han Deqiang, a former strident supporter of Bo Xilai and co-founder of Utopia, a leftist activist website. In court on Thursday and Friday, Mr Bo argued vehemently at times in his defence but he also seemed to scoff at some of the charges levelled against him and suggest the amounts involved – totalling several million dollars – were trifling for a man of his power and influence [Bo Xilai]
• China and the norms of trade
  August 19th, 2013 Author: Peter Drysdale, Editor, East Asia Forum China’s accession to the WTO in 2001 entrenched the extraordinary benefits that were already accruing to both the Chinese economy and its international trading partners through its large scale liberalisation of trade on the long march towards admission to the world body. [WTO] [F&E] [Sanctions] [Myopia]
• Did China really ban rare earth metals exports to Japan?
  August 18th, 2013 Authors: Amy King and Shiro Armstrong, ANU In the aftermath of an East China Sea collision between a Chinese trawler and the Japanese coast guard in September 2010, tensions flared between Japan and China. In this photo taken on 6 July 2010, workers use machinery to dig at a rare earth mine in Baiyunebo mining district of Baotou. (Photo: AAP) The Chinese trawler captain was arrested but eventually let go after what appeared like political intervention from the Japanese government. It was also widely reported that there was a stop in Chinese exports of rare earth metals to Japan. As with most issues around the Senkaku/Diaoyu islands, few looked good. The ban of rare earths exports is now commonly cited as an example of Chinese policy-makers using economic levers for geopolitical purposes. For instance, a report by the International Crisis Group stated that China ‘reportedly suspended shipments of rare earth metals’ in response to the ship captain’s arrest, and that ‘many Japanese analysts remain convinced that the Chinese government had tailored the export restriction to punish Japan’. Paul Krugman in the New York Times even described this as clear evidence that the Chinese government was ‘willing to wage economic warfare on the slightest provocation’. But did the rare earth metals embargo actually take place? [Sanctions] [Myopia] [China bashing]
• The War over War with China
  Elbridge Colby August 15, 2013 In his article, “Sorry, AirSea Battle is no Strategy,” T.X. Hammes offers a detailed counterargument to my initial article defending the Pentagon’s AirSea Battle (ASB) and related endeavors, “Don’t Sweat AirSea Battle.” While Colonel Hammes and I differ on many points, we are in full agreement that the issues surrounding ASB deserve a full-throated debate. The American people should know and, to the extent possible, influence the shaping of perhaps the most important U.S. military-doctrinal development of recent decades, one with the most serious potential implications. In his article, Hammes offers a spirited defense of his Offshore Control strategy. I tried to address many of his arguments for it in my initial article and so will not rehash the points here. I urge interested readers to review my arguments there and make their own judgments. I will focus here on issues Hammes raised in his rebuttal that appear to me to be new or especially requiring attention. [F&E] [Conflict] [AirSea Battle]
• The Korean War and Sino–North Korean Friendship
  Heonik Kwon The relationship between China and North Korea is a subject that attracts much discussion and speculation in today’s policy circles and media. The history of Sino–North Korean friendship is typically traced to the time of the Korean War (1950–1953), although in North Korea it tends to go further back, to the colonial period. The texture of this international friendship has been changing recently. Some Chinese leaders state that China’s friendship with North Korea is no longer a special one and that the two countries have, or should have, a “normal” interstate relationship—respecting mutual interests as well as certain international norms—rather than one that is historically determined and unchanging. In North Korea, by contrast, there has been renewed interest in reinventing its relationship with China as a historically constituted and durable friendship. This essay explores North Korea’s recent efforts to present its relationship with China as a special, extraordinary, revolutionary friendship. It will focus on how the making of this special friendship draws upon a set of powerful ideas and metaphors of kinship and consanguinity. First, however, a few words on kinship and friendship concepts. [Korean War] [China NK]
• Lee Kuan Yew: Economic ties push reunification
  By Li Shen China.org.cn, August 14, 2013 Former Prime Minister of Singapore Lee Kuan Yew has proposed in a new book that the Mainland and Taiwan will be reunited through economic integration. Lee, who will celebrate his 90th birthday next month, launched his new book "One Man's View of the World" at the presidential palace in Singapore on Aug. 6. In the book, he expounds his views on the futures of major powers and regions of the world. [Straits]
• Thoughts on China’s National Interests
  Zhang Tuosheng, "Thoughts on China’s National Interests", NAPSNet Special Reports, August 13, 2013, This is the last report in a three part series from Professor Zhang Tuosheng of the China Foundation for International Strategic Studies in Beijing, China. The general progression of the series is: 1) suggestions for constructing a new type of great power relationship (between the U.S. and China); 2) identifying challenges, opportunities and strategies in the basic security environment surrounding China as perceived by a Chinese strategist; culminating in 3) thoughts on China’s national interests to provide context and identifying common ground for future discussions. In this final report, Zhang Tuosheng discusses China’s national interests, especially China’s core interests as articulated in the 2011 “China’s Peaceful Development” White Paper and how China might better safeguard those interests through strengthening China’s policy options and orientation. Zhang Tuosheng is the Director of Research and Senior Fellow at the China Foundation for International and Strategic Studies (CFISS) and also the director of CFISS Academic Committee. [F&E]
• Is China a challenge to the existing international order?
  Jiangnan Zhu 6 August 2013 What does a rising China mean to the world? While some countries take China as a salient threat, others regard it as their role model for development and governance. Jiangnan Zhu responds to Xiaoyu Pu. "Can China be a normative power in the international order?" Dr. Xiaoyu Pu raises this interesting question, which probably would have sounded far-fetched not long ago. In the past few decades, China seemed consumed with domestic economic development. In terms of foreign policies, China emphasized sovereignty and non-interference, and seemed not to care very much about being a normative power in the international arena. However, a rapid economic development has won China several new titles, such as "the China model", "ascending dragon", and even "the China threat". At the same time, China has become more confident and no longer shies away from debates on a range of international issues, such as human rights and in recent years, disputes over territory. [China rising] [Hegemony]
• China's Hopes for Bridging the Taiwan Strait
  Analysis August 7, 2013 More than six decades after Taiwan's estrangement from mainland China, the Taiwan Strait still represents the most physically formidable and symbolically inaccessible barrier to Beijing's objective of eventual reunification with the island. Over the course of its history, Taiwan switched hands from colonial occupiers including the Europeans and Japanese before becoming the prospective battleground between China and Taiwan in the second half of the 20th century. In recent years, military tensions between China and Taiwan have eased, and Beijing hopes that enhanced economic integration and the physical infrastructure it wants to build one day across the Taiwan Strait could bring the country a step closer to fulfilling a core geopolitical imperative by reuniting with the island. Analysis The South China Morning Post reported Aug. 5 that in its recently approved National Highway Network Plan for 2013-2030, the State Council included two highway projects linking Taiwan to the mainland. One involves the long-proposed Beijing-Taipei Expressway, which would start in Beijing and pass through Tianjin, Hebei, Shandong, Jiangsu, Anhui, Zhejiang and Fujian's Fuzhou before crossing the strait and reaching Taipei. Another inland route would start in Chengdu and pass through Guizhou, Hunan, Jiangxi and Fujian's Xiamen, and cross the Taipei-administered Kinmen archipelago before eventually ending at Kaohsiung in southern Taiwan. China's Proposed Cross-Strait Infrastructure The plan does not specify what kind of infrastructure -- a bridge or a tunnel, for example -- would be used to connect the mainland to Taiwan over the 180-kilometer (111-mile) strait, but since 1996, if not earlier, Beijing has publicly called for such infrastructure to be built. Read more: China's Hopes for Bridging the Taiwan Strait | Stratfor Follow us: @stratfor on Twitter | Stratfor on Facebook [Straits] [Logistics]
• War in Korea steeled PLA
  Updated: 2013-07-27 08:28 By Xu Yan (China Daily) Fighting in the limited and regional conflict kicked off the modernization process of Chinese army and made it stronger After fighting and talking for about three years, delegates of the People's Army of the Democratic People's Republic of Korea and the Chinese People's Volunteer Army signed the Korean War Armistice Agreement with US-led forces on July 27, 1953, with great confidence. Such self-confidence came not only because the Chinese leadership had resolutely shown its sword at a crucial moment, but also because the country's military strength had grown stronger, as the army stationed north of the 38th parallel had thoroughly remolded itself after going through a baptism of fire for years. The Korean War began on June 25, 1950, while the Chinese People's Volunteer Army crossed the Yalu River on October 19, 1950, which marked the beginning of the War to Resist US Aggression and Aid Korea. [Korean War] [PLA]
• Questioning China's real achievements
  Updated: 2013-08-12 02:48 By Andrew Moody (China Daily) Sinologist's views unleash debate about the country's place in the world and how far it will finally advance Is China emerging as a potential global superpower or just a partial one? The leading American Sinologist David Shambaugh makes the case in his new book, China Goes Global: The Partial Power, that despite being the world's second-largest economy, the country has a long way to go before it begins to shape the world in its own image. Even in the economic sphere, where China arguably had its most significant influence — accounting for 40 percent of global growth over the past two decades as well as being the largest exporter and holder of foreign exchange reserves — its global reach is overstated, according to Shambaugh. The American academic argues that while the image is of Chinese companies taking over businesses throughout Europe and the United States, China has only the fifth largest overseas direct investment in the world, behind even the Netherlands and a fifth of the size of that of the United States. [F&E]
• China Carrier Demo Module Highlights Surging Navy
  Share on email Share on twitter Share on facebook Share on digg | More Sharing ServicesMore Printer-friendly version Andrew S. Erickson, Gabe Collins | August 6, 2013 Shanghai’s Changxing Island Shipyard, already home to both conventional-submarine and civil production, now appears to be preparing to construct China’s first indigenous aircraft carrier. Internet and satellite photos have emerged of a hull module whose limited dimensions suggest that it represents a cost-controlled demonstration of relevant construction capabilities. Its configuration may foreshadow improvements on China’s first aircraft carrier, the refitted ex-Soviet Liaoning. While this particular module may never be incorporated directly into an initial homegrown flattop, whose construction is unlikely to be rushed, China’s naval shipbuilding has become proficient at modular construction. China’s military shipbuilders already use modular construction techniques at Jiangnan Shipyard for Type 052-series destroyers, at Hudong-Zhonghua Shipyard for the Type 071 amphibious vessel, and in at least four shipyards for the new Type 056 corvette—which itself was reportedly preceded by a demonstration module at Hudong-Zhonghua. Now these latest photos raise important questions: how capable is China’s military shipbuilding industry, and what can it actually deliver? This is part of a larger pattern in which outside analysts have repeatedly underestimated the speed and sophistication of China’s military-technological development. China’s political and economic capacity to invest financial and human capital in multiple new programs is unparalleled. [Seapower]
• What Asia Wants from the U.S.-China Great Power Relationship
  By Yanhong Xu Beijing put forward the idea of a “New Type of Great Power Relationship” to promote cooperation and build trust with Washington. This conceptualization is presented as a rebuttal to power transition theory, which predicts the inevitability of conflict between states quo and rising powers. China sees the growing possibility of confrontation with the United States, especially since the U.S. rebalance to Asia, and wants to show its desire for cooperation by declaring its alleged new great power relationship. The Sunnylands summit between President Xi and President Obama in early June signaled that they both want this bilateral relationship to avoid conflict and be cooperative. But can they succeed? Barriers to cooperation and trust-building reside not only in Beijing and Washington, but in the capitals of countries across the Asia-Pacific region. This new type of great power relationship can only be achieved by successfully reassuring other countries that both sides are truly committed to a cooperative approach. [China confrontation]
• China Drags Heels Over N.Korean Re-Defector
  The Chinese government is delaying the case of repeat North Korean defector Kim Kwang-ho and his family, who were arrested there on July 14. According to a diplomatic source on Sunday, Chinese authorities are questioning whether the Kims should to be treated as South Korean nationals since Kim re-defected to North Korea and was paraded before the press denouncing South Korea.
• Fear and Loathing at the China Daily
  When Mitch Moxley arrived in Beijing in 2007 to work for China's largest English-language daily, he discovered life in the Chinese media could be very strange indeed. Mitch Moxley Aug 3 2013, 9:00 AM ET Editor's note: Mitch Moxley arrived in Beijing in the spring of 2007 to work for the China Daily, the country's best-known English-language daily newspaper. While his stint at the paper lasted just one year, Moxley remained in China until 2013, publishing articles in The Atlantic, among other places. His memoir, Apologies to my Censor, was published by Harper Perennial last month. In this excerpt, Moxley describes the day-to-day work at the China Daily, which differed ... just a bit ... from what he expected. *** Ms. Feng's instructions for most of the stories I wrote for China Daily were straightforward: "Find out what Westerners think." It was clear early on that Pulitzer Prize-winning journalism would not be expected of me as a writer for China Daily, and before long, I owned the "What Westerners Think About Stuff" beat. Property prices, Chinese products, websites about China -- I was tasked to find out what foreigners thought about it all. It seemed the editors simply wanted me out of sight, out of mind, and that was fine with me. [Media] [China bashing]
• Containing or counterbalancing China
  August 4th, 2013 Author: Hugh White, ANU Robert Manning recently argued that America’s approach to China should not be called ‘containment’ but ‘counterbalancing’. This argument brings to mind the writings of Coral Bell, who had some wise things to say about the concept of containment back in 1968: I said earlier that containment was a strategy that has been mistaken for a policy. What I had in mind by this phrase is that to define a policy is to define an end, whereas to define a strategy is to define a means. President Barack Obama and Chinese President Xi Jinping wave as they walk at the Annenberg Retreat of the Sunnylands estate in Rancho Mirage, California. (Photo: AAP) This debate about names — whether ‘containment’ or ‘counterbalancing’ — soon gets tangled in arguments about what the names themselves mean, and seriously misses the point. By debating the strategy before we get clear on the policy, we put the means before the ends. What we need to do first is clarify the policy that lies behind these strategies. So let’s put the word ‘containment’ to one side and instead explore the key questions about the policy itself. The key questions are pretty simple: what is the aim of the current US policy towards China? What are its likely costs? Will it succeed? What if it fails? And what are the alternatives? [China confrontation] [F&E]
• With Pipeline, China’s Launches Burma Charm Offensive
  By Tyler Roney August 1, 2013 On Monday, the Sino-Myanmar natural gas pipeline began pumping to China, part of the Middle Kingdom’s drive to diversify its energy supplies, but, in light of recent diplomatic troubles, China is quick to shine a rosy light on this latest development. The Chinese state media charm offensive went into full swing. Xinhua described the opening ceremony as follows: "When torches flamed in the sky of Namkham Measuring Station of the Myanmar-China Gas Pipeline, a storm of applause and cheers broke out." Though six nations are involved in the funding of the project—including South Korea and India—the China National Petroleum Corporation (CNPC) holds a 50.9 percent stake, and both sides have reasons to be cautious. The nearly 800-kilometer natural gas pipeline (to be followed by an oil pipeline) will be responsible for six percent of China's gas needs, and–after the Myitsone Dam and Letpadaung Copper Mine–China is keen to be seen as a fair partner. [Pipeline]
• Africa's Big Brother Lives in Beijing
  Is Huawei wiring Africa for surveillance? Or just for money? BY JOHN REED | JULY 30, 2013 Chinese telecommunications giant Huawei may have been all-but-barred from doing business in the U.S. over allegations that it's basically an intelligence agency masquerading as a tech business. In Africa, however, Huawei is thriving. From Cairo to Johannesburg, the Chinese telecom has offices in 18 countries and has invested billions of dollars in building African communications networks since the late 1990s. The company's cheap cellular phones today dominate many of Africa's most important markets -- and that was before Huawei teamed up with Microsoft earlier this year to launch a low-cost smartphone on the continent. Just in the past few months, the firm closed a pair of telecommunications deals in Africa each worth more than $700 million, part of an African business that brings in more than $3.5 billion annually for the Chinese firm. According to Huawei's marketing materials, the projects are all part of a mission of "Enriching [African] Lives through Communication." But current and former U.S. officials -- as well as outside security analysts -- worry there could be another agenda behind Huawei's penetration into Africa. They suspect that the Chinese telecom could be wiring the continent for surveillance. [ICT] [Surveillance] [Africa] [Double standards]
• The Battle for Oil in Central Africa: Fighting Joseph Kony and the Lord’s Resistance Army or Confronting China?
  By Timothy Alexander Guzman Global Research, July 30, 2013 The Obama administration recently sent the highest ranking official to discuss its support for the Ugandan government’s involvement in various conflict zones in East Africa that includes Somalia, the Democratic Republic of Congo, South Sudan and Sudan and continue its effort to stop Joseph Kony and the Lord’s Resistance Army (LRA). Deputy Defense Secretary Ash Carter is the “highest-ranking DOD official ever to visit Uganda” according to the U.S. Department of Defense official website www.defense.gov press release. The report said that the agenda discussed between Carter and Ugandan political and military leaders was to confirm Washington’s commitment to the Ugandan military operations in the region: The visit gave him a chance to discuss a range of regional security challenges with Ugandan partners – including the conflicts in Somalia, Sudan and South Sudan, and the Democratic Republic of Congo – and ending the longstanding threat to civilians and to regional stability posed by Joseph Kony and the Lord’s Resistance Army, known as the LRA Is Washington sincere in its concern to stop the LRA from terrorizing East Africa or is it to counter China’s influence in the region? It is assumed that Washington’s goal is to capture or kill Joseph Kony and members of the LRA. AFRICOM’s propaganda is aimed at the African population to justify its presence. [Pretext]
• China sails through 'first island chain'
  China Daily, August 2, 2013 The Chinese navy has fulfilled its long-held dream of breaking through the "first island chain blockade", and its vessels have gained access to the Pacific Ocean through various waterways along the route, military observers said on Thursday. They made the remarks in interviews with China Daily to mark the 86th anniversary of the founding of the People's Liberation Army. "The Chinese navy has the capability to cut the first island chain into several pieces," said Du Wenlong, a senior researcher at the PLA's Academy of Military Science. "Now the chain is fragmented." The "first island chain" refers to the first major archipelagos off the East Asian continental mainland, including the Japanese archipelago, Ryukyu Islands, China's Taiwan and the northern Philippines. In the 1950s, Washington came to regard the chain as an important barrier to contain China and other communist countries. The United States and allied countries installed a strong military presence and advanced weapons at bases along the line. [China rising] [Seapower]
• Embracing changes in China's birth control policy
  By Liu Qiang China.org.cn, August 2, 2013 The "only child, two children policy" is expected to be adopted by the end of 2013 or early 2014, which means couples will be allowed to have two children if either parent is an only child, according to a source close to the National Health and Family Planning Commission of China. Furthermore, experts have revealed that a more "courageous" plan is in discussion, namely an unlimited two-child policy to be adopted in 2015 when China's 12th Five-Year Plan comes to an end. Professor Zhai Zhenwu, dean of the School of Sociology and Population Studies with Renmin University of China, said, "Though the ‘only child, two children' policy is to be started, details of the plan have yet to be worked out." Professor Zhai has proposed a "three step program" that has reportedly gained the support of many high-profile officials. According to his proposal, from 2011 onwards, northeast China and Zhejiang province were the first to be subjected to this new adaptation; then Beijing and Shanghai would follow suit. The third step, to be taken around 2015, would see all provinces in the nation adopt this new policy. Since the 1980s, China's population has been strictly subjected to the nation's one-child policy. It restricts urban couples to having only one child, while allowing two children when both parents are only children themselves. In the rural areas, couples are often permitted to have two children if the first child is a daughter, which is called the "one-and-half child policy." According to official data, before 2011, approximately 35.4 percent of China's population was subjected to a strict one-child limit, and 53.6 percent to the one-and-half child policy. 9.7 percent of Chinese couples, including ethnic groups and couples who are both only children themselves, were permitted to have two children. Only 1.3 percent -- mainly ethnic minorities of Tibetan and Xinjiang Uygur descent -- was allowed to have three or more children. [Demography]
• China Challenges, Opportunities and Strategies
  by Zhang Tuosheng July 30, 2013 This is the second in a three part series of articles from Professor Zhang Tuosheng of the China Foundation for International Strategic Studies in Beijing, China. The general progression of this series is: 1) suggestions for constructing a new type of great power relationship (between the U.S. and China); 2) identifying challenges, opportunities and strategies in the basic security environment surrounding China as perceived by a Chinese strategist; culminating in 3) thoughts on China’s national interests providing context and identifying common ground for future discussions. In this Policy Forum, Zhang Tuosheng suggests there have been some major changes from China’s view point in the international and domestic environment from 2008-2012. The challenges to China's security environment reached a high point in 2012. The relationship between China and the outside world has entered a period of heightened friction. However, this should not shake the basic judgment that this is China's period of strategic opportunities. China's rise will continue thanks to three fundamentally unchanged factors: favorable changes in the international situation, reform and opening up and sticking to the path of peaceful development. To turn challenges into opportunities, the author proposes adhering to effective, peaceful foreign policy and precisely defined core interests, in order to build new relations among major powers such as the three major breakthrough, strengthen high-level decision-making mechanisms for policy coordination, strategic planning and enhance crisis management He also makes nine specific policy recommendations. Zhang Tuosheng is the Director of Research and Senior Fellow at the China Foundation for International and Strategic Studies (CFISS) and also the director of CFISS Academic Committee. [F&E]
• Beyond choosing between China and the US
  July 23rd, 2013 Author: Satu Limaye, East–West Center The current ‘balance of relations’ in the Asia Pacific is at risk if the United States and China pressure countries in the region to ‘choose’ between them. U.S. Navy aircraft carrier USS Abraham Lincoln (CVN 72) transits through the Pacific Ocean, December 2011. (Photo: AAP) The two-day summit between President Obama and Xi Jinping in California on 8–9 June, while not a milestone in US–China relations, inadvertently confirmed the prevailing ‘balance of relations’ in the Asia Pacific: that US relations with China and Asia are more favourable to regional stability and prosperity than relations between China and Asia or within Asia alone. The threats to this balance do not come from the deterioration of US–China relations or purported US economic decline as many would expect, but from the perceived pressure placed on countries within the region to ‘choose’ between Washington and Beijing. On the other side of the coin, smaller countries in the region, notwithstanding their weaker bargaining power, have made concerted efforts to get Washington or Beijing to ‘choose’ them. Up until now, regional countries have made reasonable efforts to get the most from both — and have succeeded admirably. [Allegiance]

• China, Russia boost ties with joint drills
  Xinhua, July 27, 2013 China and Russia will start a joint counter-terrorism drill, known as Peace Mission 2013, on Saturday, less than one month after the two sides completed their largest-ever naval drill in the Sea of Japan. China and Russia will start a joint counter-terrorism drill, known as Peace Mission 2013, on Saturday. [Li Xianghui/Xinhua] Observers said this is the first time that the two countries have conducted so many drills in a short period of time and sent military forces from bases that are geographically so close to one another, indicating a high level of mutual trust. The drill, which involves 1,500 soldiers, will be held in Chelyabinsk, in Russia's Ural Mountains region, from Saturday until Aug 15. It will be the ninth time that the two countries have participated in bilateral or multilateral exercises since 2003, and the move comes two weeks after they held the Joint Sea 2013 naval drill in Peter the Great Gulf near Russia's Far East port city of Vladivostok. [Russia China] [NCW]
• Chinese Firms Conquer Global 500 as Korea Stagnates
  Chinese companies have made massive strides on Fortune's Global 500 list, which is measured based on revenue, but the number of Korean firms has been almost unchanged for years. Fourteen Korean companies including Samsung Electronics and Hyundai Motor made the annual ranking of the world's top 500 companies released early this month by Fortune magazine. In 2009, there were also 14, in 2010 10, the following year 14 again, and last year 13. But this year's list includes 89 Chinese companies, led by Sinopec Group and China National Petroleum, which ranked fourth and fifth. In 2009, there were only 37, and their number has grown almost 20 percent every year. The number of American companies dwindled to 132 this year from 140 in 2009, while the number of Japanese firms declined about 10 percent from 68 to 62 over the same period. Fortune expects that China will dominate the Global 500 around 2015. [Decline] [China competition]
• DPRK leader meets Chinese VP
  China.org.cn, July 26, 2013 Top leader of the Democratic People's Republic of Korea (DPRK) Kim Jong Un met Thursday with visiting Chinese Vice-President Li Yuanchao to discuss relations between their two countries. Li came to Pyongyang to attend activities marking the 60th anniversary of the Korea War Armistice. During the meeting with Kim, Li said the anniversary was an opportunity to remember the outstanding sons and daughters of China and the DPRK who sacrificed their lives to defend their homelands. "Reviewing history, we deeply feel that today's peace is hard earned and should be cherished doubly," said Li. The China-DPRK relationship was entering a new period that built on the past and prepared for the future, Li said, adding China was willing to work with the DPRK to strengthen mutual trust and communications, expand exchanges and cooperation in various fields, and advance bilateral ties. [China NK]
• Bo Xilai charged with bribery, embezzlement, power abuse
  Xinhua, July 25, 2013 Bo Xilai, former Communist Party of China (CPC) chief of Chongqing Municipality, has been charged with taking bribes, embezzlement and abuse of power, according to Jinan City People's Procuratorate in east China's Shandong Province. Bo's indictment was delivered to the Jinan City Intermediate People's Court on Thursday. Bo took the advantage of his position as a civil servant to seek gains for others, as well as accepted bribes in the form of large amounts of money and property, according to the indictment. He also embezzled a large amount of public money and abused his power, seriously harming the interests of the state and people, the document said. [Bo Xilai]
• Services pact boosts Taiwan banking business
  Services pact boosts Taiwan banking businessTaiwan’s banking sector will receive a major boost in revenue from the cross-strait services pact. (Chang Su-ching) •Publication Date:07/23/2013 •Source: Commercial Times The recently signed Cross-Strait Trade in Services Agreement has four main advantages that will substantially boost Taiwan’s financial sector, ROC Deputy Minister of Finance Tseng Ming-chung, who doubles as chairman of Taiwan Financial Holdings Co., said July 22. ROC banks will be able to serve more Taiwan businesses operating in mainland China, set up branches in villages and townships, establish service units in Fujian province, and handle mainland Chinese investment in Taiwan’s bond, stock and fund markets, Tseng said at a forum on the agreement organized by the Bank of Taiwan. [Straits] [FTA] [Services]
• Common ground and preserving differences
  Xiaoyu Pu 24 July 2013 Xiaoyu Pu responds to strong arguments from David Schlesinger and Hugh Shapiro who have both challenged Pu's views on whether China could one day be a normative power. The responses from David Schlesinger and Hugh Shapiro to my essay on China’s human rights diplomacy are especially stimulating and insightful. While sharing much common ground with them, I take this chance to clarify my argument. [China rising] [F&E]
• Chinese vice president to visit DPRK
  Xinhua, July 24, 2013 Chinese Vice President Li Yuanchao will head a Chinese delegation to visit the Democratic People's Republic of Korea (DPRK) from July 25 to 28 at the invitation of the DPRK side. Chinese Foreign Ministry spokesman Hong Lei made the announcement in Beijing Wednesday. According to the spokesman , during the visit, Li, also a member of the Political Bureau of the Central Committee of the Communist Party of China, will attend activities in commemoration of the 60th anniversary for the truce of the Korea War. [China NK] [AA]
• Mainland, Taiwan work on joint language report
  Xinhua, July 24, 2013 The Chinese mainland and Taiwan are to jointly publish a report on their respective use of the Chinese language and its differences and evolution across the Taiwan Strait, the Ministry of Education said in a statement on Tuesday. The two sides have agreed to improve the linkage of websites and network resource sharing, enhance the cross-Strait language exchange mechanism, and strengthen cooperation between young people on joint promotion of Chinese-language classic works, the statement said, adding that all these initiatives would be completed within 2013. Mainland-Taiwan relations entered a tense era after the Kuomintang (KMT) lost a civil war with the Communist Party of China (CPC) and fled to Taiwan in the late 1940s. But the relations warmed up after the KMT, led by a new generation of leaders, returned to power in a 2008 election, ending eight years of rule by the pro-independence Democratic Progressive Party. More than 90 percent of expressions used by the two sides are identical, surveys show. But decades of estrangement have caused differences across the Strait in the use of the Chinese language. With the deepening of cross-Strait cultural exchanges, the two sides have jointly worked on compiling of Chinese language reference books, including those of technical terms, and opened a "Chinese Language Repository" website, the statement said. [Straits]
• A revealing map of how the world views China vs. the U.S.
  By Max Fisher, Published: July 22 at 6:30 amE-mail the writer A new Pew survey of people in 39 countries from around the world finds that people tend to have a more favorable view of the United States than they do of China, but with wide variations across regions and countries. It’s a compelling dataset, a sign of shifting global attitudes toward two of the world’s most powerful countries and a glimpse into the complex world of public opinion toward China and the United States. [Public opinion] [Image]
• New great power relationship between China and US
  by Zhang Tuosheng July 23, 2013 This is the first in a three part series of articles from Professor Zhang Tuosheng of the China Foundation for International Strategic Studies in Beijing, China. The general progression of this series is: 1) suggestions for constructing a new type of great power relationship (between the U.S. and China); 2) identifying challenges, opportunities and strategies in the basic security environment surrounding China as perceived by a Chinese strategist; culminating in 3) thoughts on China’s national interests to provide context and identifying common ground for future discussions. In his inaugural Policy Forum, Zhang Tuosheng deepens the understanding and discussions of understanding, from a Chinese point of view, the new type of Great Power Relationship. He does this in five steps: 1) the basics of the proposal; 2) what’s necessary and what’s possible in this new relationship; 3) the basic characteristics of a new relationship; 4) the obstacles and difficulties which must be overcome; and finally 5) paths and means to achieve the new relationship including 12 specific suggestions. Zhang Tuosheng is the Director of Research and Senior Fellow at the China Foundation for International and Strategic Studies (CFISS) and also the director of CFISS Academic Committee. [US China] [China global strategy]
• Recognizing the End of the Chinese Economic Miracle
  Geopolitical Weekly Tuesday, July 23, 2013 - 04:08 By George Friedman Major shifts underway in the Chinese economy that Stratfor has forecast and discussed for years have now drawn the attention of the mainstream media. Many have asked when China would find itself in an economic crisis, to which we have answered that China has been there for awhile -- something not widely recognized outside China, and particularly not in the United States. A crisis can exist before it is recognized. The admission that a crisis exists is a critical moment, because this is when most others start to change their behavior in reaction to the crisis. The question we had been asking was when the Chinese economic crisis would finally become an accepted fact, thus changing the global dynamic. [China problems]
• Trading places?
  By Yan Xuetong China.org.cn, July 23, 2013 In 2023 the world will witness something which has not been seen since the disintegration of the Soviet Union - there will once again be two superpowers in the world instead of only one as China joins the exclusive global superpower club. China's comprehensive strength will, however, continue to lag behind that of the U.S. which means that the U.S. will still be the world's leading superpower. Despite the fact that the U.S. cannot prevent China's rise, it will do whatever it can to hinder China's development. The comprehensive strength of a country is determined by four factors: Political strength, military strength, economical strength and cultural strength. Political strength can be categorized as operational strength while other three are resources. Comprehensive strength is determined by how a country uses its resources. [F&E]
• Korea losing 'kimchi sovereignty' to China
  By Park Si-soo Korea is rapidly losing its “kimchi sovereignty” to China. The country's exports of kimchi to Japan have plunged this year, with China taking up the slack. More alarming is the fact that Beijing has “banned” the import of kimchi from Seoul by radically toughening regulations on imported food. No domestic kimchi maker has sold its product into the Chinese market so far this year, according to the Korea Agro-Fisheries and Food Trade Corporation (aT). [China competition]
• Forecasting China
  McKinsey’s Gordon Orr has been publishing predictions about China for nearly five years. Join him for a review of the good guesses, major misses, and lessons he’s learned from both. July 2013 | byGordon Orr I started writing lists of what might happen in China seven or eight years ago. At first, they were just for me—a way of organizing my own thinking in early January for the 12 months ahead. Then I began to post some of the more interesting ideas on the blog I write for McKinsey colleagues. Four years ago, when my publishing colleagues suggested I share my predictions externally—first in English, then in English and Chinese—the stakes rose significantly. This development not only brought the forecasts to the attention of thousands of users on a McKinsey site but also made it possible for social and traditional media to amplify the message to hundreds of thousands of people (and, in the case of one notorious forecast, to several million of them). Better data, more coherence, greater sensitivity to the possible implications of what I was saying, and thorough editing were needed. In the annual forecasts, I have tried to strike a balance among the following:
• Luo Yuan’s US-style military report, and difficulties for Dai Xu
  Posted: July 20, 2013 Here is an actual weblog post — a log of what one reads on the internet — rather than the usual rambling speculative essay. Luo Yuan’s think tank, the “China Strategy Culture Promotion Association”, yesterday released separate reports on the “military power of the US and Japan”. Curiously, given it’s supposedly an non-governmental think tank (????), the Global Times quoted China Foreign Affairs University’s Su Hao calling the reports “strong and timely responses to the inaccurate remarks in the US annual report on China’s military and the Japanese Ministry of Defense’s recent white paper” (emphasis added). [South China Sea] [Think tank]
• Yuan influence on the rise worldwide
  China Daily, July 22, 2013 Although the money markets have gone into a tizzy recently, there have been some unrelated developments that clearly underscore the growing global influence of China's currency, the yuan also known as renminbi (RMB). Indications that the yuan is well on its way to becoming an "international" currency heightened after important currency trading centers such as Paris, Luxembourg, Frankfurt, Sydney and Dubai expressed interest in becoming offshore yuan-trading centers. Major money markets, including Hong Kong, Taipei, Singapore and London, are already part of the lucrative offshore yuan-trading club. "There is no doubt that the renminbi is gaining international recognition and that there is demand for it outside the Chinese mainland," says Ravi Menon, managing director of the Monetary Authority of Singapore. [RMB] [Reserve]
• 'Seoul must seek greater Chinese engagement'
  By Chung Min-uck 2013-07-19 17:02 Michael Green Michael Green, an expert on North Korea, said Friday that President Park Geun-hye’s diplomacy for the next six months will affect whether China will join South Korea and the U.S. to pressure North Korea to scrap its nuclear programs. In the first issue of the Asan Forum, an online journal newly launched by the Asan Institute for Policy Studies, Green of the Washington-based Center for Strategic and International Studies (CSIS) wrote in his special commentary, “The government of Park Geun-hye thinks change in China’s role on the peninsula is possible,” adding that the “diplomacy of the coming six months may tell whether that is so.” [MISCOM] [China hope]
• America’s AirSea Battle vs. China’s A2/AD: Who Wins?
  By Harry Kazianis July 19, 2013 A recent query from a colleague asked a very simple question: If America’s AirSea Battle (ASB) was ever called into service against China’s anti-access/area denial strategy (A2/AD), who wins? Yikes. The simple answer, without making loyal Diplomat readers suffer through a 10,000 word academic slog is… no one. But first, allow me to back track a bit. One key aspect of both ideas that gets lost in the mix is in what situations conflict could occur and the possible escalatory nature of such a conflict. When it comes to a potential showdown between ASB and A2/AD, the devil is truly in the details. While pundits love asking and analyzing what weapons could be deployed and how they would be used, the situation in which such weapons come into play and what happens next is equally important. Context in a situation like this matters. Let us consider for a moment the possible flashpoints in which U.S. and Chinese forces could clash. The two that come to mind would be some sort of escalatory crisis over the Senkaku/Diaoyu Islands or a situation involving territorial tensions in the South China Sea. [Conflict] [Diaoyu] [AirSea Battle] [A2/AD]
• Dream of the Red Future: Will the Chinese Dream Become an Enduring Classic?
  July 18, 2013 - 12:00am | admin By Nicholas Dynon In a scene in Cao Xueqin’s epic 18th century classic, Dream of the Red Chamber, protagonist Baoyu drifts into a dream while in a courtly chamber. His unconscious journey takes him to the “land of illusion,” where the fairy, named Disenchantment, reveals the fates of several characters close to him. John Minford, professor of Chinese at the Australian National University, suggests the underlying theme of this great work is one of “seeing through the Red Dust,” beyond the illusion of earthly “reality.” Richard J. Smith of Rice University notes its theme of the “interpenetration of reality and illusion,” and of true and false producing one another. Ultimately, the work is semi-autobiographical, and reflects lost dreams, particularly the waning fortunes of Cao Xueqin’s own family and, by extension, that of the Qing dynasty. [China vision]
• Tokyo's 'big leap' aimed at China
  China Daily, July 20, 2013 Japan took a "big leap" in using its defense forces to target China last year as the United States at the same time listed China as its greatest potential security challenge, according to a report from a Chinese think tank on Friday. Observers said the military tension arose from territorial disputes, unease over China's rapid growth and attempts to use China as a scapegoat to justify a military buildup by Tokyo and Washington. Tokyo's 'big leap' aimed at China [Photo/China Daily] The annual report on Japanese military power, released by the China Strategic Culture Promotion Association, said two of the most eye-catching changes in Japan's defense forces in 2012 were Tokyo's efforts to normalize its defense power and to use it against China. [Japanese remilitarisation] [China confrontation]
• Most Koreans, Japanese Worry About China's Military Buildup
  More than 90 percent of Koreans and Japanese believe that China's military buildup will have adverse impact on their countries, a survey suggests. The Pew Research Center, a Washington think tank, polled 37,653 people in 39 countries in March and April asking, "Is China's growing military power a good or bad thing for our country?" Some 91 percent of Koreans and 96 percent of Japanese said a bad thing. Only six percent of Koreans and two percent of Japanese said it is a good thing. In the same poll in 2010, 86 percent of Koreans and 88 percent of Japanese gave the same answer. Asked what opinion they have of China, 46 percent of Koreans answered either very or somewhat favorable, while 50 percent replied somewhat or very unfavorable. But in Japan, only 5 percent said very or somewhat favorable while a whopping 93 percent picked somewhat or very unfavorable. The Pew Research Center attributed the results to heightened tensions between China and Japan over the recent years. Japanese take territorial disputes with China very seriously. [Public opinion] [China confrontation]
• Ma apologizes to White Terror victims
  ROC President Ma Ying-jeou reaffirms the government’s determination to obtain justice for victims of the White Terror period during an address July 15 at a memorial in Taipei City. (CNA) •Publication Date:07/16/2013 •Source: Taiwan Today ROC President Ma Ying-jeou conveyed his condolences to victims of the White Terror era at a memorial in Taipei City July 15, vowing to continue promoting human rights and judicial reform. During the 1950s, political injustice and improper trials took place in Taiwan, Ma said. “As ROC president, I offer my sincere apologies to families of the victims on behalf of the government. “We must put ourselves in the shoes of the families, uncover the truth and prevent similar incidents from happening again so as to heal the wounds of history.”
• How should we understand Sino-U.S. relations in the context of a new ‘Great Power Relationship’.
  by Chen Jimin July 16, 2013 In this Policy Forum, Chen Jimin, rhetorically asks, “how should we understand Sino-U.S. relations in the context of a new ‘Great Power Relationship’. First he provides a way of understanding the characteristics of the new relationship and provides some basic principles defining the new relationship. [in Chinese]
• U.S., China Strategic and Economic Dialogue Criticized
  U.S.-China dialogue, exploited by Beijing for propaganda, produces no substantive results BY: Bill Gertz July 16, 2013 5:00 am The Obama administration concluded its fifth round of high-level talks with China last week amid much fanfare, but as with past dialogue meetings, the “strategic” talks produced no substantive results. China has used the so-called Strategic and Economic Dialogue talks with the United States to enhance its international standing, analysts say. The Obama administration, for its part, has sought to use the talks—unsuccessfully so far—to try to convince the Chinese to join its agenda on issues ranging from joint pollution controls to curbs on workplace cigarette smoking. A close inspection of the topics discussed, along with comments made by senior administration officials involved in the talks, indicates no breakthroughs were made on issues such as China’s cyber attacks on U.S. businesses or the nuclear programs of Iran and North Korea. Instead, the talks appeared to focus heavily on the issue of climate change, the environment, and other issues that the Chinese in the past have shown no interest in pursuing in any substantive way. [US China] [Conservative]
• The end of a temporary advantage
  Hugh Shapiro 16 July 2013 Western powers are indeed trying to tell China how to behave, both implicitly and explicitly, but the idea of the West needs rethinking. A response to Xiaoyo Pu in the 'emerging powers and human rights ' debate. Dr. Pu’s essay asks: “In what way can China act as a normative power,” given that “the West” and “Western powers” are always “attempting to tell (and to teach) China how to behave”? At first blush, the idea that anyone or anything can tell China what to do, can push China around, telling it how to act, appears patently false. However, upon reflection, Dr. Pu is making an important point. Western powers are indeed trying to tell China how to behave, both implicitly and explicitly. In a broad, implicit sense, the international order as it exists today is the creation of Euro-American power, of its science, technology, political-military ambitions, of its cultural practice. [Decline] [Softpower]
• Can China be a normative power?
  Xiaoyu Pu 20 June 2013 Until now, the west has been attempting to tell China how to behave when it comes to human rights. But things are changing. Increasingly, China is engaging in international debate over rights. Does China aim to redefine the norms? [China rising] [Softpower]
• Park, Xi still differ over details on NK policy
  By Chung Min-uck After all the media glare and scrutiny of President Park Geun-hye’s summit meeting with Chinese President Xi Jinping late last month, experts point out three fundamental differences that exist between the two leaders, concerning their policies toward North Korea. “Park, Xi and Chinese Premier Li Keqiang strongly emphasized ‘denuclearization’ during the summit,” said Moon Chung-in, a political science professor at Yonsei University in Seoul, speaking at a seminar hosted by the East Asia Foundation (EAF), a non-profit organization, last week. “But Xi and Li emphasized denuclearization of ‘Korean Peninsula,’ whereas, Park emphasized denuclearization of ‘North Korea.’” China objected to using the term ‘denuclearization of North Korea’ in the joint communique adopted after the Korea-China summit, factoring in the relationship with its Cold War ally, Pyongyang, which is on its worst terms with Seoul. Instead, the two sides mentioned ‘denuclearization of Korean Peninsula’ in the communique. [Park_Xi13]
• N.Korea Asks China to Hire Kaesong Workers
  North Korea has asked China to hire workers who have lost their jobs with the closure of the Kaesong Industrial Complex, the Yomiuri Shimbun reported Friday. The daily said senior North Korean diplomat Kim Kye-gwan on a visit to Dalian on June 19-20 asked Chinese officials to hire Kaesong workers for the Hwanggumpyong and Wihwa Island economic special zones in the border area. China’s response is not known. In May, the Asahi Shimbun also reported the North asked China to employ workers from the Kaesong industrial park. "It's a likely story but we haven't confirmed it," a Unification Ministry official said. "Rumor has it that workers from Kaesong have already signed labor contracts with China." [SEZ] [Hwanggumpyong]
• Map: China's West-East Electricity Transfer Project
  By David Tyler Gibson China map west east electricity transfer project The Wilson Center’s China Environment Forum is proud to announce that we are launching our first interactive infographic: a map of China’s West-East Electricity Transfer Project. The map underscores China’s energy and water imbalances and the looming choke point China faces in terms of water, food, and energy security. The map also illustrates how consumer goods made in China’s factories along its eastern coast are powered by coal and hydropower in the country’s western provinces. [Electricity]
• 'Contrite' Defectors Flee N.Korea Again
  North Korean defector Kim Kwang-ho and his family, who returned to the North and were paraded before the press accusing South Korea of luring them out of the reclusive country, have been arrested in China after fleeing again, TV Chosun reported.
• Analysis: Sting in dragon's tail for foreign companies in China
  By Sujata Rao LONDON | Sun Jul 14, 2013 11:24am EDT (Reuters) - China's vast market for foreign goods and services, once seen by global companies as a modern-day El Dorado, is becoming a weight around their necks as its growth slows. The rise of the Chinese economic "dragon" over the last two decades has transformed international business. But now the country is in the grip of a slowdown due to a slump in exports and banking sector excesses, as recent data has shown. That has led fund managers worldwide to re-assess their investments in companies with a focus on the world's No.2 economy. "Anything China-sensitive is performing poorly and the trend will not go away because there is no sign of growth recovery," said Maarten-Jan Bakkum, investment strategist at ING Investment Management, which has cut its holdings of China-exposed stocks. Markets are already braced for slower commodity demand. But Beijing's recent moves, from an anti-corruption drive that has dented luxury demand to a crackdown on shadow banking, will hurt domestic demand too, Bakkum said. [Domestic demand]
• RMB status moving closer to USD and Euro
  CRI, July 14, 2013 A white paper by a major Chinese bank revealed on Friday that thirty percent of its foreign interviewees believe that the future status of RMB will be close to that of the US dollar and the Euro. A worker counts Chinese currency Renminbi banknotes at a bank in Tancheng County of Linyi City, east China's Shandong Province. [Photo: Xinhua] The white paper was carried out by the Bank of China on its cross-border RMB business. It is based on the results of 3000 questionnaires from both its domestic and foreign clients which covered the majority of countries and regions trading with China. The use of RMB in cross-border trade, representing 11 percent of all transactions at the end of May, witnessed a sharp increase since the pilot cross-border RMB settlement was launched in July, 2009. The volume of cross-border RMB settlement in the Bank of China amounted to 1.6 trillion yuan during the first half of this year. [RMB] [Reserve]
• Nuclear facility project cancelled after protests
  By Gong Jie0 Comment(s)Print E-mail China.org.cn, July 13, 2013 A planned nuclear fuel processing project in Guangdong province in South China has been canceled following local residents' opposition, local authorities said Saturday. The 229-hectare Longwan Industrial Park project, located in Zhishan township in the city of Heshan, will feature facilities for uranium conversion, enrichment and manufacturing of nuclear fuel equipment, involving a total investment of 37 billion yuan (6 bln U.S. dollars). The project is the first industrial park planned in southeast China for nuclear fuel production. It will supply to nuclear power plants in Guangdong and neighboring Fujian Province, with a designed capacity of 1,000 tonnes of uranium in 2020. However, the protestors are upset about the project as the planned site was only 30 km away from the city. "We don't need such projects to boost the economy," said a resident surnamed Liu in the crowd of protestors. Protesters "took a walk" through Jiangmen on Firday, holding banners and wearing T-shirts with slogans calling against the planned construction of the facility. "The Heshan government respects the public's opinion and will not apply for approval for the project," Mayor of Heshan Wu Yuxiong said. [Democracy]
• Reception Given in China Reception Marks Anniversary of DPRK-China Treaty
  Beijing, July 11 (KCNA) -- The DPRK embassy in Beijing hosted a reception on Thursday to celebrate the 52nd anniversary of the DPRK-China Treaty of Friendship, Cooperation and Mutual Assistance. Present there on invitation were Li Haifeng, vice-chairman of the National Committee of the Chinese People's Political Consultative Conference, Liu Zhenmin, vice-minister of Foreign Affairs, the vice- minister of Culture, Wu Donghe, chairman of the China-Korea Friendship Association, Yang Yanyi, assistant to the head of the International Liaison Department of the Central Committee of the Communist Party of China, and other officials concerned. Present there were Ji Jae Ryong, DPRK ambassador to China, and staff members of his embassy. The DPRK ambassador recalled that leader Kim Jong Il put on a new high stage the traditional relations of friendship between DPRK and China which President Kim Il Sung provided and developed together with Mao Zedong and Zhou Enlai. [China NK]
• NSA’s Snowden review focuses on possible access to China espionage files, officials say
  By Ellen Nakashima, Published: July 12 E-mail the writer A National Security Agency internal review of damage caused by the former contractor Edward Snowden has focused on a particular area of concern: the possibility that he gained access to sensitive files that outline espionage operations against Chinese leaders and other critical targets, according to people familiar with aspects of the assessment. The possibility that intelligence about foreign targets might be made public has stirred anxiety about the potential to compromise the agency’s overseas collection efforts. U.S. officials fear that further revelations could disclose specific intelligence-gathering methods or enable foreign governments to deduce their own vulnerabilities. Latest on this story Edward Snowden, NSA leaker, will seek asylum in Russia Welcome to the transit zone: Photos from Snowden's meeting Snowden, in new statement: I had 'power to change people's fates' Russia's human rights commissioner: Snowden considers himself a patriot The big story Officials fear that Snowden gained access to sensitive files that outline espionage operations against Chinese leaders and other critical targets. “We’re deeply concerned,” said one senior intelligence official, who, like others interviewed for this article, was not authorized to speak on the record. “The more that this gets made public, the more capability we lose.” Snowden was able to range across hundreds of thousands of pages of documents on NSA networks, said one former official briefed on the issue. Another intelligence official cautioned that, at this point in the investigation, he did not appear to have obtained “collected data,” or the raw intelligence that results from hacking and other collection operations. [Cyberespionage] [China confrontation]
• China plans world's longest sea tunnel at $42 billion -report
  BEIJING | Thu Jul 11, 2013 7:31am EDT (Reuters) - China will invest 260 billion yuan, or about $42 billion, to revive a long-stalled plan to build the world's longest undersea tunnel across the Bohai Strait linking the country's eastern and northeastern regions, state media said on Thursday. The 123-km (76.4-mile) tunnel will run from the port city of Dalian in northeastern Liaoning province to Yantai city in eastern Shandong, the China Economic Net website said. The report did not say when the project will be completed. China announced plans in 1994 to build the tunnel, at a cost of $10 billion, and set to be completed before 2010. But more than 20 years on, the project remains stuck in the planning stage, the website said, without elaborating. [infrastructure] [Logistics]
• China, US conclude 5th round of strategic talks
  China.org.cn, July 12, 2013 The United States and China concluded their fifth round of annual Strategic and Economic Dialogue (S&ED) in Washington on Thursday. U.S. Treasury Secretary Jack Lew, who co-chaired the dialogue, said in the closing session that the dialogue built on the agreements made by Chinese President Xi Jinping and his U.S. counterpart Barack Obama at a summit in California last month. Lew highlighted progress made in discussions concerning economic cooperation, energy, finance and cyber issues. China's Vice Premier Wang Yang, one of the two Chinese co- chairs of the dialogue, also noted progress made on investment and trade issues. Wang said senior officials from both sides have familiarized with each other and deepened mutual understanding, adding the S&ED can become an important platform in building a new type of major power relationship between the two countries.
• China's African investment grows 30 fold
  By He Shan China.org.cn, July 12, 2013 Ministry of Commerce spokesman Yao Jian speaks at a press conference in Beijing. China's investment in Africa has increased 30-fold since 2005, a commerce official said Thursday. According Ministry of Commerce spokesman Yao Jian, who spoke at a press conference in Beijing Thursday, the investment was divided amongst 2,000 firms in 50 African countries. In 2009, China replaced the United States as Africa's largest trading partner. Trade between China and Africa totaled $166 billion in 2011, while American trade totaled $95 billion, according to a Guardian report. China's growing investment has spurred the United States to engage more competitively with Africa. The U.S. and Africa signed the African Growth and Opportunity Act in 2000, which expired at the end of last year. During a June 26 to July 2 trip to Africa, U.S. President Barack Obama pledged to invest in a multibillion dollar power project on the continent. China announced in 2011 that it had waived tariffs for 97 percent of exports from Africa's least developed countries. Yao said China has been always the largest importer for Africa's least-developed countries, accounting for 25 percent of those countries' export volume. It is also noteworthy that Nigerian President Goodluck Jonathan's recent visit, during which Chinese President Xi Jinping announced the finalization of a $1.1 billion loan from China to Nigeria. Nigeria has Africa's second-largest economy. It is also Africa's largest oil-producer. "Through multi-way cooperation, [like the] China-Africa Cooperation Forum, China has facilitated Africa's participation in the global economy and increased its access to benefits of global trade,"said Yao. He added that China has donated to the WTO since 2008 to provide trade assistance to Africa's least-developed countries, which, Yao said, allowed China to help expedite African countries' admission to the organization. [China rising] [ODI] [Africa]
• Seoul Had 'Frank Discussions' in Beijing About Reunification
  South Korean and Chinese officials held "frank discussions" about Korean reunification during President Park Geun-hye's visit to China last month, Foreign Minister Yun Byung-se said Thursday. "Reunification issues have been a taboo in bilateral relations, but Chinese leaders this time spoke about them openly," which indicates "how much the bilateral ties have improved," Yun told said. Yun Byung-se /News 1 Yun Byung-se /News 1 China also "used resolute and clear expressions about North Korean denuclearization. It was impossible to doubt its sincerity," Yun said at the Kwanhun Club, a fraternity of journalists. "The idea of some academics that North Korea is becoming a strategic burden to China rather than a buffer state is now shared by the Chinese leadership," he added. He said China's top priority in Korean Peninsula policies used to be stability, denuclearization and negotiations, but the order of those priorities has changed to denuclearization, stability and negotiations. Yun stressed, however, that the Park administration is not pursuing reunification based on projections of an implosion of the North Korean regime.
• N.Korea won't break nuclear stalemate with diplomatic maneuvers
  Global Times | 2013-7-8 19:03:01 By Global Times A North Korean delegation led by Kim Song-nam, vice director of the International Affairs Department of the Central Committee of the Workers' Party of Korea, left for China on July 2. Meanwhile, North Korea's First Vice Foreign Minister Kim Kye-gwan, also stopped by Beijing the same day before heading to Moscow to talk with Deputy Foreign Ministers Vladimir Titov and Igor Morgulov about the resumption of the Six-Party Talks. The moves by North Korea have attracted wide attention. As South Korean President Park Geun-hye just paid a state visit to Beijing, it is very important for the North to catch what attitudes China and the South took toward its nuclear issue and to what degree China had reached consensus with the international community. This would help Pyongyang reevaluate its diplomatic policies, take the next steps correspondingly, and most urgently, make preparations for its "denuclearization talks" with Russia. There is no denying that China has big influence on North Korea's diplomacy. China is able to exert its influence through economic and military means. The Treaty of Friendship Cooperation and Mutual Assistance between the two countries is still in effect. [Agency] [Chinese IR] [China NK]
• Are China and the United States Converging in Their Treatment of North Korea?
  Posted on 11 June 2013. By Andrew Kwon According to reports, this past weekend’s Xi-Obama Summit went “terrific.” While the two leaders spoke on sensitive issues, like cyber attacks, they found additional common ground on North Korea. They agreed to continue to pressure North Korea on its nuclear ambitions, but how far is China willing to go? In the past few months we have seen a China that is more willing to discuss internally the challenges faced by North Korea and take additional steps to reign in North Korea’s behavior. For example China has taken a stronger stance on North Korea’s financial activities within China. [China NK] [Sterile]
• China Has World’s Most Active Missile Programs, U.S. Says
  By Tony Capaccio - Jul 12, 2013 3:17 AM GMT+1200 China’s military has the world’s “most active and diverse ballistic missile program,” with an expanding inventory of nuclear warheads that can reach the U.S., according to a Pentagon intelligence report. The arsenal includes a new submarine-launched JL-2 ballistic missile that will for the first time let Chinese submarines target parts of the U.S. from near China’s coast, the National Air and Space Intelligence Center said in a new assessment obtained by Bloomberg News. China is expanding its missile programs as the Pentagon pursues a policy of putting more emphasis on U.S. forces in the Asia-Pacific region. China is expanding its missile program under a broader military modernization plan that’s seen the country’s defense spending more than double since 2006. China’s neighbors including Japan and the Philippines have expressed concern that its government is becoming more aggressive in the region, as the U.S. also puts new emphasis on forces in the Asia-Pacific [China confrontation] [Spin] [Military balance] [MISCOM] [Media]
• China Gives N.Korea Waxwork of Kim Jong-il
  A waxwork of late leader Kim Jong-il that China gave North Korea to mark the 60th anniversary of the end of the Korean War /Courtesy of Global Times A waxwork of late leader Kim Jong-il that China gave North Korea to mark the 60th anniversary of the end of the Korean War /Courtesy of Global Times China has given North Korea a wax figure of late leader Kim Jong-il to mark the 60th anniversary of the armistice that halted the 1950-53 Korean War on July 27. The move is seen as a conciliatory gesture by Beijing after bilateral relations chilled over North Korea's nuclear weapons program. China's state-run Global Times on Wednesday said the Great Man Wax Museum of China and the International Department of the Communist Party marked the presentation with a ceremony. A North Korean delegation led by the vice minister for education and science, as well as Pyongyang's top diplomats in Beijing attended the event. Meanwhile, Hong Kong media reported Wednesday citing experts that North Korean leader Kim Jong-un may visit China this fall in order to try and repair strained ties.
• N.Korea Loses Lucrative Fishing Deal with China
  The Chinese Ministry of Agriculture has banned Chinese trawlers from fishing in North Korean waters citing failed negotiations with the reclusive country. The move amounts to another sanction against North Korea from its sole ally, because it has been earning substantial sums from permitting Chinese trawlers to fish in its waters. Negotiations between the China Distant Water Fishery Association and the North Korea Common Fishery Association collapsed at the end of June, according to China's state-run Global Times.
• Taiwan's crucial role in the US pivot to Asia
  Michael Mazza | American Enterprise Institute July 09, 2013 The Obama administration’s “pivot” or “rebalance” to Asia aims to improve security, prosperity, and human rights in the region, with particular focus on security efforts. Taiwan and the United States have a long-standing but often-underemphasized security partnership that could play a significant role in this effort. Because of its proximity to and knowledge of China, Taiwan is uniquely equipped to help US efforts to (1) expand presence and access in the region by ensuring US forces can utilize facilities on the island in the event of a conflict; (2) build partnership capacity by improving its self-defense capabilities; and (3) improve military innovation by sharing experience, technology, and intelligence with the United States. Rather than fearing damaging bilateral ties with China, the United States should take advantage of the benefits this important partnership can offer. [Taiwan] [China confrontation] [US global strategy]
• Will S. Korea’s New Naval Base Provoke China?
  By Andrew Yeo July 10, 2013 inShare.1 On Jeju Island, a small paradise off the southwest coast of South Korea, protests have occurred on a near daily basis for almost three years. Although somewhat unusual for an island known for its popularity as a tourist destination for honeymooners, a segment of local residents, joined by domestic and transnational activists, remain staunchly opposed to the construction of a South Korean naval base on an “island of peace.” Among several their several grievances, opponents of the base argue that its construction may trigger a naval arms race in the region, while increasing tensions with China. Most South Koreans have dismissed these concerns as either a classic not-in-my-backyard type protest or a politically motivated agenda driven by leftist activists and opposition party members. [Jeju] [Base] [China confrontation]
• War games tied to US pivot strategy in Asia
  By Robert Gonzaga Inquirer Central Luzon 4:20 am | Friday, June 28th, 2013 RAISING THE FLAG In a scene old-timers say brings to mind the raising of the US flag during the World War II battle of Iwo Jima, American sailors hoist their flag on the guided missile destroyer USS Fitzgerald as it docks in Subic Bay on Thursday. The ship is taking part in Philippine-US naval exercises. The United States captured Iwo Jima after a bloody battle with Japan in the Pacific. RAFFY LERMA SUBIC BAY FREEPORT, Philippines—The joint naval exercises between the Philippines and the United States have nothing to do with the Philippines’ territorial dispute with China in the West Philippine Sea (South China Sea), but these have to do with US President Barack Obama’s “pivot strategy” in Asia, a US Navy official said. At the opening of the Cooperation Afloat Readiness and Training (Carat) 2013 in this former American naval base on Thursday, US Navy Rear Adm. Thomas Carney said the exercises were “part of the rebalance that the US is looking to reinforce its relations, not only militarily but economically and politically with Asia.” [Joint US military] [China confrontation]
• China bans fishing in waters off DPRK's east coast
  Xinhua, July 9, 2013 Chinese fishermen have been told to stop fishing in the waters off the Democratic People's Republic of Korea (DPRK)'s east coast because of a bilateral dispute over fuel supplies. Waters off DPRK's east coast are risky due to the complicated and changeful situation in the Korea Peninsula and their proximity to Russia, Japan and the Republic of Korea, China's Ministry of Agriculture (MOA) said in a statement. A large number of Chinese trawlers work in the waters every year. Without stringent rules and arrangements disputes can happen, the statement said. Trawlers can fish in the waters if they get approval from authorities in China and the DPRK. In late June, the DPRK said Chinese ships had to buy fuel from its suppliers rather than making their own arrangements as in the past. "The DPRK's decision causes serious harm and potential risks to normal operations and work safety of Chinese trawlers," the MOA statement said. The MOA and the Ministry of Foreign Affairs have asked local authorities to recall trawlers working in those waters and increase supervision to prevent possible disputes. Individuals and organizations who go fishing in those waters without the approval of the Chinese government will be punished according to the Criminal Law, according to the statement.
• US counterbalancing China, not containing
  July 9th, 2013 Author: Robert A. Manning, Atlantic Council A widely held belief among many in China is that every US policy move affecting China is part of a concerted strategy of containment aimed at preventing China’s re-emergence. Thus, the US ‘rebalancing’ in Asia; the Trans-Pacific Partnership (TPP); and the US alliances with Japan, the ROK and Australia, are all components of a US effort to maintain US dominance at China’s expense. This view is wrong. Containment was US policy toward the former Soviet Union during the Cold War. The USSR was a rival ideology, a competing anti-capitalist economic system aimed at expanding the Soviet empire. Indeed, fear of Soviet hegemony was a major factor that led President Nixon and Chairman Mao to open US–China relations in 1971. [China confrontation] [MISCOM]
• China fishing ban east of North Korea builds tension between uneasy allies
  Dispute over fuel purchases adds to an increasingly fractious relationship, as Japan weighs in with China criticism Agencies guardian.co.uk, Tuesday 9 July 2013 04.57 BST China's foreign minister, Wang Yi, with his North Korean counterpart, Pak Ui-Chun. Photograph: Roslan Rahman/AFP China has banned its trawlers from fishing off the eastern coast of North Korea, due to a dispute over fuel supplies, the latest irritant in ties between the often uneasy allies. North Korea decided last month that Chinese ships operating legally in its waters had to buy fuel from its suppliers rather than making their own arrangements as in the past, the Chinese government said late on Monday. "Our fishing boat owners and companies believe this decision by North Korea will affect normal fishing operations and safety, creating risks and dangers," the government said on its main website, citing the agriculture ministry. Waters to the east of North Korea are also especially risky due to the "complex, changeable situation on the Korean peninsula" and their proximity to Russia, Japan and South Korea, the government said. "Many of our fishing boats operate in North Korean [waters] and if they are not properly managed or well-organised then diplomatic incidents can easily occur," it said.
• China’s rising stature in global finance
  The country’s financial markets are deepening, foreign investment keeps pouring in, and capital is flowing outward. What would it take for China to assume a new role as world financier? July 2013 | byRichard Dobbs, Nick Leung, and Susan Lund China, as the world’s largest saver, has a major role to play in the global financial rebalancing toward emerging markets. Today, these countries represent 38 percent of worldwide GDP but account for just 7 percent of global foreign investment in equities and only 13 percent of global foreign lending.1 Their role seems poised to grow in the shifting postcrisis financial landscape, since the advanced economies face sluggish growth and sobering demographic trends. As a lead player in that shift, China could become a true global financier and, with some reform, establish the renminbi as a major international currency. [Reserve]
• China's New Jet, Radar Complicate US Posture
  Russian-made Gear Extends Beijing's Punch Jul. 6, 2013 - 10:10AM | By WENDELL MINNICK | Comments TAIPEI — China’s increasing military musculature continues to crush the margins of how far the US military can conduct operations near the mainland, experts say. Through the purchase of Russian-made equipment, China is attempting to break beyond the current air defense range of 250 kilometers in what US experts refer to as China’s anti-access/area-denial strategy. China plans to procure two new Russian weapon systems that will extend the range of its air defense strike capability to 400 kilometers. This would place all of Taiwan within the scope of China’s air defense network and endanger the Japanese-controlled Senkaku Islands, which China also claims. The first is the much-reported negotiation for the 400-kilometer range S-400 surface-to-air missile (SAM) system with a possible deal after 2017, when the Russian manufacturer, Almaz-Antey, fulfills Russian military orders. [China confrontation] [Mititary balance] [A2/AD]
• China, Russia hold largest-ever joint naval drills
  5:04 a.m. EDT July 5, 2013 BEIJING (AP) — China and Russia kicked off their largest-ever joint naval drills on Friday in the Sea of Japan, a further sign of the broad-based progress in ties between the former Cold War rivals. Eighteen surface ships, one submarine, three airplanes, five ship-launched helicopters and two commando units were taking part in the "Joint Sea-2013" exercise that runs through July 12. The drills will cover anti-submarine warfare, close maneuvering, and the simulated take-over of an enemy ship. The drills are considerably bigger than anything China's navy has previously held with a foreign partner. China's increasingly formidable navy is contributing four destroyers, two latest-generation guided missile frigates and a support ship, all of which sailed Monday from the port of Qingdao, where China's Northern Fleet is based, to the rallying point in Peter the Great Bay near Vladivostok. "This is our strongest line-up ever in a joint naval drill," Rear Admiral Yang Junfei, commander of the Chinese contingent, was quoted as saying by state media. [Russia China]
• Ma promotes cross-strait trade services pact
  Ma promotes cross-strait trade services pactROC President Ma Ying-jeou explains the significance of the recently concluded Cross-Strait Trade in Services Agreement July 3 in Taichung City. (CNA) •Publication Date:07/04/2013 •Source: Taiwan Today ROC President Ma Ying-jeou said July 3 that the recently concluded Cross-Strait Trade in Services Agreement is key to economic development, and the government will conduct a series of forums to communicate with services operators for better understanding of the benefits of the pact. “Very few Asian countries signed free trade agreements in 2000, but the number has grown to more than 100 as of today,” Ma said. “Trade volumes among Asian nations have surpassed those with other continents, proof that Asia is becoming the engine for world economic growth.” [Straits] [Services]
• China, Pakistan ink transport pact
  Premier Li Keqiang with Pakistan's Prime Minister Nawaz Sharif and Punjab Chief Minister Shahbaz Sharif (left) ahead of a signing ceremony at the Great Hall of the People in Beijing on Friday. [Wu Zhiyi/China Daily] Premier Li Keqiang with Pakistan's Prime Minister Nawaz Sharif and Punjab Chief Minister Shahbaz Sharif (left) ahead of a signing ceremony at the Great Hall of the People in Beijing on Friday. [Wu Zhiyi/China Daily] China and Pakistan signed an agreement on Friday on the blueprint for a huge transport project linking northwestern China to the Arabian Sea. Observers said the project, named the "China-Pakistan economic corridor", will open a new route for China's goods and energy. It will also give a strong boost to Pakistan's economy and help maintain security there, they said. The broad agreement was among eight pacts signed after a meeting at the Great Hall of the People between Premier Li Keqiang and Pakistani Prime Minister Nawaz Sharif. The cost of the economic corridor project is not known at this stage. "Our two countries can closely link China's Western Development Strategy with Pakistan's development strategy of reviving its economy," Li told Sharif at their meeting. "This will also deepen regional cooperation in South Asia and benefit people of the two countries and the region." The transport link is described as a "long-term plan'' to connect Kashgar in the Xinjiang Uygur autonomous region to the southwestern Pakistani port of Gwadar, more than 2,000 km away across a mountainous area. [Pakistan] [Eurasian landbridge]
• Qinghai-Tibet Railway expands its reach
  Xinhua, July 6, 2013 Seven years after the Qinghai-Tibet Railway went into operation, the "roof of the world" is about to see more railways connecting it to other parts of China. Several new railway lines are either under construction or being planned to form a rail network in the sparsely populated Qinghai-Tibet Plateau in western China, according to the Qinghai-Tibet Railway Company, the operator of the world's highest railway. During China's 12th Five Year Plan (2011-2015) period, the Qinghai-Tibet Railway will branch out in all directions, ending the history of no railways in the southern part of Tibet Autonomous Region and strengthening its ties with neighboring provinces. The Qinghai-Tibet Railway, which spans 1,956 km from Xining, Qinghai Province, to Lhasa, regional capital of Tibet, carried 10.76 million people and 56.06 million tonnes of cargo in 2012. With these new extension lines in place, the company estimates that its passenger and cargo loads will increase to 14 million and 90 tonnes, respectively, in 2015. [Railways]
• Sharif to seek Chinese help for nuclear plant during visit
  Last Updated: Tuesday, July 02, 2013, 19:50 A- A A+ Sharif to seek Chinese help for nuclear plant during visit Islamabad: Pakistan Prime Minister Nawaz Sharif is expected to seek Chinese help for various development projects including a major nuclear power plant during his visit to Beijing this week, media reports said on Tuesday. Sharif has opted to visit China for his maiden official foreign trip since taking power in June as he struggles to address Pakistan's crippling energy crisis and revive its ailing economy. [Nuclear energy] [Pakistan]
• Pakistan, China sign deal to build 200-km-long tunnel through PoK
  Last Updated: Friday, July 05, 2013, Pakistan, China sign deal to build 200-km-long tunnel through PoK Beijing: China and Pakistan on Friday signed eight agreements, including a whopping USD 18 billion deal to build a 200 km-long strategic tunnel through the rugged PoK, as the two all-weather allies sought to boost economic ties and supply critical oil to the energy-hungry Communist giant. Pakistan, China sign deal to build 200-km-long tunnel through PoK The agreements were signed after visiting Pakistan Prime Minister Nawaz Sharif held talks with his Chinese counterpart Li Keqiang here at the Great Hall of the People. China has strategic interest in the Pak-China Economic Corridor, Li said on the 200 km-long tunnel which will connect Pakistan's Gwadar Port on the Arabian Sea and Kashghar in Xinjiang in northwest China. [Pakistan] [Logistics]
• Figures show shifts in US, China economies
  China Daily, July 5, 2013 Official data on the United States' exports and imports in May showed further widening of the trade deficit with China, but the figures also signaled shifts in the world's two biggest economies, with implications for global growth. According to the Commerce Department, the US in May imported $45 billion more in goods and services than it sent abroad. Weak global demand, including from slower-growing China, pushed US exports down. But the bigger-than-expected monthly jump in the trade deficit was also fueled by higher imports, mostly from China. Several surveys of economists had predicted a May trade-gap total more or less flat with April's upwardly revised $40.1 billion. Instead, the $45 billion figure was the biggest one-month increase since November, and the $232-billion value of imports was the second highest in US history, just $2 billion off the mark set in March 2012. [Trade]
• N.Korean Official Visits Remote Part of China
  Kim Song-nam Kim Song-nam Senior North Korean official Kim Song-nam flew from Beijing to the western Chinese province of Qinghai on Thursday, according to an informed source in Beijing. Qinghai, a province on a plateau 3,000 m above sea level, abounds with underground and tourism resources but has a small population and is less industrially developed. There was some speculation that he is visiting China to prepare for leader Kim Jong-un's visit to Beijing The source said Kim Song-nam "visited agricultural facilities in Qinghai. His itinerary looks a bit strange, even if it were a preliminary tour to prepare for Kim Jong-un's visit."
• China-ROK joint statement for the future (full text)
  June 27, 2013 22:14:29 Source: Xinhua Xinhua Beijing, June 27 (Xinhua) Chinese President Xi Jinping should be invited, Republic of Korea President Park Geun-hye, 2013 June 27 to 30 state visit to China by the Chinese government and people grand welcome and hospitality. Park Geun-hye and President Xi Jinping held talks with President. Chinese Premier Li Keqiang, National People's Congress Standing Committee Chairman Zhang met with President Park Geun-hye. The two sides made positive comments on 1992 results of development of bilateral relations since the establishment of diplomatic ties, China-ROK relations, the Korean Peninsula, Northeast Asia and the regional situation, international issues of common concern in-depth exchange of views put forward based on mutual trust, and further enrich the development of China-ROK strategic partnership vision for the future.
  (machine translation of Chinese original) [Park_Xi13]
• China to Send Senior Official to N.Korean Armistice Celebrations
  China is to send a high-ranking government official to North Korea around the time of the 60th anniversary of the armistice that halted the Korean War on July 27, a diplomatic source in Beijing said Wednesday. Senior North Korean official Kim Song-nam went to China on Tuesday and met with officials from the Chinese Communist Party's International Department. The source senior said that North Korean military figure Choe Ryong-hae, who visited China at the end of May, asked Chinese President Xi Jinping to send a senior official to the anniversary and to invite North Korean leader Kim Jong-un to China. There was apparently no commitment from Beijing to invite Kim, but the idea of sending a special envoy to the anniversary celebrations found more traction.
• MOFA concerned by lawmakers' Diaoyutais visit
  MOFA concerned by lawmakers' Diaoyutais visitThe Diaoyutai Islands are an inalienable part of ROC territory from the perspective of history, geography, practical use and international law. (CNA) •Publication Date:07/02/2013 •Source: Taiwan Today The recent incursion by Japanese lawmakers into ROC territorial waters surrounding the Diaoyutai Islands is a matter of serious concern, according to the Ministry of Foreign Affairs July 1. “The MOFA has taken note of the reported Japanese action,” the MOFA said in a statement. “It is indisputable that the Diaoyutais, from the perspective of history, geography, practical use and international law, are an inalienable part of ROC territory. All parties are urged to refrain from actions that could undermine regional peace and stability.” The remarks follow media reports earlier in the day that four Japan-registered fishing boats carrying around 30 people, including incumbent and former Japan lawmakers, sailed within 12 nautical miles of the islands. [Diaoyu]
• Another Senior N.Korean Official Visits China
  Senior North Korean official Kim Song-nam left Pyongyang to visit China on Tuesday, the official KCNA news agency said. It is the third such visit in a few weeks, and may be aimed at arranging a China visit for North Korean leader Kim Jong-un or winning back lost love from the North's sole supporter. Kim is a deputy director of the Workers' Party's International Affairs Department, in charge of interpreting for high-ranking North Korean officials since Kim Jong-il was in power.
• Park-Xi summit leaves North Korea in funk
  By Kim Tae-gyu 2013-07-01 19:05 Park-Xi summit leaves North Pyongyang may be apprehensive due to the summit between President Park Geun-hye and Chinese President Xi Jinping, experts said Monday. During her four-day state visit to China, Park developed a close rapport with Xi as they articulated a strong commitment to a nuclear-free Korean Peninsula. “Things have changed after the summit. Now, South Korea and China appear to be much closer and Pyongyang is well aware of this fact,” said Chang Yong-seok, a researcher at the Institute of Peace and Unification Studies affiliated with Seoul National University. [Park_Xi13]
• China’s North Korea Policy: Backtracking from Sunnylands?
  Print This Post | Email This Post | | Share on Facebook By Stephanie Kleine-Ahlbrandt 02 July 2013 In recent months, China has affected a sterner disposition toward North Korea, reflecting growing frustration with its errant neighbor. But despite Chinese President Xi Jinping’s stronger rhetoric on denuclearization during his summit discussions with US President Barack Obama at Sunnylands, Beijing’s policy is still based upon the strategic priorities of, in descending order, “no war, no instability, no nukes” (????????). As soon as Xi made his statement, Chinese experts began to backpedal.[1] Chinese government analysts insist that Beijing has not changed its priorities with regard to North Korea and are surprised that outsiders believe otherwise. To understand China’s policies towards North Korea and their potential for change, it is crucial not to mistake bolder rhetoric and the public debate—online, in the media, and in academia—for a lasting shift in state policy.[2] Outwardly, Chinese policy towards the DPRK appears to be in a state of deepening uncertainty. Since the DPRK conducted its third nuclear test in February 2013 and issued belligerent statements throughout the spring, Beijing has used bolder rhetoric, allowed a vibrant domestic debate about North Korea, and supported a UN sanctions resolution.[3] Last week, Xi Jinping and the leader of North Korea’s archrival, South Korea, discussed the importance of denuclearizing the North.[4] Satirical jokes about Kim Jong Un abound on the Chinese Internet, uncensored. Chinese strategists have expressed the need to dilute the ideological and sentimental factors in PRC-DPRK bilateral relations to achieve “normal state-to-state relations.” Many Chinese policy experts agree that China should recalibrate its North Korea policy to better serve its own national interests. In the words of one analyst, “China should righteously say ‘no’ to North Korea’s irresponsible behavior that threatens regional peace and stability.”[5] [China NK]
• China, Russia to hold joint naval drill
  China.org.cn, July 2, 2013 A Chinese fleet consisting of seven naval vessels departed from east China's harbor city of Qingdao on Monday to participate in Sino-Russian joint naval drills scheduled for July 5 to 12. The fleet consisted of four destroyers, two escort vessels and a supply ship, marking the largest number of naval forces that the Chinese navy has ever sent to take part in Sino-foreign naval exercises. [Photo/Xinhua] [Russia China]
• President Park's China visit: Promoting better cooperation and coordination?
  By Fan Jishe China.org.cn, July 1, 2013 Accompanied by a sizeable delegation, South Korean President Park Geun-hye began her four day state visit to China on June 27. Her visit is expected to further strengthen the relationship between the two countries and to draw "a new blueprint for the common prosperity of Korea and China looking to the next two decades," as Park said during an interview with China Daily on June 26. Accompanied by a sizeable delegation, South Korean President Park Geun-hye began her four day state visit to China on June 27. [Xinhua] China and South Korea have made dramatic progress in their overall relations in the past two decades, especially in their economic relations. Now both sides have pledged in a joint statement to enhance trade and economic cooperation and to push forward on the Free Trade Agreement. The Chinese-Korean economic relationship is very likely to further deepen in the coming years. However, in the area of regional security and diplomacy, little progress has been made in the past. Chinese-South Korean security relations are complicated by both North Korea's nuclear policy and the South Korean security alliance with the United States. South Korea's policy toward North Korea has undergone lots of changes over the past two decades, and while some of these changes are conducive to a peaceful and diplomatic solution to the North Korean nuclear issue, some are not. South Korea has generally pursued one of two overarching policies on the issue of North Korea's nuclearization: the Sunshine Policy initiated by former President Kim Dae-jung and followed by former President Roh Moo-hyun, and the "tough love engagement policy" pursued by former President Lee Myung-bak. These two schools of thought have very different implications for South Korea's relationships with North Korea, the United States and China. Undoubtedly, South Korea has much at stake where the stability and denuclearization of the Korean Peninsula are concerned. However, in deciding how to achieve that goal, South Korea has hesitated between unconditional engagement and conditional engagement with North Korea. [Park_Xi13]
• Kerry praises China on North Korea efforts, but criticizes its action on Snowden
  By Karen DeYoung, Tuesday, July 2, 9:24 AM E-mail the writer BANDAR SERI BEGAWAN, Brunei — Secretary of State John F. Kerry praised China Monday for what he called “very firm statements and very firm steps” insisting that North Korea give up its nuclear weapons program, even as he said China could have done more to help the United States in apprehending fugitive leaker Edward Snowden. Kerry arrived here Monday for two days of talks with his counterparts across Asia, part of the Obama administration’s efforts to bolster its standing and influence with the East. [Kerry] [China NK]
• Pacific pivots on China
  Dawn Blitz military exercise fueled regional tensions, aspirations By Gretel C. KovachnoonJune 29, 2013 Japanese Defense Forces ground , air and sea units participated in a joint exercise with US Marines in the ongoing "Dawn Blitz" exercises at San Clemente Island on June17, 2013. The exercised for the day included "taking an airfield" where Marines did the initial assault then handed off to Japanese forces and an amphibious assault ship landing of vehicles and supplies from a ship to the island.Japanese Defense Forces ground , air and sea units participated in a joint exercise with US Marines in the ongoing "Dawn Blitz" exercises at San Clemente Island on June17, 2013. The exercised for the day included "taking an airfield" where Marines did the initial assault then handed off to Japanese forces and an amphibious assault ship landing of vehicles and supplies from a ship to the island. — John Gibbins What does San Clemente Island, a military training range off the San Diego coast, have in common with an uninhabited archipelago nearly 7,000 miles away in the East China Sea? The desolate outcroppings on either side of the Pacific Rim have become flash points in the last year between the world’s three largest economies, as the United States, Japan and China jockey for power and influence in the region. The cross-drifts over Asia Pacific converged this month on San Clemente Island during a joint exercise by U.S. and Japanese armed forces. Japan’s deepening security alliance with the U.S., waning support for restrictions on its self-defense forces, and growing interest in amphibious operations were all on display. In the backdrop was the U.S. pivot, or rebalance, of military resources to the Pacific amid the drawdown in Afghanistan and postwar Iraq. All of which leads to China. [China confrontation] [Japanese remilitarisation] [Amphibious]
• China state media blames Syria rebels for Xinjiang violence
  Reuters BEIJING (Reuters) - Chinese state media on Monday blamed Syrian opposition forces in unusually specific finger pointing for training Muslim extremists responsible for the deadliest unrest in four years in China's far-western region of Xinjiang. [Islamists]
• Xinjiang terrorists finding training, support in Syria, Turkey
  Global Times | 2013-7-1 19:43:01 By Lin Meilian Armed police officers attend an oath-taking ceremony at the People's Square on Saturday in Urumqi, Xinjiang Uyghur Autonomous Region. At least 24 civilians and police officers were killed during a recent terrorist attack. Photo: CFP From a foreign student studying in Istanbul to a soldier receiving training in Syria's Aleppo, to a terrorist plotting attacks in China's Xinjiang Uyghur Autonomous Region, 23-year-old Memeti Aili said he felt like his dream was turned into a nightmare. Memeti Aili was recently caught by the police when returning to Xinjiang to complete his mission to "carry out violent attack and improve fighting skills" assigned by the East Turkistan Islamic Movement (ETIM). ETIM is a terrorist group that aims to create an Islamist state in Xinjiang, which works alongside the East Turkistan Education and Solidarity Association (ETESA), an Istanbul-based exile group. [Islamists] [Xinjiang] [Syria]
• Park Geun-hye fever sweeps China
  By Zhao Jinglun July 1, 2013 Republic of Korea (ROK) President Park Geun-hye chose China for her second overseas visit since becoming president. Her first visit was, understandably, to the United States, a Korean ally. But, unusually, Park skipped Japan. Her choice seems to reflect growing South Korean resentment of the country, where the Abe government denies Japan's war crimes and the Japanese right seems bent on reviving Japanese militarism. Perhaps more disturbing to Park is the fact that the Japanese right has staged racist anti-South Korean rallies on more than one occasion. By contrast, the Mandarin-fluent Park loves Chinese culture. She has read many Chinese classics and holds an honorary degree from Taiwan's Chinese Culture University. As Park said while speaking at Tsinghua University on June 29, "During my most difficult time, it was China's famous scholar Feng Youlan's History of Chinese Philosophy that served as the beacon of my life and helped me regain my inner calm." When Park visited Washington, President Obama called her "tough." But in Beijing, she exuded feminine charm. These are the two sides of the ROK president: soft on the outside, but firm on the inside. [Park Geun-hye]
• Lhasa completes renovation of old city
  Xinhua, July 1, 2013 Lhasa, the capital city of Southwest China's Tibet autonomous region, on Sunday completed renovation of its old city, a bustling cultural and commercial center. The 1.5-billion-yuan ($243 million) project involved upgrading the sewage system, water supplies and electric lines, elimination of safety hazards, installment of heating facilities and preservation of old-styled buildings, said Che Zala, secretary of the Lhasa municipal committee of the Communist Party of China, at a ceremony. "The project has enhanced protection of Tibetan cultures, improved the old city's infrastructures and lifted the living conditions there," said Che Zala. Covering an area of 1.33 square km, the old urban areas of Lhasa centers around Barkhor Street, known for its bustling businesses and cultural sites, and the Jokhang Temple, one of the major monasteries in Tibet and a World Cultural Heritage site. To solve complaints over the poor infrastructure and to protect the historical buildings in the area, the city government launched renovation plans in December 2012, after winning support from 96 percent of residents.
• Park's China Visit Heralds New Era in Dealing with N.Korea
  President Park Geun-hye on Sunday wrapped up a four-day state visit to China. Breaking with tradition, Park chose to visit China before Japan, demonstrating the importance South Korea places on relations with China, which was an enemy in the 1950-53 Korean War. South Korea-China relations seem poised to enter a new phase 21 years after the two sides formed diplomatic ties. Until now, Beijing has favored Pyongyang over Seoul in its Northeast Asia policies, but this appears to be changing now that President Xi Jinping is in office. [Park_Xi13]
• Park Offers Return of Remains of Chinese Soldiers
  President Park Geun-hye on Saturday offered to return the remains of hundreds of Chinese soldiers who were killed during the 1950-53 Korean War. Park made the offer in a meeting with Chinese Vice Premier Liu Yandong. "This year marks the 60th anniversary of the armistice," Park told the vice premier. "There are some 360 remains of Chinese soldiers in South Korea. The South Korean government has taken good care of them, but the bereaved families in China must be waiting for their return, and we would like to repatriate them." Park said that the main objective of her trip to China was to bolster trust and added she was deeply moved by China's show of friendship. She added that she missed an opportunity to make the offer when she met with President Xi Jinping and told the vice premier about it instead. [MIA]
• [Column] Government twists language after summit with China
  Posted on : Jul.1,2013 14:33 KSTModified on : Jul.1,2013 15:29 KST China’s and SK’s accounts of discussions on N. Korean denuclearization were substantially different By Seok Jin-hwan, Blue House correspondent in Beijing It was the evening of June 28, the second day of South Korean President Park Geun-hye’s trip to China. Park had a meeting and a luncheon with Li Keqiang, premier of China and number two in the country’s political hierarchy. The reporters who had been waiting to hear the results of the meeting received word that there would not be an additional briefing afterward. But a short time later, China Central Television (CCTV) reported scenes from the meeting and details from the conversation. South Korean media had no choice but to use quotations from this in their reports. While no reporter accompanying the President on her trip would have been happy about having to write a report using quotes from Chinese media, one could accept this as an issue of protocol and let it slide. However, when the content of the explanations offered by the governments of the two countries are not consistent, this becomes an entirely different kind of problem. The press statement that the Blue House released the next morning on the results of the meeting with Li was not consistent with what CCTV had said in its report of the meeting. And not only that, but the inconsistency had to do with the key issue of the meeting. In regard to how to bring about the denuclearization of the Korean peninsula, Li said, “China’s position on denuclearization of the Korean peninsula is clear, firm, and unchanging. We hope that the six-party talks can be resumed soon and that the peace and stability of the peninsula will be protected.” However, the Blue House reported Li as having said that “China opposes North Korea’s possession of nuclear weapons and its desire that denuclearization of the Korean peninsula will be realized is firm and unchanging” and that he urged that problems be resolved “through dialogue and negotiations.” This press release added a reference to opposition to North Korean possession of nuclear weapons, which Li did not mention, and omitted the resumption of the six-party talks, which Li had emphasized as the solution to the issue. [Park_Xi13] [Spin] [Denuclearisation]
• At summit, South Korea and China agree on NK denuclearization
  Posted on : Jul.1,2013 14:38 KSTModified on : Jul.1,2013 15:19 KST China sticks to vague references to the “Korean peninsula”, avoid direct denunciation of N. Korea By Gil Yun-hyung, staff reporter and Seong Yeon-cheol, Beijing correspondent In a press conference that was held shortly after the Korea-China summit on June 27, South Korean President Park Geun-hye declared that she and her Chinese counterpart agreed that it was not acceptable for North Korea to possess nuclear weapons. But on the following day, Chinese premier Li Keqiang made clear that China takes a different view from South Korea, reconfirming the country’s standard position about “denuclearizing the Korean peninsula.” “The Chinese leader and I share the view that North Korean possession of nuclear weapons cannot be tolerated in any situation,” Park said in the press conference held shortly after the summit. The joint statement of vision for the future that the South Korea and China adopted on June 27 states, “South Korea made clear that North Korean possession of nuclear weapons cannot be tolerated in any situation.” However, China only said, “in regard to this, both sides agree that the development of nuclear weapons by related parties is a serious threat to the peace and stability of Northeast Asia, including the Korean peninsula.” China’s careful deliberation is evident when it says that “related parties” must be denuclearized, without actually specifying “North Korea.” China was apparently trying to avoid seeming to be joining South Korea to put pressure on the North [Heading] [Park_Xi13]
• The US, Chinese and Japanese media reactions to Pres. Park’s China summit
  Posted on : Jul.1,2013 14:45 KSTModified on : Jul.1,2013 15:18 KST The editorial page of the Global Times website, captured on June 27. Chinese media plays up room to develop Seoul-Beijing ties; Japanese newspapers wary of stronger South Korea-China relations By Seong Yeon-cheol, Park Hyun and Jeong Nam-ku, Beijing, Washington and Tokyo correspondents China, US, and Japan had very different takes from Seoul - and each other - on the recent summit between South Korean President Park Geun-hye and Chinese President Xi Jinping. The Chinese press emphasized the diplomatic strategy benefits of bringing South Korea over to Beijing’s side. The overseas edition of the People’s Daily, the newspaper of the Chinese Communist Party, published a June 28 column by Renmin University School of International Studies professor Wang Yiwei, who wrote, “China and South Korea, respectively a typical emerging nation and a typical mid-level developed country, can themselves establish a special new-model bilateral relationship.” This, Wang claimed, would allow them to transcend the abnormal situation of the US’s “return to Asia.” The Global Times, the newspaper’s sister newspaper with a focus on international issues, printed a June 29 editorial noting the “strategic difference between putting South Korea within the bosom of the US or between two powers,” referring to the US and China. Other news outlets noted that Park broke with precedent by visiting Beijing before Tokyo. Phoenix Television noted the difference from her predecessor Lee Myung-bak, who “slighted Northeast Asia with his with pro-US actions.” [Park_Xi13]
• Tug-of-war over denuclearization on communique
  By Kim Tae-gyu XIAN ? South Korea wanted China to use a stronger language to condemn North Korea for its nuclear ambitions in their joint communique after the summit between President Park Geun-hye and Chinese President Xi Jinping. But China objected, a Cheong Wa Dae official said Sunday. “There was a tug-of-war as we attempted to put more clear expressions, which are aimed at condemning North Korea’s nuclear programs,” said the official who asked not to be named. “But Chinese negotiators refused to do so. I think they factored in the responses of North Korea.” [Park_Xi13] [Denuclearisation]
• China's War With Japan by Rana Mitter – review
  An excellent account of the Sino-Japanese conflict argues that it had a profound impact on the course of the second world war Delia Davin The Observer, Sunday 30 June 2013 Chiang Kai-shek making a speech Chiang Kai-shek's attempts to stop the Japanese advance by breaching the Yellow River's dykes caused the death of half a million peasants. Photograph: Bettmann/Corbis This gripping political history not only provides a detailed scholarly account of the Sino-Japanese war but also, in a prologue, offers an admirably succinct introduction to the political history of China in the first half of the 20th century. Mitter argues convincingly that the importance of the Sino-Japanese conflict in the second world war is now all too often forgotten. His book will strengthen resistance to the insular tendency to study national histories in isolation from one another. He shows that relations with the wider world were vital to China even when it stood alone against Japan, and that the east Asian conflict shaped both the outcomes of the second world war and the development of the postwar world. The establishment of the People's Republic of China in 1949 can be partially attributed to the war which fatally weakened Chiang Kai-shek's nationalists and allowed the communists to build up both military power and popular support. [Japanese colonialism]

• China opposes US remarks on Xinjiang attack
  Xinhua, June 28, 2013 Foreign Ministry spokeswoman Hua Chunying said Friday that China hopes the United States will avoid using a double standard when discussing terrorism. Hua made the comment in response to a question about U.S. remarks regarding a violent attack that occurred on Wednesday in northwest China's Xinjiang Uygur Autonomous Region. A total of 24 people have been killed by rioters in the attack in Lukqun Township in Xinjiang's Shanshan County. The rioters attacked the township's police stations, a local government building and a construction site, as well as set fire to police cars. Twenty-one police officers and civilians were injured. The police shot and killed 11 rioters at the scene and captured another four who were injured. The U.S. said it is closely following the reports of violence, as well as urged China to conduct a thorough and transparent investigation and to provide due process and legal protection to those have been detained. The U.S. State Department spokesman Patrick Ventrell said the U.S. remained "deeply concerned" by the ongoing reports of discrimination and restrictions against Uygurs and Muslims in China. [Terrorism] [Separatism] [Double standards]
• Why Park Is an 'Old Friend' to China
  When the Chinese Foreign Ministry on Thursday described President Park Geun-hye "an old friend," it was not the first time the term of endearment had been used between the newly chummy neighbors. The term was first used by Chinese Ambassador to South Korea Zhang Xinsen when he congratulated Park on her victory in the presidential election in December last year. Chinese President Xi Jinping used the phrase again on the phone in March when he congratulated her on her inauguration. [Park Geun-hye]
• Park, Xi agree on nuke-free Korean Peninsula
  2013-06-27 17:47 President Park Geun-hye, left, shakes hands with Chinese President Xi Jinping after issuing a joint communiqué at the Great Hall of the People in Beijing, Thursday. The two state leaders called for a swift resumption of the six-party talks to resolve the North Korean nuclear issue. / Yonhap 2 leaders want 6-party dialogue to be resumed By Kim Tae-gyu BEIJING ? President Park Geun-hye and Chinese President Xi Jinping agreed Thursday that North Korea’s nuclear program is a “threat” to the security of the Korean Peninsula, the region and the world peace so it can’t be tolerated. In the news conference after their summit, the two leaders called for the early resumption of the long-stalled six-party talks to disarming the North. [Park_Xi13]
• President Park holds 1st Korea-China summit in Beijing
  Jun 28, 2013 President Park Geun-hye and Chinese President Xi Jinping agreed to cooperate on the denuclearization of the Korean Peninsula at a series of summit talks on June 27. At the Korea-China summit held at the Great Hall of the People in central Beijing, President Park and the Chinese leader adopted a joint communiqué which contains both countries’ will to make a concerted effort to resolve the North Korean nuclear issue and boost the bilateral relationship which marks its 21st anniversary this year. “The two of us shared a common understanding that Pyongyang’s possession of nuclear weapons is unacceptable under any circumstances,” said President Park at a joint press conference after the summit, “and that the denuclearization of North Korea and the peace and stability of the Korean Peninsula are of common interest of the two countries." “We both agreed to continue strategic cooperation toward our common goal and that we should keep international obligations and promises, including the September 19 joint statement, for denuclearization and the UN Security Council Resolutions,” President Park added. The two presidents agreed that the Korean Peninsula trust-building process will help ease tensions and bring about sustainable peace. President Xi expressed his support for improvement in inter-Korean relations based on dialogue and trust between the South and North and for the realization of peaceful unification. [Park_Xi13]
• Xi, Park share nuke position
  Global Times | 2013-6-28 1:13:01 By Ling Yuhuan China and South Korea reached an agreement Thursday that the nuclear weapons development of North Korea poses a serious threat and vowed to make joint efforts to realize denuclearization on the Korean Peninsula, as South Korean President Park Geun-hye kicked off an official visit to China for her first summit with President Xi Jinping. "China resolutely safeguards the peace and stability of the Korean Peninsula and the region, opposes any party disrupting such peace and stability and adheres to resolving problems through dialogues and negotiations," Xi said while meeting with Park, who is on a four-day visit to China, Xinhua reported. "We shared an understanding that North Korea's possession of nuclear weapons cannot be tolerated under any circumstances," Park was quoted as saying by the Yonhap news agency. A joint statement was issued after the summit, which highlighted the stance of both countries on seeking a nuclear-free Korean Peninsula, the Yonhap reported. "Both sides shared an understanding that the relevant nuclear weapons development poses a serious threat to peace on the Korean Peninsula, in Northeast Asia and in the world," the statement said. [Park_Xi13]
• China's Space Program Tries to Catch Up
  Analysis June 26, 2013 | 0600 Print ? Text Size ? China's strategic focus on space is less about national pride than about the importance of space for both the military and economic progress of the country. The Chinese space program has developed rapidly over the past decade, illustrating the importance of the program to Beijing. Shenzhou 10, a 15-day mission that began June 11 and returned to Earth the morning of June 26 marked China's fifth manned mission to space. An increasing, ongoing presence in space is essential for civilian and military communications. Satellites' functions include navigation systems such as GPS, weather data and communications relays. But the significance of space goes beyond satellites. Technological advancement and development is required for countries such as China that want to participate in future resource development in space. [Aerospace]
• Situation on Korean Peninsula delicately balanced
  (People's Daily Online)13:54, June 24, 2013 Edited and translated by Liang Jun, People's Daily Online While tension has been high on the Korean Peninsula situation for several months, recently there have been some encouraging signs. On June 16, the Democratic People's Republic of Korea (DPRK) proposed high-level talks with the United States and expressed its willingness to achieve denuclearization. On June 19, a strategic dialogue between the foreign ministries of China and the DPRK was held in Beijing. During the course of these talks, DPRK First Vice Foreign Minister Kim Kye Gwan said the denuclearization of the Korean Peninsula had been the aim of late leaders Kim Il Sung and Kim Jong Il. He also said the DPRK was willing to hold dialogue with other interested parties and was willing to engage in any form of contact, including six-party talks, in the hope of resolving the nuclear issue peacefully through negotiation.
• Obama's goal in Africa: Counter China
  By Peter Bergen, CNN National Security Analyst June 26, 2013 -- Updated 1340 GMT (2140 HKT) (CNN) -- There is a one-word subtext to President Obama's trip to Africa: China. After 9/11, the United States became embroiled in more than a decade of wars in Asia and the Middle East. As a result, U.S. engagement in Latin America and Africa largely atrophied. Meanwhile, China saw an opportunity. China has now displaced the United States as the largest trading partners of two key Latin American countries, Brazil and Chile. Peter Bergen China's economic rise is particularly marked in Africa; it quietly surpassed the United States as the continent's largest trading partner four years ago. [Africa] [China confrontation]
• ROK president arrives in Beijing for visit
  Xinhua, June 27, 2013 Republic of Korea President Park Geun-hye arrived in Beijing on Thursday morning, kicking off her first state visit to China since taking office in February. Republic of Korea President Park Geun-hye arrived in Beijing on Thursday morning, kicking off her first state visit to China since taking office in February. Republic of Korea President Park Geun-hye arrived in Beijing on Thursday morning, kicking off her first state visit to China since taking office in February. During her four-day tour, Park will hold talks with Chinese President Xi Jinping, who invited her to visit China, and meet with Chinese Premier Li Keqiang and top legislator Zhang Dejiang. The two sides will exchange views on bilateral ties and major international and regional issues of common concern, according to the Chinese Foreign Ministry. Besides Beijing, Park will visit Xi'an, capital city of Shaanxi Province in western China. [China SK]
• PRISM scandal turns spotlight on US firms in China
  By Chen Boyuan China.org.cn, June 27, 2013 Edward Snowden's revelations of how the NSA's PRISM project has been monitoring citizens' electronic communications is reminiscent of the world depicted in George Orwell's classic novel "1984." Snowden's revelations informed us how our personal data is being stolen by the NSA and stored in its giant data centers. We now also know that China has been a victim of PRISM's surveillance program, a fact which has caused considerable disquiet in China. In one of its commentaries, China's state-run news agency Xinhua said that America "has turned out to be the "biggest villain of our age." But the situation has also given Beijing food for thought. U.S. high-tech companies maintain an expanding presence in China and the so-called "group of eight" U.S. companies, Cisco, IBM, Google, Intel, Apple, Qualcomm, Oracle and Microsoft have a close relationship with such key Chinese sectors as the government and military. Thanks to this relationship, U.S. intelligence agencies would have little difficulty in gathering information from China. It has been reported that Microsoft and Google are among a number of companies participating in the PRISM program, and they have apparently been asked for users' data by the U.S. government. The PRISM incident has also led to calls for Chinese companies, especially telecom operators, to reduce their reliance on Cisco in what has been termed a "de-Cisco movement." It will take time, however, for domestic products to completely replace U.S. imports. There have also been calls for the establishment of a Chinese national information security agency. [Espionage]
• HK: US got Snowden's middle name wrong
  China.org.cn, June 27, 2013 In explaining why White House's request for the arrest of National Security Agency whistleblower Edward Snowden was turned down, Hong Kong's Secretary for Justice Rimsky Yuen said Tuesday that the U.S. government got Snowden's middle name wrong in the documents it had submitted seeking his arrest. Hong Kong immigration records had listed Snowden's middle name as Joseph, but the U.S. government used the name James in some documents, Yuen said. [Snowden]
• Park Embarks on China Trip
  President Park Geun-hye embarks on a four-day state visit to China on Thursday. It begins with a meeting with her Chinese counterpart Xi Jinping in Beijing, followed by a joint statement marking the 21st anniversary of diplomatic relations this year. "In addition to the areas of diplomacy and security, we will see the fruits of mutual investments in the private sector, while a wide variety of agreements and memoranda of understanding will be signed in the fields of economy, society and culture," a Cheong Wa Dae official said. [China SK]
• Park Geun-Hye’s China Challenge
  By Peter Hayes June 26, 2013 Is it possible for President Park to get China to commit to more than a symbolic statement regarding North Korea’s nuclear weapons program during her upcoming meeting with President Xi Jinping? According to Peter Hayes, “The answer is definitely yes. South Korea can propose at least three types of “three party talks” at the Summit that would put South Korea in the driver’s seat, and break the deadlock with North Korea. These are all consistent with the eventual resumption of the Six Party Talks, although they do not depend upon this happening to have positive effects.” He goes on to state that, “At this juncture, only President Park can provide the necessary leadership to move this agenda forward.” Whether South Korean President Park Geun-hye’s “trust politik”[i] is merely a slogan or a solid policy strategy will be revealed in the summit between South Korean President PGH and Chinese President Xi Jinping on June 27, 2013. [China SK] [Park Geun-hye]
• Report: China's UAVs Could Challenge Western Dominance
  Jun. 25, 2013 - 06:00AM | By WENDELL MINNICK TAIPEI — Folks wandering past the model of the Pterodactyl UAV at the Paris Air Show last week were probably unaware that this was China’s first unmanned combat aerial vehicle (UCAV) on display at an international defense exhibition. The model, also known as the Wing Loong, could be the first step by the Aviation Industry Corporation of China (AVIC) to break the West’s grip on the UAV market by providing affordable and reliable alternatives that also bypass US embargoes, sanctions and regulations. This is particularly the case for African and Middle Eastern countries to which the US is legally constrained from selling arms, or in the case of Israel, refuses to do so. A report issued by Kimberly Hsu, policy analyst for military and security affairs at the US-China Economic and Security Review Commission, “China’s Military Unmanned Aerial Vehicle Industry,” warns China’s inexpensive and multifunctional unmanned aerial systems are poised to steal the international UAV market away from the US and Israel. [UAV] [Arms sales] [China rising] [Aerospace]
• No delay in Snowden case: HK gov't
  China.org.cn, June 26, 2013 Secretary for Justice Rimsky Yuen has refuted claims that the Hong Kong Government deliberately delayed or obstructed extradition procedures in relation to Edward Snowden. Mr Yuen told the media today that to issue a provisional warrant of arrest, the alleged offences would have to satisfy the dual criminality requirement under Hong Kong law. The Government has acted in full accordance with both the Fugitive Offenders Ordinance and the extradition treaty signed with the US in 1996, he said. Hong Kong's Department of Justice wrote to the US Department of Justice on June 20 and 21, seeking clarification of certain legal and evidential matters, including Mr Snowden's full name and passport number, details on the charges, and what evidence would be relied on for prosecution. He said without this requested information, the department was unable to determine whether the charges fell within the scope of the extradition agreement. It also sought clarification on whether US government agencies have hacked into Hong Kong computer systems as reported in the media, as this will affect the department’s consideration of whether the allegations against Mr Snowden are of a political nature, he said. As US authorities still have not replied to requests for further information and clarification, the Hong Kong Government had no legal basis to ask the court to issue an arrest warrant, nor to stop Mr Snowden from leaving Hong Kong, he said. [Snowden] [Hacking]
• China’s next chapter: Tech, manufacturing, and innovation
  McKinsey partners explore China’s coming technology transformation, the challenges facing manufacturers, and an exciting new wave of innovative enterprise sparked by high mobile penetration and social media. [China rising] [Innovation]
• The South China Sea: Evolution of or Disregard for International Law?
  By Huy Duong and Tuan Pham June 25, 2013 This article is a response to The South China Sea: What China Could Say by Mark Valencia, published on May 7, 2013. Mark Valencia's rejoinder to this response is posted below. Huy Duong and Tuan Pham analyze statements that Mark Valencia, in his article The South China Sea: What China Could Say, asserts that China could potentially issue in order to ‘clarify its position regarding its maritime claims and actions in the South China Sea.' Huy Duong and Tuan Pham conclude that these statements show that China’s stance is at odds with the current regime of international law in a way that cannot be addressed by rhetoric or justified as evolution of international law. [South China Sea]
• Interview: Xi-Obama summit successfully reaffirms U.S.-China ties: Brzezinski
  English.news.cn | 2013-06-10 10:16:54 | Editor: An by Xinhua Writer Ran Wei WASHINGTON, June 9 (Xinhua) -- The summit between Chinese President Xi Jinping and U.S. President Barack Obama was a "successful reaffirmation of the special relationship" between Beijing and Washington, said former U.S. National Security Advisor Zbigniew Brzezinski in an exclusive interview with Xinhua on Sunday. Brzezinski's comment came after the two-day summit, the first of its kind between the two leaders, concluded in the Sunnylands estate in California on Saturday. The former U.S. national security advisor under the Carter administration told Xinhua via phone that he was encouraged by the fact that both leaders, "guided by a sense of awareness how important this relationship is to the entire world," were able to discuss issues "in a thoroughly business-like fashion and with a constructive effect." "So I consider this summit to be one of the more important ones in the modern American-Chinese history," Brzezinski noted. [Obama_Xi13]
• Calls Grow in China to Press Claim for Okinawa
  Jane Perlez 13 June, 2013 – New York Times BEIJING — A group of Chinese scholars, analysts and military officials convened on a recent morning in a spartan schoolroom to draw attention to China’s simmering territorial dispute with Japan. Participants spoke in urgent tones. Reporters took notes. A spirit of solidarity reigned. But the deliberations were not about the barren rocks in the East China Sea that are known as Diaoyu in China and Senkaku in Japan and that the two nations have been sparring over with competing naval patrols. [Territorial disputes]
• Why China might be a better superpower
  Unlike the US, China does not have a substantial history of invading and subjugating the inhabitants of far-flung lands. Last Modified: 25 Jun 2013 14:14 "The nations which today own the world's resources fear the rise of China and wish to postpone the day of that rise." - Rabindranath Tagore, 1915 Until the mid-20th century, China suffered what has been termed as the "Century of Humiliation" - a period of subjugation and oppression by Western military powers (as well as the Japanese). During this time Western imperialists flooded the country with drugs, raped and murdered its subjects with impunity and - due to both insatiable greed and abject ignorance to concepts such as culture and history - wantonly desecrated the priceless monuments of ancient Chinese civilisation. At the outset of this period - when hordes of English soldiers destroyed Beijing's ancient Summer Palace in an orgy of looting and arson - Major General Charles Gordon said, "You can scarcely imagine the beauty and magnificence of the places we burnt" - which in many ways was emblematic of the entire carnivorous project of Western imperialism in Asia, Africa and Latin America. Today, however, Rabindranath Tagore's prophecy about China seems to have come to fruition, and the modern heirs to rapacious criminals such as Gordon now openly lament their fear of rising Chinese power. [Hegemony] [China rising]
• Commentary: Washington owes world explanations over troubling spying accusations
  English.news.cn 2013-06-23 11:19:50 • Edward Snowden has put Washington in a really awkward situation. • In the past few months, US politicians have thrown out Internet spying accusations against China. • At the moment, Washington is busy with a legal process of extraditing whistleblower Snowden. by Ming Jinwei BEIJING, June 23 (Xinhua) -- Edward Snowden, a U.S. intelligence contractor who divulged some of the most secretive spying activities of the U.S. government, has put Washington in a really awkward situation. In the past few months, U.S. politicians and media outlets have thrown out Internet spying accusations one after another against China, trying to make it as one of the biggest perpetrators of Internet spying activities. And those claims were even highlighted during a highly anticipated summit between Chinese President Xi Jinping and his U.S. counterpart Barack Obama held earlier this month in California, which had been designed to help the world's two biggest economies to build a new type of major power relations. All this has seemed to go relatively well until the revelation of the U.S. National Security Agency's PRISM surveillance program. According to Snowden, the U.S. government has engaged in wide-ranging dubious spying activities not only on its own citizens, but also on governmental, academic and business entities across the world. Latest reports from Hong Kong-based South China Morning Post, which seems to have access to Snowden after he fled to the Chinese territory, revealed that Washington has hacked into the computer systems of major Chinese telecom carriers and one of the country's top universities. These, along with previous allegations, are clearly troubling signs. They demonstrate that the United States, which has long been trying to play innocent as a victim of cyber attacks, has turned out to be the biggest villain in our age. [Surveillance] [Hacking] [Cyberespionage]
• Why China is willing to talk to the Taliban
  The Uighur insurgency and economic stakes make Beijing increasingly keen to see a political settlement that ensures a stable balance of power in Afghanistan by Andrew Small June 22, 2013Gulf News Hamid Karzai’s derailment of this week’s planned US peace talks with the Taliban may have been a disappointment to Washington’s hopes of ending its longest war - but it disappointed Beijing, too. China welcomed the breakthrough in the Qatar process, and sees a political settlement in Afghanistan as increasingly important for its economic and security interests in the region. As a result, China’s support for reconciliation between Kabul and the Taliban has become a fixture of its burgeoning diplomatic activity on Afghanistan’s post-2014 future. Over the last year, China has been expanding its direct contacts with the Taliban and sounding them out on security issues that range from separatist groups in the Chinese region of Xinjiang to the protection of Chinese resource investments, according to interviews with officials and experts in Beijing, Washington, Kabul, Islamabad and Peshawar. While Beijing would like to see the reconciliation talks succeed in preventing Afghanistan from falling back into civil war, it is not counting on their success, and thus is preparing to deal with whatever constellation of political forces emerges in Afghanistan after the United States withdraws. [China global strategy] [Afghanistan]
• Foreign Ministry to hold strategic talks with DPRK
  (China Daily)08:18, June 18, 2013 Vice-Minister of Foreign Affairs Zhang Yesui and his counterpart of the Democratic People's Republic of Korea will hold strategic talks on Wednesday in Beijing, the Foreign Ministry said on Monday. Zhang and Kim Kye-gwan, the DPRK's first deputy foreign minister, will discuss Beijing-Pyongyang ties and the situation on the Korean Peninsula, Foreign Ministry spokeswoman Hua Chunying said at a daily briefing. It is rare for the foreign ministries of the two countries to hold strategic talks because contacts between the two ruling parties are more common, observers said. [China NK]
• One man, one country, two systems
  By He Shan China.org.cn, June 21, 2013 It remains to be seen whether Edward Snowden, who revealed in Hong Kong details of the U.S's Prism spying program, will be accepted as an asylum seeker by Iceland. It will also be interesting to see what action China may take as Iceland ponders the Snowden asylum question. Now that Snowden is at the center of a global media firestorm, he represents both an opportunity and a challenge to the Chinese government, especially in the immediate aftermath of the summit meeting in California between Presidents Xi Jinping and Barack Obama where cyber security was of particular concern to the American side. [Surveillance] [Hong Kong]
• China urges resumption of six-party talks
  Xinhua, June 20, 2013 China on Thursday expressed hope for resumption of the six-party talks at an early date. At a regular press briefing, Foreign Ministry spokeswoman Hua Chunying, said, "We hope that relevant parties can seize the opportunity and meet each other half way, so as to create conditions for an early resumption of the six-party talks." Hua's comments came after Kim Kye Gwan, First Vice Foreign Minister of the Democratic People's Republic of Korea (DPRK), said on Wednesday at the strategic dialogue between foreign ministries of China and the DPRK that the DPRK is ready to join in any form of talks, including the six-party talks. [Six Party Talks]
• Us-China: Joined At The Hip
  by Peter Hayes June 18, 2013 Peter Hayes writes “The tug of war over Taiwan and the contest between the US and Chinese military to deny access to the other in China’s coastal zone and the western Pacific States is……simply the most dangerous possible conflict in the region….Yet even here, we find that China and the United States are joined at the hip in the most horrible way imaginable.” The US Department of Defense’s Early Bird (these days, you can read recent editions on line) provides a bird’s eye view of the world from press clippings selected by the US military for the US military. If you want to know what’s important to the US military on a given day, read Early Bird. On August 25, 2012, I opened Early Bird to find in the Asia Pacific Section: [F&E]
• China and UNSC resolutions on Korea
  by Zhang Guihong June 18, 2013 In this Policy Forum Zhang Guihong argues that United Nations Resolutions on North Korea, while necessary, will not solve the nuclear issue on the Korean Peninsula since resolutions do not address U.S.-North Korea relations. Zhang also spells out three basic principles China uses to deal with the security dilemma. The principles are derived from China’s fundamental interests on the Korean Peninsula: maintain peace and stability; denuclearize the peninsula; and use peaceful dialogue to resolve the issue. Zhang Guihong is the Executive Director of the United Nations Research Center at Fudan University in Shanghai. This article came from a “United Nations Report” sponsored by China’s Ministry of Education and is reprinted with the author’s permission.
• In New Book, Former US Army Officer Warns of Romancing China
  Jun. 16, 2013 - 11:50AM | By WENDELL MINNICK TAIPEI — In 1989, just months before the Tiananmen Square massacre, a US Army captain jumped with the People’s Liberation Army’s (PLA) 43rd Airborne Division in Kaifeng, China. The jump would be the last Larry Wortzel would enjoy with the PLA. As assistant Army attaché to the U.S. Embassy in Beijing, his next encounter with China’s airborne was at Tiananmen Square. The “June 4th Incident” tore apart the dreams of many in Washington of a budding cooperative military relationship with the PLA. Estrangement was further aggravated when the US sent two aircraft carrier groups to the waters off Taiwan during the 1996 Taiwan Missile Crisis. The appearance of the carrier groups embarrassed and enraged senior political and military leaders in Beijing. The ups-and-downs of US-China military relations, the history of China’s military modernization effort, and Wortzel’s frustration with American academia’s continuing efforts to downplay China’s military capabilities as nothing more than a “nuisance,” are all illustrated in his new book, “The Dragon Extends its Reach: Chinese Military Power Goes Global.” Defense News was given an advanced copy of the manuscript prior to publication. [China confrontation]
• China, North Korea will hold talks this week after new Pyongyang offer of dialogue with US
  Published June 17, 2013 Associated Press BEIJING – China says it will hold a strategic dialogue with North Korea this week following Pyongyang's surprise offer of new talks with the U.S. The Foreign Ministry announced Monday that Vice Foreign Minister Zhang Yesui would meet with North Korean First Vice Foreign Minister Kim Kye Gwan on Wednesday in Beijing. Ministry spokeswoman Hua Chunying said the two would discuss bilateral relations and the situation on the Korean Peninsula. North Korea on Sunday proposed "senior-level" talks to ease tensions, which spiked this year over Pyongyang's long-range rocket launch and February nuclear test. The offer is expected to be discussed in meetings this week in Washington involving U.S., Japanese and South Korean officials. Hua said China hopes the two sides can work toward restarting broader, six-party talks on the nuclear issue.
• Xi, Putin discuss ties, Korean Peninsula
  Xinhua, June 16, 2013 President Xi Jinping and his Russian counterpart Vladimir Putin discussed bilateral ties and the situation on the Korean Peninsula in a telephone conversation Saturday. Xi said the current China-Russia relationship is advancing to a higher level. The two sides are actively implementing the important consensus and agreements reached at the leaders' summit in Moscow in March, Xi said. High-level exchanges between Russia and China are becoming more frequent and cooperation between the two nations in the fields of investment, energy, culture, law enforcement, security, etc has gained positive headway, Xi said.
• Wu touts Taiwan’s RCEP participation
  Wu touts Taiwan’s RCEP participationKMT Honorary Chairman Wu Poh-hsiung (left) and mainland Chinese leader Xi Jinping shake hands before talks June 13 in Beijing. (CNA) •Publication Date:06/14/2013 •Source: Economic Daily News Taiwan is looking to take part in the Regional Comprehensive Economic Partnership as a way of safeguarding its substantial Asia-Pacific economic interests, ruling Kuomintang Honorary Chairman Wu Poh-hsiung said June 13. Wu made the remarks while meeting with mainland Chinese leader Xi Jinping in Beijing. Driven by the Association of Southeast Asian Nations, the RCEP comprises 16 economies, including Australia, India, Japan and mainland China. If realized, the trading bloc will permit a greater flow of goods and services and encompass a combined economic output of US$20 trillion, or almost one-third of the global economy. Irrespective of which political party is in government, the people of Taiwan are always hoping to take part in a broad range of international activities, Wu said. The KMT believes that expanded international space for Taiwan is a boon for the stable and peaceful development of cross-strait ties, he added. [Straits] [RCEP] [FTA]
• N. Korean leader calls for stronger relations with China
  North Korean leader Kim Jong-un called for building stronger relations with China as he sent a happy birthday message to Chinese President Xi Jinping, state media said Saturday.
• U.S.-China Relations and America’s Alliances in Asia
  By: Sheena Chestnut Greitens On June 7-8, President Barack Obama met with Chinese President Xi Jinping at the Sunnylands estate in southern California. Their “official working visit” followed a year of political transition in both countries, including President Obama’s re-election and Xi Jinping’s ascension to the head of China’s party-state, as well as changes in leadership around the Asia-Pacific region. In advance of the summit, observers looked to the meeting as a less formal interaction in which the two leaders could exchange views, develop a personal rapport, and begin to manage the mix of competition and cooperation that have characterized the U.S.-China relationship. Discussions surrounding the summit reflected larger conversations within the policy community in Washington about the importance of a cooperative and stable U.S.-China relationship for regional and global peace and stability. [Obama_Xi13]
• Top N.Korean Negotiator 'to Visit China, Russia'
  Kim Kye-gwan Kim Kye-gwan North Korean Vice Foreign Minister Kim Kye-gwan will soon visit China and Russia, it was reported on Tuesday. A North Korea source said Kim is to meet key figures in both governments as part of an attempt by the isolated country to diversify channels of dialogue. Kim was North Korea's leading negotiator with the U.S. since the early 1990s and in the six-party denuclearization talks. A senior government official here said, "Although Kim stepped down as the chief negotiator for North Korea in the six-party talks, he is still overseeing talks with the U.S. and negotiations on denuclearization."
• China Setting up First University Campuses Abroad
  By DIDI TANG Associated Press BEIJING June 11, 2013 (AP) In the capital of tropical Laos, two dozen students who see their future in trade ties with neighboring China spent their school year attending Mandarin classes in a no-frills, rented room. It's the start of China's first, and almost certainly not its last, university campus abroad. "There are a lot of companies in Laos that are from China," said 19-year-old Palamy Siphandone. She said she chose the Soochow University branch campus after hearing it would offer scholarships to students with high scores. "If I can speak Chinese, I get more opportunities to work with them," she said in a telephone interview during a trip to the eastern Chinese city of Suzhou — the home city of Soochow University. Education officials in China are promoting the notion of the country's universities expanding overseas, tapping new education markets while extending the influence of the rising economic power. China so far has been on the receiving end of the globalization of education, with Western institutions rushing to China to set up shop. Now it's stepping out. [China rising] [Softpower] [Education]
• Yangtze River water runs through Yellow River
  Xinhua, June 11, 2013 Water from the lower reaches of the Yangtze River, China's longest and world's third longest river, was able to run through the lower reaches of the Yellow River, China's second longest river on Monday noon thanks to the progress of China's south-north water diversion project. Water from the lower reaches of the Yangtze River, was able to run through the lower reaches of the Yellow River on Monday noon thanks to the progress of China's south-north water diversion project. [File photo] That was a landmark success of the first phase of the eastern route of the south-north water diversion project, which kicked off in 2002 and is expected to send water in the third quarter of 2013. The water from the Yangtze River is expected to arrive in the Datun Reservoir in east China's Shandong Province, the northern end of the project, within 72 hours, according to the provincial construction management bureau of the south-to-north water diversion project.
• A new type of US - China relationship
  Melkulangara BHADRAKUMAR | 10.06.2013 | 17:00 The single biggest stakeholder in the outcome of the China-United States weekend summit in California was not Japan, but North Korea. It is more than a coincidence that Pyongyang agreed to hold a meeting with Seoul the day after presidents Barack Obama and Xi Jinping wrapped up their talks. The North Koreans saw the writing on the wall when an exuberant Obama described his talks as «terrific» and Xi’s foreign policy advisor Yang Jiechi summed up that the two presidents «blazed a new trail» in the California desert that could be called «strategic, constructive and historic». Yang’s comments are important because he is not a professional politician and is trained to measure words by coffee spoons. Even Yang got carried away momentarily. He said, «The two presidents agreed to build a new model of major country relationship between China and the United States based on mutual respect and win-win cooperation. We have to stay each other’s partners, not rivals». The summit was rich in symbolism, as an American and Chinese leader never before got together in an informal setting and clocked eight hours of talks, had a private dinner cooked by a celebrity chef, and took a 50-minute walk with only their translators. That the summit took place at Obama’s instance hardly three months into Xi’s presidency is extraordinary. But having said that, amidst the outpouring of polite phrases, it is difficult to quantify what has been accomplished at the summit. [Obama_Xi13]
• The need for a peace regime on the Korean peninsula
  Posted on : Jun.10,2013 14:08 KST North Korea and the US still at loggerheads over the issue that could finally end the Cold War standoff By Jin Jingyi, professor at Peking University It has now been 60 years since an armistice agreement ended the combat phase of the Korean War. This means that for the last 60 years, we have failed to sign a peace treaty. The issue of North Korea’s nuclear program, which surfaced around the time the Cold War was coming to an end, has also remained unresolved for two decades. This is one of the reasons no peace regime has been established on the Korean peninsula. In the six-party talks framework adopted to address the issue, North Korea consistently demanded a peace regime before it gave up its nuclear program, while South Korea and the United States argued that denuclearization had to come first. The argument from Pyongyang was that the nuclear issue would take care of itself if a peace treaty were signed, since this would remove security concerns and issues with its relations with Washington and Seoul. From this standpoint, a peace treaty would have been sufficient, tantamount to a peace regime in and of itself. North Korea is arguing that everything will go away with a peace treaty, and may understand just how difficult a proposition a peace treaty is so long as current issues remain unresolved. This is the gist of the argument from Seoul and Washington, which claim that a resolution to the nuclear issue would be a signal that diplomatic relations have been normalized. So it may be fair to say that a resolution to the nuclear issue and a peace treaty are equally necessary. [US NK policy] [Peace treaty]
• Remarks by President Obama and President Xi Jinping of the People's Republic of China After Bilateral Meeting
  Sunnylands Retreat Rancho Mirage, California 8:09 P.M. PDT PRESIDENT OBAMA: Everybody ready? Well, I know we’re a little behind, but that’s mainly because President Xi and I had a very constructive conversation on a whole range of strategic issues, from North Korea to cyberspace to international institutions. And I’m very much looking forward to continuing the conversation, not only tonight at dinner but also tomorrow. But I thought we’d take a quick break just to take a question from both the U.S. and Chinese press. So what I’ll do is I’ll start with Julie Pace and then President Xi can call on a Chinese counterpart. Q Thank you, Mr. President. How damaging has Chinese cyber-hacking been to the U.S.? And did you warn your counterpart about any specific consequences if those actions continue? And also, while there are obviously differences between China’s alleged actions and your government’s surveillance programs, do you think that the new NSA revelations undermine your position on these issues at all during these talks? And President Xi, did -- PRESIDENT OBAMA: Why don’t you let the interpreter -- Q And President Xi, did you acknowledge in your talks with President Obama that China has been launching cyber attacks against the U.S.? [Obama_Xi13]
• At summit, US and China agree on North Korean denuclearization
  Posted on : Jun.10,2013 13:46 KSTModified on : Jun.10,2013 14:03 KST Chinese President Xi Jinping and US President Barack Obama wave at the end of their two-day summit, which was held at an estate in Rancho Mirage, California, June 8. The estate was built as a home for Walter and Leonore Annenberg, a prominent couple of former US diplomats. At their summit, Xi and Obama discussed forming a new, more cooperative relationship between the two powers. (AP/Newsis) But Chinese leader apparently unsuccessful in seeking a quick return to the six-party talks By Park Hyun, Washington correspondent in Rancho Mirage, California At their recent summit, US President Barack Obama and Chinese President Xi Jinping agreed not to recognize North Korea as a nuclear power and agreed to work together toward denuclearization of the Korean peninsula. However, the US stuck to its existing stance on resolving the North Korean nuclear issue, showing a negative attitude toward the idea of quickly resuming the six-party talks. Thomas Donilon, the national security advisor for the White House, met with reporters at the Westin Resort in Rancho Mirage, California, on June 8 after the two-day summit meeting between Obama and Xi was complete. “Last night at dinner we had a lengthy discussion about North Korea,” Donilon said. “[The two leaders] agreed that North Korea has to denuclearize; that neither country will accept North Korea as a nuclear-armed state; and that we would work together to deepen US-China cooperation and dialogue to achieve denuclearization,” said Donilon. In regard to this, Chinese foreign minister Yang Jiechi said, “the thing that is urgently needed now is to reopen talks as quickly as possible. Nevertheless, it appears that the two leaders were unable to come to an agreement about the six-party talks. [Obama_Xi13]
• At U.S.-China shirt-sleeves summit, formalities and suspicions were on display
  Evan Vucci/AP - President Obama and Chinese President Xi Jinping walked the grounds of the Sunnylands estate Saturday in Rancho Mirage, Calif., for a highly unusual one-on-one talk. The talk and the dress code were just about the only informal parts of the “informal” summit. By Philip Rucker, Monday, June 10, 10:32 AM E-mail the writer RANCHO MIRAGE, CALIF. — It was orchestrated as the shirt-sleeves summit, where President Obama, embarking on his second term with a strategic focus on Asia, and Chinese President Xi Jinping, starting his first year of a decade-long rule, might cool tensions between their rival nations and forge a comfortable friendship. But even before the leaders arrived for two days of high-stakes meetings here, some suspicions abounded. Xi and his delegation declined to stay at Sunnylands, the expansive desert estate hosting the summit, believing that it might be bugged by the Americans. Instead, the Chinese checked into a nearby hotel. [Obama_Xi13]
• China Can’t Be Contained; It Has to Be Accommodated
  Posted by John Cassidy At the start of the twentieth century, Britain, the superpower of the time, was faced with a strategic dilemma: what to do about a newly unified and nationalist Germany, which was rising fast economically and building up its military. One school of thought held that Germany could be accommodated within the existing international system; the other argument was that it needed to be confronted and contained. The hawks won out. During the Boer War, London threatened to blockade the German coast if Berlin intervened in favor of the Dutch settlers in South Africa. There followed a big arms race, as Germany, which had already been strengthening its marine capabilities, rushed to catch up with the Royal Navy, and Britain responded by constructing the dreadnoughts, a deadly family of steam-powered battleships. In 1907, Britain joined France and Russia in an alliance—the Triple Entente—against Germany and Austria-Hungary. [F&E]
• Is Sunnylands America’s Munich?
  China Matters Saturday, June 08, 2013 Nah. Just clickbaiting you. Despite the dim prospects for concrete results, the Sunnylands summit between Xi Jinping and Barack Obama has provoked a disproportionate frenzy of chinstroking among serious pundits. Much of it is along the lines of “the United States must not make nice with the PRC, thereby validating Xi’s ‘New Type of Great Power Relationship’ --basically peaceful coexistence—and legitimizing the regime.” This is something of a challenge, since Xi Jinping is clearly determined to reset US-PRC relations and US policy toward China towards engagement and negotiation and away from “confrontainment” (I think that’s a coinage of mine, at least as it applies to US China policy, but not sure) and coercive diplomacy. The certainty that Xi will try to engage with the United States and the possibility that he may even offer and deliver on some concrete inducements in order to achieve it (think North Korea and cyberwar) has provoked the American commentariat to put in its thinking caps in a heroic attempt to sustain and institutionalize US-PRC hostility despite Xi’s overtly conciliatory gestures. The subtext of the commentary seems to be an anxiety, either real or feigned, concerning China’s rise that, quite possibly, is not shared either by the PRC regime or US government. [Obama_Xi13]
• US data spy scandal hits Obama's pressure plan
  China.org.cn, June 9, 2013 The U.S. National Security Agency has developed a tool to analyze and map the intelligence it collects from computer and telephone networks, according to top-secret documents acquired by the British newspaper the Guardian. James Clapper, the U.S. director of national intelligence [File photo: Xinhua] The Guardian broke the news during the two-day meeting between Chinese President Xi Jinping and U.S. President Barack Obama in California and the news also comes amid the spying controversy involving U.S. Telecommunications giant Verizon. James Clapper, the U.S. director of national intelligence, admitted to the Guardian that the National Security Agency has used the data mining tool, called Boundless Informant, to keep track of the systems of companies including Google, Facebook and Apple in order to spy on their customers' online activities. The documents show that the U.S. government has developed a list of potential overseas targets for cyber-attacks in what is called the Offensive Cyber Effects Operations (OCEO) which "can offer unique and unconventional capabilities to advance U.S. national objectives around the world." According to the Presidential Policy Directive 20, OCEO refers to "operations and related programs or activities … conducted by or on behalf of the United States Government, in or through cyberspace, that are intended to enable or produce cyber effects outside United States government networks." The issue of cyber security took center stage at the recent summit meeting between presidents Xi and Obama, during which Obama wanted to put pressure on Xi over allegations of Chinese hacking. The Guardian's revelation has come at an embarrassing time for the U.S. side and will likely dent Obama's efforts. [Obama_Xi13] [Surveillance]
• Xi, Obama meet for 1st summit
  Xinhua, June 8, 2013 Chinese President Xi Jinping and his U.S. counterpart, Barack Obama, met Friday in this picturesque estate in Rancho Mirage, California, to exchange views on major issues of common concern. Obama received Xi upon his arrival, and the two heads of state greeted each other. At the beginning of the meeting, Xi thanked Obama for his invitation, saying that he was glad to hold talks with the U.S. president at Sunnylands. "Sunnylands is close to the Pacific Ocean, and China is just on the other side of the ocean," Xi said. Xi recalled his visit to the United States last year when he said that the vast Pacific Ocean has enough room to accommodate the development of two great powers in the world, namely China and the United States. [Obama_Xi13]
• 55% of Americans see China as ally or friendly nation
  A majority of Americans view China as either an ally or a nation friendly to the U.S., according to a poll taken ahead of the so-called G-2 summit meeting in California. The Gallup survey showed that 11 percent of U.S. people regard China as an ally and 44 percent as a country friendly to the U.S. Forty percent say it is either unfriendly (26%) or an enemy (14%), said the polling agency. It conducted phone interviews with a random sample of 1,529 adults, age 18 and older, across the U.S. from June 1-4. "Americans have mixed views of China, with few describing the emerging superpower as an ally or an enemy of the United States, but more viewing it as a friendly than an unfriendly nation," Gallup said. [F&E] [Public opinion]
• Let's Not Be Friends: Obama and Xi will work better together if they both acknowledge they don't trust each other.
  BY YAN XUETONG | JUNE 6, 2013 On June 7 and 8, President Barack Obama will meet with Chinese President Xi Jinping to "discuss ways to enhance cooperation" between the two countries. With Sino-U.S. relations in a state of deterioration ever since the December 2009 Copenhagen Climate Change Conference, the meeting couldn't come at a more important time. Both Beijing and Washington seem to believe that a lack of trust is the reason for this unfortunate state of affairs. During the 2008 presidential campaign, Obama argued, "we still have to do serious work if we are to create the level of mutual trust necessary for long-term cooperation." Chinese President Hu Jintao reiterated that sentiment during a meeting with Obama in June, speaking of the need for "mutual trust" to bring the two countries closer together. Fortunately, the task of getting the Sino-U.S. relationship back on track may not be so daunting. There are thousands of examples of strategic cooperation without mutual trust between major powers throughout human history. Britain established strategic cooperation with the Soviet Union in World War II based on their common interest in fighting against Nazi Germany -- even though Winston Churchill detested Joseph Stalin. China and the United States developed it in 1972, even though Mao Zedong and Richard Nixon did not trust each other. Faced with several decades of military confrontation, Mikhail Gorbachev and Ronald Reagan agreed to reduce their nuclear arsenals in 1988, which heralded the end of the Cold War. And Jiang Zemin and George W. Bush cooperated on a counter-terrorism campaign just a few months after the collision of Chinese and U.S. military aircraft over the South China Sea in April 2001. Indeed, cooperation is the norm rather than the exception. [US China] [Obama_Xi13]
• Railway linking West China and Pakistan on the cards
  By Li Xiaohua China.org.cn, June 7, 2013 Pakistan is willing to build a highway and a railway linking western China and running through Pakistan from south to north. This construction will create a Pakistan-China economic corridor, said Pakistan's newly sworn in Prime Minister Nawaz Sharif -- elected for the third time -- in his inauguration speech on June 5. In addition, the Chinese Foreign Ministry stated on June 6 that the construction of the corridor was the most important consensus reached by the two parties during Premier Li Keqiang's visit to Pakistan last month. Hong Lei, spokesman for China's Foreign Ministry, said that China will work with Pakistan to step up the planning and construction of the project and make it the highlight of cooperation between the two countries. The project connects Kashghar in China's Xinjiang Uygur Autonomous Region to the Pakistani port of Gwadar. [Railways] [Gwadar]
• Nicaragua gives Chinese firm contract to build alternative to Panama Canal
  Project will reinforce China's growing influence on global trade and weaken US dominance over a key shipping route Jonathan Watts and agencies guardian.co.uk, Thursday 6 June 2013 17.41 BST Panama Canal Nicaragua's new waterway will be a higher-capacity alternative to the 99-year-old Panama Canal (pictured), which is currently being widened at the cost of $5.2bn. Photograph: Danny Lehman/Corbis Nicaragua has awarded a Chinese company a 100-year concession to build an alternative to the Panama Canal, in a step that looks set to have profound geopolitical ramifications. The president of the country's national assembly, Rene Nuñez, announced the $40bn (£26bn) project, which will reinforce Beijing's growing influence on global trade and weaken US dominance over the key shipping route between the Pacific and Atlantic oceans. The name of the company and other details have yet to be released, but the opposition congressman Luis Callejas said the government planned to grant a 100-year lease to the Chinese operator. The national assembly will debate two bills on the project, including an outline for an environmental impact assessment, on Friday. Nicaragua's president, Daniel Ortega, said recently that the new channel would be built in the north of the country, through the waters of Lake Nicaragua.
• China Frustration With North Korea Offers Hope for U.S.
  By AP / Matthew PenningtonJune 06, 2013Add a Comment (WASHINGTON) — China’s growing frustration with longtime ally North Korea offers the United States a glimmer of hope about a once unthinkable prospect: holding discussions between Washington and Beijing about what to do if the government in Pyongyang collapses. There is no sign that the North Korean regime is in danger or that U.S. President Barack Obama and Chinese President Xi Jinping will discuss that possibility when they meet this week in California. Any such talk would alarm North Korea if word got out. But in China, talk of a North Korean collapse is no longer the taboo subject it once was. Academics are increasingly willing to discuss it and a former top U.S. general said he has detected, during informal meetings, a willingness of Chinese officials to consider such discussions. That reflects internal debate in China and dismay about North Korean brinkmanship in the aftermath of rocket and nuclear tests this winter that defied China, which supplies the North with crucial food, energy and diplomatic support. [China NK]
• China launches probe into EU wines
  China.org.cn, June 6, 2013 China imported 290 million liters of wine from the EU last year. [File photo] China announced the launch of an anti-dumping and anti-subsidy investigation into wines imported from Europe, a day after the European Union imposed punitive tariffs on Chinese solar products. The investigation is aimed at answering the petition of domestic wine producers last year. Chinese wine manufacturers claimed that EU's wine imports had received unfair government subsidies and were causing damage on China's wine industry, according to a statement by the Ministry of Commerce (MOFCOM). MOFCOM said China has always been cautious about the use of trade remedy measures. "We have noticed a relatively fast growth of wine imports from the EU in recent years and we will conduct a strict investigation in accordance with relevant laws," said the ministry. China imported a total of 430 million liters of wine last year, in which 290 million liters were imported from the EU, according to data from the General Administration of Customs of China. France, Spain and Italy are the top three EU wine exporters to China. France alone exported 170 million liters of wine to China last year. [Wine] [Dumping]
• China Benefits From Bush's Folly
  Posted: 06/04/2013 2:49 am Imperialism doesn't pay. Of course, it never did for the common folk recruited to invade another country, or the natives they conquered. But still, the thought persists that occupying foreign lands -- particularly as in the case of Iraq, soaked in oil as well as blood -- is a winner. True, Saddam Hussein's Iraq, with its nonexistent WMDs and virulent hostility to the religious fanatics that attacked us on 9/11, was a false target for a war on terror. And yes, a Shiite-run Iraq is now closely allied with co-religionists in Iran and Lebanon, whereas Hussein had once been our ally in containing the power of the ayatollahs. But "we" now control Iraq's vast oil reserves, some hawks will still argue in the manner of the idiot savant Paul Wolfowitz, who as then-deputy defense secretary promised that the oil would pay for the war. Only they, like he, have once again been proved wrong. That myth of wealth following the flag can finally be put to rest with the report in Sunday's New York Times headlined "China Is Reaping Biggest Benefits of Iraq Oil Boom." What the Chinese have demonstrated is that in the modern world, to the conquerors do not go the spoils. The United States has spent well over $3 trillion on its Iraq War, while suffering and inflicting much mayhem. Yet it is the studiously neutral government of China that has most clearly benefited from George W. Bush's folly. Beijing refused to play the militarist's game but coolly picked up the winner's prize. [Iraq] [Imperialism] China rising]
• MAC pushes for cross-strait representative offices
  MAC pushes for cross-strait representative officesMAC Minister Wang Yu-chi is all smiles about the prospects of setting up cross-strait representative offices for the benefit of the people of Taiwan and mainland China. (CNA) •Publication Date:06/04/2013 •Source: Taiwan Today The ROC government is committed to establishing cross-strait representative offices as they will benefit people from Taiwan living and working on the other side of the strait, Mainland Affairs Council Minister Wang Yu-chi said June 3. “This approach is based on the practical needs of providing close care and services for our people in mainland China,” Wang said. “Both sides of the Taiwan Strait view the main functions of these representative offices as promoting culture, economic activity, education, trade and people-to-people exchanges.” [Straits]
• When – not if – China overtakes the US, normality will have returned
  Hamish McRae The possibility that China's economy will outgrow America's in the next three years gives added spice to Obama's meeting with President Xi Jinping In the late 1880s, something extraordinary happened. The United States passed China to become the world’s largest economy, dislodging China from the pole position it had held since 1500 – prior to that, India had been the world’s largest, with an economy more than double the size of the Roman Empire at the time of Christ, with China at number two. Some time soon, probably within the next decade, that switch of the 1880s will be reversed. China will pass the US in economic size, though, of course, in terms of living standards and technical competence it will remain far below. It is conceivable that China will, at least on some measures, pass the US within the next three or four years; if that were so, the loss of leadership might even occur under the presidency of Barack Obama. [Decline] [China rising]
• ROK military leader visits China
  China Daily, June 5, 2013 Jung Seung-jo, chairman of the Republic of Korea's Joint Chiefs of Staff, visited Beijing on Tuesday — the first such visit by an ROK military chief in six years — after Monday's meeting between foreign affairs officials from the two countries. Observers said the series of visits by ROK officials to China is to enhance their comprehensive ties and to pave way for ROK President Park Geun-hye's visit at the end of June. [China SK]
• Xi-Obama summit set to redefine relations
  By Wang Wei China.org.cn, June 4, 2013 Jia Qingguo, professor and associate dean of the School of International Studies at Peking University. [File photo] The upcoming meeting between Chinese President Xi Jinping and his American counterpart President Barack Obama provides a great opportunity for the leaders to explain their national strategies and explore a new type of relationship between the world's major powers, said Jia Qingguo, a professor and associate dean of the School of International Studies at Peking University. On June 7-8, Xi will attend a summit meeting with Obama at Sunnylands in Rancho Mirage, California and it will be the first such meeting since both nations completed their most recent leadership transitions. Commenting on the context and likely content of the meeting, Jia said: "This unique informal meeting provides a relaxed environment for the two leaders to have an in-depth, top-level exchange of views, and helps build up a good personal relationship. Their face-to-face talks on detailed problems, such as trade frictions, the Korean Peninsula nuclear issue and Internet security, will promote the building of a new type of relationship between the two major countries." [Chinese IR] [Sterile]
• The Case of Smithfield Pork
  by VIJAY PRASHAD Hong Kong. The IMF cut China’s growth outlook from 8 per cent to 7.75 per cent for the coming year. These are still the strongest figures to be anticipated for any of the leading industrial countries so the leadership in Beijing is not immediately anxious. In Beijing last week the IMF’s David Lipton noted that this forecast cut came because the IMF believes that absent “continued liberalisation and reduced governmental involvement in the economy” and with a consequent “greater role for market forces,” a financial crisis might strike China. Such words are simply formulaic. The real problem, Lipton conceded, is that China’s leadership had committed the country to far too much “social financing” – namely credit from the state-owned banking sector and commercial lenders – that rose by almost 60 per cent this year. This credit growth is largely in capital investment, although some of it is sloshing around China’s vaunted shadow banking sector. “Growth has become more dependent – perhaps too dependent – on the continued expansion of investment,” said Lipton. The IMF warns that too much investment by Beijing in its own country will create unbalanced growth. A Goldman Sachs reports from last year, however, disagrees. Investment flow is important, says Goldman, but so too is a country’s capital stock, its residual assets – “On this metric, China still has a long way to go. Its capital stock/worker is only 6 per cent of Japan’s level and 16 per cent of Korea’s.” In other words, per capita investment in infrastructure is not at levels that are seen as normal in the Global North and in its East Asian satellites. But perhaps the ink on the IMF reports suggest something other than what is on the page. [ODI] [China bashing]
• Exclusive: China tried to convince N.Korea to give up nuclear tests -source
  By Benjamin Kang Lim BEIJING | Tue Jun 4, 2013 1:55am EDT (Reuters) - China told an envoy of North Korean leader Kim Jong-un that Pyongyang should stop conducting nuclear and missile tests, but the North showed little sign of heeding the request, said a source with knowledge of the talks held late last month. Kim dispatched Choe Ryong-hae, vice chairman of the country's top military body, to explain North Korea's recent actions but he got a lukewarm reception from his Chinese hosts, said the source, who has close ties to Beijing and Pyongyang.
• A power test for the U.S. and China
  By David Ignatius, Published: June 1 U.S. officials describe a common frustration in dealing with China over the past decade. Beijing wants to be recognized as a rising economic power but refuses to be an active partner in maintaining security. Beijing has seemed to want a free ride, without the corresponding responsibilities. The next week will test whether China’s new president, Xi Jinping, intends to play a more engaged role with the United States and the world. Xi will spend two days in secluded strategic talks with President Obama, in what Chinese officials have been describing over the past year as a search for “a new type of great power relationship.” [China confrontation]
• Why China Is Not the Solution to the Korean Crisis
  May 31, 2013 By Mitchell Lerner Beijing calls the shots in North Korea? History shows that thinking is misguided. As tensions on the Korean Peninsula have grown, much of the relevant conversation within the United States has focused on China, the one nation that, according to many American policymakers, can control the North Korean leadership. “China does hold the key to this problem,” explained Senator John McCain, who described the Chinese “failure to rein in what could be a catastrophic situation,” as “disappointing.” Many other policymakers and media outlets agree. This thinking is, however, fundamentally flawed on numerous levels. To begin with, it abdicates American leadership, deferring to a rival in an area of great strategic and economic interest. [China NK] [US NK policy]

• China Wants Our Bacon—and Our Hot Dogs
  A Chinese firm wants to purchase Smithfield. Here's the government panel that could stop them. By Matt Vasilogambros Updated: May 29, 2013 | 2:19 p.m. May 29, 2013 | 2:09 p.m. Chinese company Shuanghui is set to buy U.S. pork producer Smithfield Foods for $4.7 billion. (AP Photo/Keith Srakocic) Chinese and U.S. markets are becoming closer and closer by the day, but there is one government agency that stands to keep this in check: the Committee on Foreign Investment in the United States. Known most commonly as CFIUS, this committee is back in the news this week for its upcoming role in approving the biggest takeover of a U.S. company by a Chinese company with the merger of U.S. pork-producer Smithfield Foods and Shuanghui International Holdings. The Chinese corporation is acquiring Smithfield in a $4.72 billion deal. But the deal is not yet finished. This is where CFIUS comes into play. What is CFIUS? The committee is chaired by the treasury secretary, with representatives from the Departments of Defense, State, Justice, Homeland Security, and 12 other departments. If it finds that a merger could hurt national security, it can recommend the president to block the deal. CFIUS was established by Gerald Ford in a 1975 executive order, which cited the Defense Production Act of 1950 as its legal precedent. This law was passed after the start of the Korean War and seen as a response to a broadening Cold War. [China confrontation] [FDI]
• America's China mistake
  As Beijing becomes more bellicose, Washington clings to the hope that military-to-military relations will somehow relieve tensions. They won't. China China's navy has been invited to participate in the 2014 Rim of the Pacific naval exercise to be held off Hawaii. (Andy Wong / Associated Press / May 29, 2013) Your take? Should the U.S. include China in its naval exercises? Yes No 11,669 votes By Gordon G. Chang and James A. Lyons Jr. May 30, 2013 This spring, China's navy accepted the Pentagon's invitation to participate in the 2014 Rim of the Pacific — RIMPAC — naval exercise to be held off Hawaii. This will be the first time China takes part in the biennial event. Our allies should signal their intent to withdraw from the exercise if China participates. Failing that, the invitation should be withdrawn. RIMPAC is for allies and friends, not nations planning to eventually wage war on the United States. Russia sent ships in 2012, but while its senior officers may occasionally utter unfriendly words, they are not actively planning to fight the United States. Analyst Robert Sutter was surely correct when he wrote in 2005 that "China is the only large power in the world preparing to shoot Americans." That assessment, unfortunately, remains true today. Beijing is configuring its forces — especially its navy — to fight ours. For instance, China has deployed along its southern coast its DF-21D, a two-stage solid-fuel missile that can be guided by satellite signals. The missile is dubbed the "carrier killer" because it can be configured to explode in midair, raining down sharp metal on a deck crowded with planes, ordinance, fuel and sailors. Its apparent intent is to drive U.S. forces out of East Asia. [China confrontation] [Conflict]
• Envoy to China to seek cooperation over NK
  By Chung Min-uck Korea’s new ambassador to China said Wednesday he will bolster cooperation with Beijing in pressing North Korea to scrap its nuclear programs and return to the negotiating table. He said China has signaled a change in its policies towards Pyongyang. “Looking at how China implemented sanctions based on the U.N. Resolutions adopted against North Korea, I feel some sense of a change in China’s North Korean policy,” said Kwon Young-se, the newly-designated ambassador in an interview. “However, it’s hard to conclude that China’s position has altered fundamentally. I will try hard to convince China to be on the same page with South Korea.”
• Japanese actions near Diaoyutais concern ROC
  Japanese actions near Diaoyutais concern ROCTaiwan vessels sail near the Diaoyutai Islands. The MOFA expressed serious concern over Japanese rightwingers operating ships in ROC territorial waters. (CNA) •Publication Date:05/28/2013 •Source: Taiwan Today The ROC government expressed serious concern over the activities of Japanese rightwing groups in its territorial waters around the Diaoyutai Islands, as their actions are raising tensions in the area, the Ministry of Foreign Affairs said May 27. “Japanese and mainland Chinese government vessels have reportedly been drawn to the area by the groups’ actions and issued mutual warnings. Such activity infringes upon ROC sovereignty over the islands, raises tensions in the area and affects stability and security in the region,” the MOFA said. “The ROC calls on all parties to show reason and restraint, and avoid any action that could lead to conflict and disturb peace and stability in the East China Sea,” the MOFA added. From the point of view of history, geography, geology, practical use and international law, the Diaoyutais are unquestionably an integral part of ROC territory, the ministry said. [Diaoyu]
• Soft power
  By Xu Lin China.org.cn, May 27, 2013 China's newly-appointed Foreign Minister Wang Yi has demonstrated that he possesses the blend of tact and toughness necessary to tackle the sensitive regional and global diplomatic issues facing China. Beijing-born Wang Yi was studying in Beijing International Studies University 30-some years ago. Today, as Chinese foreign minister, he finds himself representing China's image on the international stage. Since taking up his post on March 16, 2013, Wang has been extremely busy in dealing with various foreign affairs. He visited Russia, Tanzania, South Africa and Congo together with President Xi; then met with top officials and ambassadors of the ASEAN countries; had a teleconference with United Nations Secretary-General Ban Ki-moon; and had talks with U.S. Secretary of State John Kerry as well as Indian External Affairs Minister Salman Khurshid. It is clear that this newly-appointed Chinese foreign minister has shown both the Chinese and global audience his active attitude towards external affairs. His voice has accurately expressed China's stance on key issues. Firm stance on the Diaoyu Islands issue Wang served as Chinese ambassador to Japan from 2004 to 2007, and therefore was considered a Japan expert among Chinese diplomats
• Time for DPRK to abandon nuclear push
  By Zhao Jinglun China.org.cn, May 28, 2013 Vice Marshal Choe Ryong-hae, the special envoy of North Korean leader Kim Jong-un, recently concluded his three-day visit to Beijing during which he met with President Xi Jinping. During the meeting, Choe indicated that the DPRK was open to dialogue, including the six-party talks, which collapsed in April 2009 when the DPRK announced that it was pulling out of the talks. It was reported that Choe's visit was something of a panic measure due to Pyongyang's fears that its behavior had pushed China closer to the United States. He arrived in Beijing just two days after China and the U.S. announced that President Xi and President Obama would meet in California in early June. [China NK]
• Top Chinese Official 'Sees No Special Relationship with N.Korea'
  Senior Chinese official and roaming regional ambassador Wang Jiarui recently described his country's ties with North Korea as merely "normal relations between states," a lawmaker here said Monday. Yoo Ki-june of the Saenuri Party's Supreme Council was speaking after he led a group of 10 ruling and opposition lawmakers on a visit to China last week. Yoo told Saenuri leaders that the group met senior Chinese officials like Wang, the director of the Communist Party's International Department, and Chongqing party secretary Sun Zhengcai, who handle Korean affairs. "In my meetings with them, I sensed a lot of change in Chinese diplomacy toward North Korea," Yoo said. Yoo later told the Chosun lbo, "Wang called Beijing-Pyongyang ties 'normal relations between states' while explaining his country's relations with North Korea since the North's third nuclear test. He implied that Pyongyang is so recalcitrant that it's hard for Beijing to influence it." "In the past, China tried to defend the North even if it had made mistakes, but this time all Chinese officials we met openly complained about the North," Yoo added. In a separate telephone interview, Democratic Party lawmaker Ahn Gyu-baek, who was also part of the group, also said, "When we met Wang, I urged China to play a leading role in persuading the North to return to the six-party nuclear talks. But he said that the U.S. and South Korea rather than China are key to the role. It sounded as if there was some change" in China's relations with the North. [China NK]
• Kim Jong-un could be hoping to visit Beijing before September
  Posted on : May.28,2013 14:45 KST Media reports say special envoy conveyed a message from Kim; China has yet to comment By Seong Yeon-cheol, Beijing correspondent North Korean leader Kim Jong-un told Chinese President Xi Jinping he hopes to visit China before September of this year, the Duo Wei Times reported on May 26. The US-based Chinese newspaper quoted a source as saying that North Korean military vice-marshal Choe Ryong-hae, who recently visited to China as Kim’s special envoy, was an “advance party” for Kim’s own visit later this year. The source also reported that Kim delivered a personal message to Xi expressing his hopes to visit China before September. “China acknowledged that the message was received, but it hasn’t given any answers on the timing,” the source added. The newspaper suggested three possible reasons for Choe’s visit: to explain North Korea’s recent military actions (including its missile launch and nuclear test), to agree to China’s calls to resume the six-party talks, and to clear the way for a visit by Kim later this year. The report also quoted France’s AFP news agency as saying that National Defense Committee vice-chairman Jang Song-thaek also proposed a visit by Kim during his own China visit last August, but that Beijing did not agree to it. [China NK]
• Gaming the North Korean Nuclear Crisis
  by Fan Jishe May 28, 2013 In this Policy Forum Fan Jishe argues that North Korea may also become one of the main variables affecting strategic relations between the US and China. Regional reactions to North Korea's nuclear issues challenge China's traditional policy toward North Korea. However, the core or source of the problem also contains the core of the solution. The "core" is a double-entendre evoking both the root cause and the nuclear nature of the issues. This article originally Appeared on the website 21ccom.net in February 2013 and is being published as a policy Forum with the author's permission. Fan Jishe is the Deputy Director of the Arms Control Center in the Institute of American Studies, China Academy of Social Sciences. Gaming North Korean nuclear crisis-does the problem contain the solution? Author: Fan Jishe 28th May 2013 Over the past decade, the Korean peninsula never calm, as the North Korean nuclear crisis hit U.S. drama, plot the ups and downs, climax after another. 2012, although the "ethnic kind father, the subject of eternal sun, the great Comrade Kim Il Sung and Kim Jong Il," riding a crane Seogwi, Korea heat continues unabated. World are focused on how to successfully wield Korea Kim Jong-un, and led the difficulties faced but still crusading Korean people "strong Shengda Guo open the door." North Korea Kim Jong-un did not let people down. April 13 after a failed satellite launch, "light star on the 3rd" on December 12th successful launch. In his New Year message, said Kim Jong-un, satellite launch "is the sun of national dignity and honor to the highest realm of the big wedding," the Korean people "saying good-bye to the annals of the motherland events in letters to shine in 2012, full ambition and confidence in the final victory, welcome the new year 2013. " [China NK] machine translation
• Exploitation of Chinese fishermen by North Korea
  By Zhang Lul China.org.cn, May 27, 2013 Liao Pu Yu No. 25222, also known as the Liaoning Generic Fishing, was freed by Pyongyang, on May 21, after seizure by an armed North Korean vessel on May 5 in the Yellow Sea. But it seems not to be the only seizure, reported the Jinghua Times on Monday. The seizure of Chinese fishing boats by North Korean military vessels happened at least twice this year, according to Jinghua Times. The Chinese fishermen themselves paid the ransoms. The fishermen involved reported to the police, but the authorities haven't released the results of the investigations. "Bang Ting" companies located in the city of Dandong, China, served as intermediary between the seized fishing boats and North Korean authorities. "Bang Ting" companies own boats that help North Korean patrol vessels. They also help collect ransom money. Captain Yu Minglong of the fishing boat Liao Dan Yu No.25395, which was seized by North Korean patrol vessels last year, told reporters that he paid the ransom through the captain of a "Bang Ting", who crossed the China-North Korea border and handed over the ransom to the North Korean authorities. Yu Xuejun, whose boat was seized on May 5, said that the North Korean vessels had also demanded him to pay ransom through a company in Dandong. But since he refused to pay the money, the company and its bank account information were not revealed to him. "Bang Ting" companies were started over ten years ago in Dandong, when some people offered to act as intermediary between North Korea and Chinese fishermen, who had started poaching in the North Korean waters twenty years ago. As fishery resources started to dry up in China, more fishermen started fishing in the North Korean waters through the intermediary of "Bang Ting". There are now three large-scale "Bang Ting" companies in Dandong, which operate in different maritime spaces in North Korea. The companies charge 2,500 yuan for one outing; 50,000 to 60,000 yuan for a month; and 250,000 yuan for a quarter. Fishing boats that put up North Korean flags along with Chinese flags can be identified as "Bang Ting", according to reporters of Jinghua Times. Captains of the boats have special licenses, which allow them to cross the China-North Korea border and go fishing in the North Korean waters.
• [Analysis] Choi Ryong-hae’s visit to China
  Posted on : May.27,2013 15:58 KST No mention made of denuclearization indicates North Korea has no plans to give up its nukes By Kang Tae-ho, senior staff writer On May 24, Choe Ryong-hae, vice marshal of the Korean People’s Army, was sent to China as the special envoy of North Korean leader Kim Jong-un, where he met with Chinese leader Xi Jinping. Considering that Choe made mention of the six-party talks during his meeting with the Chinese, there is an increased likelihood of North Korea changing its policy. But the fact that Choe did not make a single mention of nuclear weapons despite China’s strong request for denuclearization of the Korean peninsula does not bode well for discussions of denuclearization on the Korean peninsula. In January, North Korea announced through a statement by its foreign ministry that, “by intensifying its hostile policies toward North Korea, the US had brought about the nullification of the six-party talks and the Sep. 19 joint statement and had ended the process of denuclearization.” [Six Party Talks] [US NK negotiations]
• What was behind N. Korean official’s wardrobe switch?
  Posted on : May.27,2013 15:55 KST Left, Choe Ryong-hae vice marshal of the (North) Korean People’s Army meets with Liu Yunshan, first secretary of the central secretariat of the Communist Party of China in Beijing on May 23 wearing his military. Right, Choe greets Chinese president Xi Jinping on May 24 in all-black civilian garb. (AP/Yonhap News) While in Beijing, Choe Ryong-hae unexpectedly changed into all black to meet the Chinese president By Park Byong-su, staff reporter Throughout North Korean vice marshal Choe Ryong-hae’s visit to China last week, he wore his military uniform except for when he donned civilian garb to meet Chinese president Xi Jinping. When Choe returned to North Korea on the evening of the same day, he was once again wearing his military uniform. Curiosity is increasing about the reasons for his wardrobe change.
• US, China hold talks before Obama-Xi summit expected to be long on issues and short on trust
  By Associated Press, BEIJING — U.S. National Security Adviser Tom Donilon began discussions with Chinese officials Monday for a summit between their two presidents that will confront divisive security issues while trying to overcome a growing distrust between the governments. Donilon and State Councilor Yang Jiechi, China’s senior foreign policy official, said next month’s summit is a chance for the U.S.’s Barack Obama and China’s Xi Jinping to work through problems. Though they did not identify those challenges in their public remarks, ties are strained across the board, from longstanding differences over Iran’s and North Korea’s nuclear programs to new disputes over cyber-attacks and China’s more assertive pursuit of territorial claims against U.S. allies Japan and the Philippines. In a sign that both sides want to stem the drift besetting ties, the summit now scheduled for June 7-8 is taking place months earlier than the two presidents were supposed to meet. It’s their first face-to-face meeting since Obama’s re-election and Xi’s promotion to head of the Communist Party last November. The setting — at the private estate of the late publishing tycoon Walter Annenberg in southern California — is supposed to be informal, giving Xi and Obama and chance to build a rapport. [US China] [Obama_Xi13]
• NK leader stresses importance of friendship between Pyongyang, Beijing
  2013-05-25 18:48 In a letter to Chinese President Xi Jinping, North Korean leader Kim Jong-un underlined the need to foster and consolidate the traditional friendship between the two countries, the North's state media said Saturday. Choe Ryong-hae, the director of the General Political Bureau of North Korea's People's Army, delivered Kim's hand written letter to Xi at their meeting in China on Friday. Kim's remarks are largely seen as part of a greater effort to mend fences with China after Pyongyang angered Beijing by ignoring its repeated calls to curb tensions on the peninsula and by continuing to develop its nuclear program. [China NK]
• RMB to be one top 3 trade currencies: HSBC
  Xinhua, May 25, 2013 The RMB, or Chinese yuan, would be able to become one of the top three global traded currencies in volumn term by the end of 2015, said Douglas Flint, chairman of HSBC Holdings plc, in London Friday. "The RMB is increasingly the part of nomal day-to-day business for anyone trading or investing in China," said Flint at the Annual General Meeting (AGM). "Every international business with an eye on China should be considering potential benefits for using the RMB, and the RMB investment opportunity has been created around the world, supported by the thriving offshore markets, particularly offshore bond markets," he said. At the same day, Bloomberg, citing with a person familiar with the matter, reported that HSBC will manage an first-ever sales of RMB denominated bonds in Singapore, a city country competes with Hong Kong as the offshore hub for the currency. According the estimates from HSBC, the offshore debt sales in RMB may reach as much as 360 billion yuan, or approximately 59 billion U.S. dollars this year. Gradually, Chinese financial market is creating investment opportunities, the process of reform has accelerated, the rise of RMB will continue, said Flint. In volumn term, HSBC expects RMB to become one of top three global trade currencies by 2015, and within five years, it could be fully convertible. [Currency] [Reserve]
• N. Korea wants to resume 6-party talks
  2013-05-25 08:28 Chinese President Xi Jinping, right, shakes hands with Choe Ryong-hae, the special envoy of North Korean leader Kim Jong-un in Beijing, Friday. Choe delivered Kim’s handwritten letter to the Chinese leader. Kim said in the letter that the North is willing to resume the six-party talks on ending its nuclear programs. Xinhua-Yonhap Kim Jong-un’s envoy meets Xi Jinping By Kim Tae-gyu North Korea said Friday it is willing to resume the six-party talks on ending its nuclear programs. North Korean leader Kim Jong-un’s envoy Choe Ryong-hae met with Chinese President Xi Jinping to make the point while delivering Kim’s letter to Xi, China’s state media said. “Based on cooperation with related countries, North Korea wants to deal with associated issues through various types of dialogues and negotiations including the six-party talks.” Xinhua News Agency quoted Choe as saying. [Six Part Talks]
• Will six-party talks resume?
  By Kim Tae-gyu 2013-05-24 18:41 North Korea is unlikely to return to the six-party talks aimed at stopping the communist regime’s nuclear ambitions despite promising to engage in dialogue with its only ally and benefactor, China. North Korean leader Kim Jong-un’s special envoy to China, Vice Marshall Choe Ryong-hae, said that the country would accept an offer from China to begin dialogue during his visit this week. [Six Part Talks]
• NKorean envoy delivers letter from Kim Jong Un to Chinese President Xi, commits to new talks
  By Associated Press, BEIJING — A top North Korean envoy has delivered a letter from leader Kim Jong Un to Chinese President Xi Jinping and told him Pyongyang would take steps to rejoin stalled nuclear disarmament talks, in an apparent victory for Beijing’s efforts to coax its unruly ally into lowering tensions. North Korean Vice Marshal Choe Ryong Hae’s three-day visit was seen as a fence-mending mission after Pyongyang angered Beijing with recent snubs and moves to develop its nuclear program. Choe returned to North Korea late Friday. [Six Party Talks]
• Inside China: Taiwan, China vie for toughness
  By Miles Yu Thursday, May 23, 2013 The May 9 fatal shooting of a Taiwanese fisherman by the Philippine coast guard set off an inadvertent naval competition between Taiwan and China. The incident occurred in the disputed Bashi Strait between Taiwan and the Philippines, and Taiwan and China each sent a large number of vessels to waters near the Philippines to demonstrate armed hostility. The Philippines is a key disputant over many islands in the South China Sea that are claimed by the Philippines, China and Taiwan — itself an island claimed by China. [South China Sea] [Straits]
• China 'offers troops' to UN Mali peacekeeping mission
  China has offered soldiers to the new UN peacekeeping mission in Mali, UN officials say. Talks are underway, and more than 500 Chinese peacekeepers and engineers could potentially take part in the mission, according to UN officials. Mali's government was deposed in a coup in 2012, and Islamist rebels controlled the north of the country until French troops ousted them in January.
  China has more than 1,800 peacekeepers deployed in UN operations, and contributes more troops than the four other permanent Security Council members. [China global strategy] [UN]
• North Korea says will take 'positive steps' for peace
  Choe Ryong-hae (C), director of the General Political Bureau of the Korean People's Army (KPA) of North Korea, walks with Chinese Ambassador Liu Hongcai (2nd R) before departing Pyongyang airport for China, in this May 22, 2013 picture released by the North Korea's KCNA news agency in Pyongyang. REUTERS/KCNA ( By Terril Yue Jones and Sui-Lee Wee BEIJING | Fri May 24, 2013 8:28am EDT (Reuters) - A North Korean envoy told China's president on Friday that his reclusive country was willing to take "positive actions" to ensure peace and stability on the Korean peninsula, as China steps up diplomatic efforts to bring Pyongyang back to talks. But Choe Ryong-hae, a special envoy of North Korean leader Kim Jong-un, made no offer to abandon North Korea's nuclear program. The United States insists North Korea takes meaningful steps on denuclearization before there can be dialogue. Choe met Chinese officials, including President Xi Jinping, in the highest-ranking visit by an official from Pyongyang in about six months. Chinese state media said Choe presented a hand-written letter from Kim to Xi at Beijing's Great Hall of the People. Media provided no details of its contents. [China NK]
• DPRK agrees to dialogue
  China.org.cn, May 24, 2013 The Democratic People's Republic of Korea (DPRK) will accept the proposal by China to open up dialogue, said a DPRK envoy after meeting with senior Chinese leader Liu Yunshan in Beijing. Liu Yunshan (R), a member of the Standing Committee of the Political Bureau of the Chinese Communist Party (CPC) Central Committee, meets with Choe Ryong Hae, the special envoy to DPRK leader Kim Jong Un, in the Great Hall of the People on May 23, 2013. [Photo: Xinhua] Liu, a member of the Standing Committee of the Political Bureau of the Chinese Communist Party (CPC) Central Committee, met in the Great Hall of the People with Choe Ryong Hae, the special envoy to DPRK leader Kim Jong Un Thursday afternoon. Choe said the DPRK side is willing to accept advice from the Chinese side and carry out dialogue with relevant parties. The DPRK highly appreciated the effort that the Chinese side has made in maintaining peace and stability of the peninsula and on pushing the Korean Peninsula issue back on the track of dialogue and consultation, according to Choe. The DPRK hopes to concentrate its energy on developing its economy and improving people's livelihood and is ready to create a peaceful external environment for this, Choe said. Liu expressed the readiness to work with the DPRK side to enhance communication, increase common ground and advance China-DPRK relations in a healthy, stable way. Liu expressed hope that all relevant parties should stick to the goal of denuclearization, persist on maintaining peace and stability of the peninsula and resolve problems through dialogue and consultation. Choe Ryong Hae, director of the General Political Bureau of the Korean People's Army and member of the Presidium of the Political Bureau of the the Workers' Party of Korea Central Committee, arrived in Beijing from Pyongyang Wednesday. [China NK] [Six Party Talks]
• N.Korean Envoy Gets Lukewarm Reception in China
  Senior North Korean Army military figure Choe Ryong-hae, who is visiting China as a special envoy of leader Kim Jong-un, was given rather a lackluster reception in China this week. Choe, who is believed to be one of three key figures behind the North Korean throne, had to wait a whole day since his arrival Wednesday to meet a ranking Chinese Politburo member. On Thursday he sat down with Liu Yunshan, considered the fifth-most senior apparatchik in Beijing The two spoke about tensions on the Korean Peninsula but did not appear to see eye to eye on key issues. Liu urged North Korea to scrap its nuclear weapons and to return to the dialogue table. Choe said, "North Korea hopes to concentrate on the economy and improve people's livelihoods and is willing to create a peaceful foreign environment."
• N.Korean Envoy Gets Lukewarm Reception in China
  Senior North Korean Army military figure Choe Ryong-hae, who is visiting China as a special envoy of leader Kim Jong-un, was given rather a lackluster reception in China this week. Choe, who is believed to be one of three key figures behind the North Korean throne, had to wait a whole day since his arrival Wednesday to meet a ranking Chinese Politburo member. On Thursday he sat down with Liu Yunshan, considered the fifth-most senior apparatchik in Beijing The two spoke about tensions on the Korean Peninsula but did not appear to see eye to eye on key issues. Liu urged North Korea to scrap its nuclear weapons and to return to the dialogue table. Choe said, "North Korea hopes to concentrate on the economy and improve people's livelihoods and is willing to create a peaceful foreign environment."
• ROC navy, CGA task force crosses 20th parallel
  ROC navy, CGA task force crosses 20th parallelA CGA vessel steams out of port for the South China Sea May 20 to join the navy in patrols safeguarding the local fishing fleet. (CNA) •Publication Date:05/22/2013 •Source: Taiwan Today An ROC navy and Coast Guard Administration task force crossed the 20th parallel near Batan Island in the South Sea at 3:50 a.m. May 21 while conducting a patrol, according to air force command HQ. Previously, the ROC government had set a provisional southern boundary for fishery protection at 20 degrees north, although the nation’s exclusive economic zone extends further south to a 200 nautical mile limit. “The drill followed international practice and legally passed through waters beyond 20 degrees north,” a navy official in command of naval task force No. 168 said. “Together with the CGA, and in accordance with military regulations and the law, we are protecting local fishermen and the rights of the country.” [South China Sea]
• China: The Morphing Dragon
  Posted: 05/22/2013 2:48 pm The Chinese economy has changed dramatically over the last three decades. While its per-capita income was only a third of that of Sub-Saharan Africa in 1978, it has now reached an upper-middle income status, lifting more than half a billion people out of poverty. The numbers are dramatic: per capita income has doubled for more than a billion people in just 12 years. What was once a primarily rural, agricultural economy has been transformed into an increasingly urban and diversified economic structure, with decentralization and market-based relations rising relative to the traditional government driven command-based economy. [China rising]
• N.Korean Envoy Visits China
  Choe Ryong-hae Senior North Korean Army military figure Choe Ryong-hae arrived in China on Wednesday as a special envoy for leader Kim Jong-un. Choe is believed to be the real power in the North Korean military and one of Kim’s closest aides. Vice Marshal Choe is the first top-level North Korean official to visit China since eminence grise Jang Song-taek nine months ago. One of four members of the Politburo's presidium, Choe is also one of a triumvirate of heavyweights alongside Kim's aunt Kim Kyong-hee and her husband Jang. North Korean media published neither the purpose of Choe's visit nor his itinerary. But he is expected to deliver a letter from Kim to Chinese President Xi Jinping. Some pundits speculate that Choe is preparing the ground for a visit to China by Kim. Chinese Foreign Ministry spokesman Hong Lei said any such visit will be announced "in due time." Hong said the both sides will exchange views on the situation surrounding the Korean Peninsula and stressed Beijing continues to urge a return to the six-park talks with its "commitment to maintaining the peace and stability" in the region. An Air Koryo flight carrying the North Korean envoy arrived at Beijing Capital International Airport around 10:30 a.m. Wednesday. Choe first met Wang Jiarui, the director of the Chinese Communist Party's International Department, who is in charge of inter-party exchanges with the North, Chinese media reported.
• Kim Jong Un's Special Envoy Leaves for China
  Pyongyang, May 22 (KCNA) -- Vice Marshal of the Korean People's Army (KPA) Choe Ryong Hae, member of the Presidium of the Political Bureau of the Central Committee of the Workers' Party of Korea and director of the KPA General Political Bureau, left here on Wednesday by special plane to visit the People's Republic of China as a special envoy of Kim Jong Un, first secretary of the Workers' Party of Korea and first chairman of the National Defence Commission of the DPRK. He was accompanied by KPA Col. Gen. Ri Yong Gil, Kim Song Nam, vice department director of the WPK Central Committee, Kim Hyong Jun, vice-minister of Foreign Affairs, KPA Lieut. Gen. Kim Su Gil and other officials concerned. The special envoy and his party were seen off at the airport by Kim Kyok Sik, chief of the KPA General Staff, Kim Yong Il, secretary of the WPK Central Committee, KPA Col. Gen. Son Chol Ju, Ri Yong Chol, vice department director of the WPK Central Committee, Pak Kil Yon, vice-minister of Foreign Affairs, and other officials concerned and Liu Hongcai, Chinese ambassador to the DPRK.
• North Korea sends special envoy to China
  Posted on : May.23,2013 16:06 KST Choe Ryong-hae, vice marshal of the Korean People’s Army, meets with Wang Jiarui, head of the Chinese Communist Party Central Committee International Liaison Department in Beijing, May 22. (Xinhua/Yonhap News) Sudden dispatch of Choe Ryong-hae is apparent attempt by the North to patch up relations with China By Park Byong-su, staff reporter and Seong Yeon-cheol, Beijing correspondent The abrupt visit to China made by Choe Ryong-hae, vice marshal of the Korean People’s Army, the official name of the North Korean military, is attracting attention. Choe was an unusual selection as a special envoy and his visit comes at a delicate time. Following North Korea’s launch of a long-range missile in Dec. 2012, its third nuclear test in Feb. 2013, and the subsequent sanctions passed by the United Nations Security Council (UNSC), the Korean peninsula has been stuck in a perpetual mode of confrontation. North Korea’s actions reflect their need to show something both domestically and internationally, but have served to further isolate the country. [China NK]
• House Panel Shoves Pentagon-China Satellite Deal Out of the Airlock
  By Noah Shachtman 05.21.13 The Pentagon insists that its deal with a Chinese satellite firm to carry U.S. troops’ communications isn’t a security risk. But Congressmen with the ultra-influential House Armed Services Committee don’t want to leave military data in Beijing’s hands. They’re moving to block any future contracts, like the one the Defense Department just signed. In their just-released revision of next year’s defense budget bill, the members of the committee’s strategic forces panel inserted language that would “prevent the Secretary of Defense from entering into contracts for satellite services” with countries like China and North Korea. There still remain many legislative steps before such a prohibition becomes law. But the move comes just days after the Pentagon agreed to renew a $10.7 million annual lease of China’s Apstar-7 communications satellite, which is supposed to carry data for American forces operating in Africa. The deal underscores how desperate the U.S. military is for satellite bandwidth, especially in relatively remote locations. But the lease still doesn’t sit well with many House Republicans, who see China as a global competitor to the U.S., not a military partner. [F&E] [Aerospace] [Communications]
• Top DPRK leader's envoy visits China
  Xinhua, May 22, 2013 A special envoy of Kim Jong Un, top leader of the Democratic People's Republic of Korea (DPRK), left Pyongyang Wednesday for a visit to China, the official KCNA news agency reported. Choe Ryong Hae, director of the General Political Bureau of the Korean People's Army (KPA) and member of the Presidium of the Political Bureau of the the Workers' Party of Korea (WPK) Central Committee, left Pyongyang by air for the visit, the KCNA said. He was accompanied by KPA Col. Gen. Ri Yong Gil, Vice Department Director of the WPK Central Committee Kim Song Nam, Vice Foreign Minister Kim Hyong Jun and KPA Lieut. Gen. Kim Su Gil. The report did not give details of the visit or its itinerary. It is the first time that a DPRK envoy visits China since Kim took power after his father Kim Jong Il died in December 2011. The visit comes as South Korean President Park Geun-hye is expected to visit Beijing next month. [China NK]
• Freed boat to continue fishing
  China.org.cn, May 22, 2013 The private Chinese fishing boat freed by Pyongyang Tuesday morning after 12 days of detention will continue its operations in China's waters off the Yellow Sea, its owner said. The boat owner Yu Xuejun, who was not on board, said that all the fishermen are safe and returning on their way home. No ransom had been paid, Chinese foreign ministry spokesman Hong Lei said at a news briefing yesterday. Yu said earlier the kidnappers had demanded a ransom of 600,000 yuan (US$97,700). The boat's captain called Yu on Tuesday afternoon, telling him that armed personnel from the North Korea had restricted the sailors' freedom and stolen tons of diesel fuel.
• MRI Researchers Accused of Sharing Data With China
  Published May 20, 2013 Dow Jones Newswires Federal prosecutors in Manhattan have accused three Chinese nationals, including a renowned researcher of magnetic-resonance-imaging technology, of secretly sharing U.S.-funded research with competitors, the latest effort by the government to stem what it describes as illegal exporting of technology overseas. The criminal case involving the three men who worked at New York University Langone Medical Center follows an internal university probe that involved installing surveillance cameras in their work area, reviewing emails and confiscating their laptops, according to the criminal complaint unsealed Monday. The university became concerned after learning of their undisclosed affiliation with a Chinese firm, the complaint alleged. Prosecutors accused Yudong Zhu, an associate professor of radiology at NYU Langone, and two other researchers, Xin Yang and Ye Li, of sharing research that was funded by a $4 million grant from the National Institutes of Health, a U.S.-sponsored research agency, with a Chinese company called United Imaging Healthcare and a Chinese government-sponsored research institute, the Shenzhen Institute of Advanced Technology. [Diaspora] [IPR]
• China's Strategy in Afghanistan
  Beijing is keen to increase its involvement in the country following the planned U.S. withdrawal in 2014. But security problems may interfere. Alexandros Petersen May 21 2013, 7:30 AM ET For a relatively small drilling operation, China National Petroleum Corporation's (CNPC) project in Afghanistan's Sar-e-Pul province has a large footprint. Several layers of fences and containers serving as blast walls surround the extraction site, which includes dormitories, an office complex and various security structures. Throughout the day, trucks ferry in equipment and more containers. On the outside, the faces are all Afghan, but CNPC's logo and bright red Chinese slogans are impossible to miss. This remote outpost, not far from Afghanistan's northern border with Turkmenistan, may symbolize the country's future after the planned U.S. withdrawal of combat troops next year. As Washington prepares its exit following 13 years in the country, signs that Beijing has steadily stepped up its official and corporate presence across Afghanistan have begun to arise. In September, then Politburo member Zhou Yongkang met with President Hamid Karzai, while lower level diplomats have discussed greater engagement with the Afghan government. China even plans to re-open a branch of the Confucius Institute, an organization devoted to teaching Chinese culture and language, in Kabul. These efforts are part of a rapid change in Chinese strategy [China rising] [Decline]
• Embassy: DPRK frees fishermen
  China.org.cn, May 21, 2013 The Democratic People's Republic of Korea (DPRK) has released the 16 fishermen it had kept in detention since May 5, the People's Daily quoted an official from the Chinese Embassy in DPRK as saying early Tuesday. No further details from the embassy were available by press time. Yu Xuejun, owner of the detained ship, also revealed that he received a call from the ship's captain at 3:50 a.m. Tuesday informing him of their release, according to latest reports. "The DPRK released our ship and crew and we are about to return," Yu quoted the captain as saying. According to media reports, private fishing boat "Liaoning Generic Fishing No. 25222" from Dalian City in northeast China's Liaoning Province was seized by the DPRK side, which demanded a ransom of 600,000 yuan (96,774.2 U.S. dollars) on May 5. Yu called the the Chinese embassy for help on May 10.
• Time to Admit China Is a Military Competitor
  By J. Randy Forbes May 17, 2013 1:56 PM The early-May release by the Defense Department of its annual report to Congress on China’s military developments is a prime opportunity to reevaluate how the United States frames the future of its security relationship with Beijing. For too long, politicians and pundits of both parties have refused to clearly state the obvious: The U.S. and China are engaged in a long-term peacetime competition with economic, diplomatic and, yes, military components. The sooner Washington begins speaking honestly about our relationship with China, the sooner we’ll have policies that adequately address the challenges facing our two countries. As China’s economic development continues and its regional aspirations expand, its military modernization has continued apace. This reality, and the necessity of the United States’ remaining a force in Asia-Pacific for the sake of regional stability, makes many in Washington uncomfortable. Indeed, the pressure to refrain from speaking openly about the issue has led some U.S. officials to begin referring to China as a national “Voldermort.” It’s immensely counterproductive to avoid speaking openly and truthfully about the Sino-American rivalry and its future trajectory. By failing to acknowledge China’s military ambitions and their potential consequences for U.S. interests in the region, American policymakers are choosing timidity when resolute leadership is required [China confrontation]
• China asks DPRK to free fishermen
  China.org.cn, May 20, 2013 The Chinese Embassy in the Democratic People's Republic of Korea (DPRK) is working on the detention by the DPRK of Chinese fishermen with a vessel, asking Pyongyang to ensure the safety and legitimate rights and interests of the fishermen. The Chinese Embassy in the Democratic People's Republic of Korea (DPRK) is working on the detention by the DPRK of Chinese fishermen with a vessel, asking Pyongyang to ensure the safety and legitimate rights and interests of the fishermen. The Chinese Embassy in the Democratic People's Republic of Korea (DPRK) asked the DPRK side to release the detained Chinese fishermen as soon as possible, a Chinese counselor to the DPRK said on Sunday. According to Xinhua News Agency, a private fishing boat from Dalian City in northeast China's Liaoning Province, known as Liaoning Generic Fishing No. 25222, was grabbed by the DPRK side, and Yu Xuejun, the ship owner, called the Chinese embassy for help on May 10.
• China 'Has Secret Plan to Replace N.Korean Leader'
  China is secretly pursuing plans to install North Korean leader Kim Jong-un's older brother Kim Jong-nam at the head of the renegade country in case the regime collapses, Germany’s Deutsche Welle reported Thursday. Under the headline "Is China Seeking Regime Change in North Korea," Deutsche Welle cited intelligence sources as saying Beijing "has a contingency plan in place for when Kim Jong-un's control over the country crumbles." It is "quietly encouraging regime change and is grooming Kim's brother, Kim Jong-nam to take over his role." Kim Jong-nam's relative obscurity at home is a problem. "Even residents of Pyongyang know very little" about him, according to the report. The broadcaster said North Korea's sudden throttling back of its aggressive rhetoric and provocations has led to suggestions that "Pyongyang has realized it has pushed its only ally in the region to the brink of severing its friendship." One sign that North Korea is aiming to appease China was Pyongyang’s announcement early last week that it appointed Jang Jong-nam, a little-known commander of an army corps in coastal Kangwon Province, to replace the elderly hawk previously in charge of the armed forces. There is more evidence that China is slowly increasing pressure on North Korea "as more state-run financial institutions sever their links with banks in North Korea," the German broadcaster added.
• The limits of arguing for a bigger Chinese role regarding N. Korea
  Posted on : May.20,2013 12:00 KST To solve the issue of North Korea’s nuclear weapons, more is needed than waiting for China to take a bigger role By Jin Jingyi, professor at Peking University Once again, the argument is being made that China should take a bigger role in addressing the North Korean nuclear weapons issue. During her trip to the US, South Korean President Park Geun-hye argued that China must get more involved in bringing about change in North Korea. US President Barack Obama referred to changes in China’s North Korea policy as “encouraging,” urging the country to take an even more active role. The argument that China should take on a more significant role in the issue is nothing new. While the idea is rarely proposed when progress is being made in relations between South and North and between North Korea and the US, it is often trotted out when these relations stumble and lurch instead toward confrontation.
• President Park to visit China in June for summit
  Posted on : May.18,2013 15:11 KST At the top of the agenda for Park and President Xi Jinping will be seeking China’s support in dealing with North Korea By Cho Hye-jeong, staff reporter President Park Geun-hye is scheduled to visit China in mid-June to discuss North Korea and her initiative for a trust-building process on the Korean peninsula with President Xi Jinping and other Chinese leaders. The Blue House said on May 17 that China had "made several invitations for the President to visit China," adding that discussions were currently under way on the timing for a visit. Sources said the Blue House was in talks with Beijing for a four-day visit in mid-June. [China SK]
• China to resume food aid to North Korea
  Posted on : May.16,2013 17:29 KST Beijing maintaining approach of token support of international sanctions while providing assistance to N. Korea By Seong Yeon-cheol and Park Hyun, Beijing and Washington correspondents Chinese authorities notified North Korea of plans to resume food aid before the Bank of China closed its account with North Korea’s Foreign Trade Bank (FTB), a diplomatic source in Beijing said. With China also supplying fertilizer aid, the situation suggests that while Seoul and Washington are both working to bring it on board with their pressure offensive against Pyongyang, Beijing is sticking to a dual approach using the carrot as well as the stick in its dealings with North Korea. [China NK] [Aid]
• The Unstoppable Force vs. the Immovable Object Could the United States really go to war with China?
  BY NOAH FELDMAN | MAY 16, 2013 Are we on the brink of a new Cold War? The question isn't as outlandish as it seemed only a few years ago. The United States is still the sole reigning superpower, but it is being challenged by the rising power of China, just as ancient Rome was challenged by Carthage, and Britain was challenged by Germany in the years before World War I. Should we therefore think of the United States and China as we once did about the United States and the Soviet Union, two gladiators doomed to an increasingly globalized combat until one side fades? Or are we entering a new period of diversified global economic cooperation in which the very idea of old-fashioned imperial power politics has become obsolete? Should we see the United States and China as more like France and Germany after World War II, adversaries wise enough to draw together in an increasingly close circle of cooperation that subsumes neighbors and substitutes economic exchange for geopolitical confrontation? This is the central global question of our as-yet-unnamed historical moment. [Conflict] [F&E]
• Taiwan adds sanctions against Philippines
  China.org.cn, May 15, 2013 Taiwan has implemented a new round of sanctions against the Philippines to rebuff the Philippines' response to the killing of a Taiwanese fisherman, chief of the island's executive body Jiang Yi-Huah announced Wednesday. Philippine special envoy Amadeo Perez and Philippine envoy in Taipei Antonio Basilio (right) meet the media in Taipei on Wednesday. Philippine special envoy Amadeo Perez and Philippine envoy in Taipei Antonio Basilio (right) meet the media in Taipei on Wednesday. Philippine President Benigno Aquino apologized on Wednesday for the killing of a fisherman from Taiwan and called for calm, after Taiwan suspended the hiring of Filipino workers and threatened more sanctions.[Photo/China Daily] The fresh sanctions, with immediate effect, include issuing a red alert for tourism to discourage Taiwanese people from traveling to the Philippines, as well as stopping high-level exchanges between the two sides. Economic exchanges and promotion, cooperation in agriculture and fishing, and exchanges and cooperation in technology and research will also be suspended, according to the island's executive body. The island has also dispatched military vessels to carry out a joint marine drill with its coast guard patrol vessels in waters off southern Taiwan. [South China Sea]
• Taiwan acts against Philippines over boat attack
  Taiwan acts against Philippines over boat attack ROC Premier Jiang Yi-huah announces government sanctions against the Philippines May 15 in Taipei City. (CNA) •Publication Date:05/15/2013 •Source: Taiwan Today ROC President Ma Ying-jeou said May 15 that Taipei will take punitive actions against Manila over its unsatisfactory response to the killing of a Taiwan fisherman by Philippines government personnel. “Manila’s response is absent authority, sincerity and is inconsistent,” Ma said. “Such a frivolous and perfunctory reply is unacceptable.” Ma made the remarks during a 7 a.m. National Security Council meeting at the Presidential Office in Taipei City called to review the Philippines response to the government’s 72-hour ultimatum that expired at midnight May 14. These actions, with immediate effect, include freezing Filipino labor applications, recalling its representative to the Philippines, and ordering Antonio I. Basilio, representative of the Manila Economic and Cultural Office in Taiwan, to return home. [Territorial disputes] [South China Sea]
• The Trust Deficit How the U.S. 'pivot' to Asia looks from Beijing.
  BY HE YAFEI | MAY 13, 2013 BEIJING — This is a crucial moment for Sino-U.S. relations, as heated debates about the future of this relationship rage in both countries -- debates characterized by downright pessimism, with only a sliver of optimism. Here in Beijing, we are asking: Is U.S. President Barack Obama's policy toward China undermining the already flimsy strategic trust between the two countries? Is it possible for China and the United States to build a new type of great-power relationship, one that can help us avoid confrontation and conflict? Can China and the United States work together to play a leadership role in global governance to meet such urgent global challenges as nonproliferation and climate change? Obama's "pivot" to -- or "rebalancing" toward -- Asia and the Pacific, in both words and deeds, has aroused a great deal of suspicion in China. These suspicions deepen when the United States gets itself entangled in China's dispute with Japan over the Diaoyu Islands and in the debates over maritime issues in the South China Sea. Should this ill-thought-out policy of rebalancing continue and the security environment worsen, an arms race would be inevitable. China, despite its intention to pursue a strategy of peaceful development, might be forced to revisit some aspects of its policy for the region. That is something China abhors. We understand that a peaceful and prosperous world starts with your neighborhood -- just as a stable and good Sino-U.S. relationship also starts in our two countries' neighborhood, the Asia-Pacific region. [China confrontation] [China global strategy] [Pivot]
• How China is educating Africa – and what it means for the west
  In an extract from a new book, China's aspirational approach to education and investment in Africa is distinguished from the west's focus on basic needs The da xue (Mandarin: the big study, or the big reading) or dai ho(k) (Cantonese: the big learning) are Chinese terms for a university. In the romance of the "old days", learning was the only way to bypass the class system. China's annual imperial exams allowed even the poorest subject to step outside his poverty and feudal status to become an official. When, later, learning became concentrated in universities, the institutions became prestigious and symbolic. They were the portals of escape. With this in mind, it is amazing that Chinese aid to Africa has not seized earlier upon the building of universities. The addition of universities was unremarked in the original Chinese proposal for the Democratic Republic of the Congo (DRC) in 2008. China pledged a $9bn loan, $3bn of which was to develop mines, over which China entered a 68/32% joint venture involving Sinohydro Corporation and DRC's previously almost defunct Gecamines; and $6bn was for infrastructure, with China Railway Engineering Corporation playing a major role. [China Africa] [Education]
• The Dalai Lama’s compassion disconnect
  By Sally Quinn, Published: May 11 The Dalai Lama was in the area this week to give the Anwar Sadat Lecture for Peace at the University of Maryland before 15,000 people. According to the university’s Web site, the Dalai Lama spoke about how “peace in the world must come from inner peace within individuals and the source of that inner peace is compassion for others.” Compassion for others is at the root of the controversy over the self-immolation of more than 100 Tibetans who have taken their own lives since 2009 to protest China’s occupation of Tibet. Those who burn themselves to death want to see the Dalai Lama return to Tibet. Why, people ask, would the Dalai Lama not put a stop to these violent acts of self-destruction in his name? Isn’t self-immolation the very antithesis of what Buddhism is about? How can it be moral or ethical to condone such behavior? Yet the Dalai Lama refuses to condemn it. [Tibet] [Dalai Lama]
• More Chinese banks cutting off business with North Korea
  Posted on : May.11,2013 13:51 KST The Bank of China, one of the four large Chinese state-owned commercial banks Suspensions make it more difficult for North Koreans in China to send money home By Jeong Nam-ku, Tokyo correspondent Bank of China and three other state-owned Chinese banks are suspending all transactions with North Korea, Japan's Asahi Shimbun newspaper reported on May 10. The report quoted bank officials as saying they had received direct orders from a Chinese government agency to block the accounts as part of the sanctions against North Korea for its missile launch and nuclear test. Another source was quoted as saying the measure was an expression of China's concerns about North Korea, adding that North Korean workers in the country may be having difficulties in sending remittances home. The four banks in question are the Bank of China, the Industrial and Commercial Bank of China, the China Construction Bank, and the Agricultural Bank of China. Remittances to North Korea were halted some time between February and March after North Korea's nuclear test, the newspaper reported. An official with the Bank of China told the Asahi Shimbun on May 9 that it had "notified North Korea of the closure of the Foreign Trade Bank’s [FTB] account and suspended handling remittances and disbursements to the account." [Financial sanctions]
• U.S. sanctions Taiwanese firm for ties with N. Korea
  The U.S. government said Friday it has imposed sanctions on a Taiwanese firm and its CEO for their connection with North Korea's weapons proliferation activity. The Treasury Department designated Trans Multi Mechanics Co. Ltd. and Chang Wen-Fu "for their links to a North Korean procurement agent, Alex H.T. Tsai," according to the department's press release. Alex Tsai was designated by the Treasury Department in 2009 for providing support to North Korea's premier arms dealer, Korea Mining Development Trading Corp. "It is essential that we continue to make it as difficult as possible for North Korea to facilitate its nuclear and ballistic missile programs by exposing key cogs in North Korea’s procurement network,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen. "We will continue to work with our partners in Federal law enforcement and our friends around the world to expose anyone assisting the North Korean government’s illicit procurement activities." The Treasury said Chang Wen-Fu, CEO and general manager of Trans Multi Mechanics Co. Ltd., has been actively involved in the procurement of dual-use machinery for North Korea. Alex Tsai has used the Taiwanese company to procure and ship hundreds of thousands of dollars’worth of equipment to North Korea and to negotiate contracts on behalf of North Korean parties, it added. [Sanctions]
• N.Korea Wants to Send Hundreds of Workers to China
  North Korea has told a company in China that it can send hundreds of laborers to work there. The North notified the firm in Liaoning Province near the border some time last month, when the closure of the inter-Korean Kaesong Industrial Complex appeared imminent. According to a document the Chosun Ilbo obtained from a source, a company that arranges for North Korean workers to go abroad wrote to the Chinese business in response to an inquiry, saying "hundreds of workers" have been given the green light by Pyongyang to work in China, and that many of them are ready to leave.
• MOFA condemns Philippine attack on fishing boat
  MOFA condemns Philippine attack on fishing boatA fatal Philippine attack May 9 on Taiwan fishing boat Kuang Ta Hsing No. 28 is straining bilateral relations. (CNA) •Publication Date:05/10/2013 •Source: Taiwan Today •By Grace Kuo The ROC Ministry of Foreign Affairs lodged a stern protest May 9 with Carlo L. Aquino, deputy representative of the Manila Economic and Cultural Office in Taiwan, over the fatal attack on a Taiwan fishing boat by one of its official vessels. The Philippine government must conduct a thorough investigation into the incident, thereby bringing justice to the victims, the MOFA said. Kuang Ta Hsing No. 28 encountered gunfire from the Philippine ship 164 nautical miles southeast of Cape Eluanbi, Taiwan’s southernmost point, at around 10 a.m. the same day. The assault killed 65-year-old fisherman Hung Shih-cheng, one of four crew members on board, while severely damaging the vessel. [Territorial disputes] [South China Sea]
• A Global Economic Order with Chinese Characteristics
  By Zachary Keck May 10, 2013 Although much of the current attention on China has focused on domestic and regional issues, recent days have offered a number of reminders that Beijing itself is still very much committed to gradually reshaping the global economic order. Some recent activity has involved international institutions. For instance, the Financial Times reported this week that China is spearheading an effort at the World Bank to eliminate its Doing Business report, which ranks national economies according to indicators like transparency, regulations, and the ease of starting a company. It would be a mistake to attribute this simply to China’s desire to avoid the unwanted publicity that comes with being ranked 91st in the report. Rather, China’s opposition stems from a deeper hostility to the dominance of liberal economics. As the report’s critics often charge, a country’s ranking is largely a reflection of how much it confirms with classical economic liberalism. [China rising] [Washington consensus]
• Ma lauds special partnership with Japan
  Ma lauds special partnership with JapanROC President Ma Ying-jeou greets Yoshiko Y. Nakano, head of OISCA International, May 8 at the Presidential Office in Taipei City. (CNA) •Publication Date:05/09/2013 •Source: Taiwan Today ROC President Ma Ying-jeou said May 8 that the many breakthroughs in Taiwan-Japan relations over the past five years confirm the special partnership between the two countries. “Our close ties can be seen in the opening of a Taiwan representative office in Sapporo, Hokkaido, the inking of an open skies agreement and investment protection pact, as well as a fishery rights accord putting aside 40 years of sovereignty disputes regarding the Diaoyutai Islands,” Ma said. “I look forward to even greater bilateral cooperation going forward.” [Taiwan-Japan]
• How Serious Is China in Cracking Down on N.Korea?
  The state-run Bank of China, one of the country's four major banks, said Tuesday it would cut all ties with the Foreign Trade Bank of North Korea, which has been tied to Pyongyang's nuclear and missile development plans. Although the BOC's announcement was in a briefly worded statement, the move has far-reaching implications. Until now, China has maintained that it would only take part in sanctions against North Korea at the UN level but refused to take financial sanctions against the repressive state led by the U.S. Due to its opposition to any financial sanctions being included in UN measures to pressure the North, Pyongyang in effect had little trouble securing capital for its nuclear ambitions. As a result, any sanctions against North Korea lacked teeth. The BOC decision could start to change that. It is so far the only Chinese bank to announce these steps, and it may simply have been motivated by business considerations because it has to maintain channels with U.S. financial institutions.
• China Probes N.Korea's Bank Accounts
  Chinese authorities have identified most of the accounts of North Korean companies and individuals in major Chinese banks, a diplomatic source in Beijing said Wednesday. Three or four North Korean banks in Dandong, the biggest trading hub between North Korea and China, have reportedly closed down. According to the source, Chinese authorities have combed through all North Korea-related accounts in major Chinese banks in an effort to implement sanctions imposed by the UN Security Council in the wake of the North's latest nuclear test. In the process, North Korea apparently tried to dodge detection by opening new bank accounts under borrowed or false names, but Chinese authorities traced these accounts too. [Financial sanctions]
• China rejects Pentagon accusation on its military
  China.org.cn, May 7, 2013 China expressed "firm opposition" to a Pentagon report on its military development, according to a Chinese Foreign Ministry spokeswoman on Tuesday. Hua Chunying answers questions at the press conference on Tuesday. "We firmly oppose the report and have made representations to the United States," Hua Chunying said at a daily press briefing. The U.S. Department of Defense on Monday released its annual report on China's military, which included more aspects but overlooked the country's peaceful defense policy. While recognizing that China has increased diplomatic engagement and advocacy for the issue of cyber security, the report claimed some of the cyber attacks against U.S. government computer networks in 2012 "appear to be attributable directly to the Chinese government and military." Hua said the Pentagon report unjustly criticizes China's justified and normal military development, plays up China's military threat and damages trust and cooperation between the two countries. "China's necessary and moderate military buildup, which meets the country's needs, is completely aimed at safeguarding the country's independence, sovereignty and territorial integrity and part of the country's justified rights," Hua said. [China confrontation] [Military balance]
• North Korean account closed by Bank of China
  Shanghai Daily via agencies, May 8, 2013 Adjust font size: Bank of China has closed the account of North Korea's main foreign exchange bank, which was hit with U.S. sanctions in March after Washington accused it of helping finance Pyongyang's nuclear weapons program. The state-run Foreign Trade Bank had been told of the closure and that its transactions had been halted, Bank of China, the country's biggest foreign exchange bank, said in a statement yesterday. It gave no reason for the closure and the bank declined to comment further. The closure is the first significant, publicly announced step taken by a Chinese entity to curb its dealings with North Korea in the wake of international pressure to punish Pyongyang over its banned nuclear and ballistic missile programs. The U.S. sanctions prohibit any transactions between U.S. entities or individuals and the Foreign Trade Bank. [Sanctions] [Appeasement]
• Bank of China Cuts Ties with N.Korean Bank
  The state-run Bank of China on Tuesday cut all ties with a key North Korean bank that has been tied to the North's nuclear and missile development plans. It was the first time a Chinese bank has taken such drastic sanctions against North Korea. The BOC in a short statement said it is freezing all accounts held by the North Korea's Foreign Trade Bank and halt all financial dealings with the bank. However, it did not say why it made the decision or how much money the North Korean bank's accounts contain. [Financial sanctions] [Appeasement]
• The South China Sea: What China Could Say
  by Mark Valencia 7 May 2013 In this Policy Forum Mark Valenica sets out the kind of statement China could issue in order to ‘clarify its position regarding its maritime claims and actions in the South China Sea.’ Valenica writes ‘For China such a statement would indicate it has “risen” and is ready to challenge the existing world system and contemporary interpretations of international law—if necessary to protect its interests.’ Mark J. Valencia is a Visiting Senior Scholar at the National Institute for South China Sea Studies, Haikou, China China’s claims in the South China Sea have been criticized as ambiguous. China has also been accused of having claims that are inconsistent with international law and the 1982 UN Convention on the Law of the Sea which it has ratified. More specifically China has been accused of threatening freedom of navigation and “stretching” international law. The United States and several ASEAN nations have repeatedly asked China to clarify its position regarding its maritime claims and actions in the South China Sea. China could oblige them by issuing a statement along the following lines. *As stated in its Law on the Exclusive Economic Zone and the Continental Shelf, China claims historic rights in much of the South China Sea. This claim is symbolized by its nine-dashed line map. This claim includes sovereignty over all the islands, rocks, reefs and banks within this nine-dashed line. It also includes sovereign rights over the living and non-living resources as well as the quality of the marine environment. The extent of its claim, the sharing of resources within it, and the details of the regime itself are subject to negotiation. [South China Sea]
• Military and Security Developments Involving the People’s Republic of China 2013
  DoD ANNUAL REPORT TO CONGRESS [China confrontation] [military balance]
• MOFA reaffirms Taiwan-Japan fishery pact
  MOFA reaffirms Taiwan-Japan fishery pactAn ROC Coast Guard Administration vessel accompanies a Taiwan fishing boat in waters near the Diaoyutais. (CNA) •Publication Date:05/07/2013 •Source: Taiwan Today The fishery rights agreement concluded between Taiwan and Japan resolved longstanding disputes in a peaceful manner, while maintaining the government’s rock-solid stance on inalienable sovereignty over the Diaoyutai Islands, the ROC Ministry of Foreign Affairs said May 7. “Article 4, insisted upon by our side, is a disclaimer ensuring that our sovereignty and territorial claims will not be undermined by the accord,” the MOFA said in a news release. The historic pact, signed April 10 after 17 rounds of talks over 17 years, allows Taiwan and Japanese boats to operate freely in a 74,000-square-kilometer area around the Diaoyutais, providing an additional 4,530 square kilometers of high-quality fishing grounds for Taiwan fishermen. [Diaoyu]
• Ma praises close Taiwan-Japan relations
  Ma praises close Taiwan-Japan relationsROC President Ma Ying-jeou (right) greets Nobuo Kishi, head of a Japanese parliamentary delegation, May 1 at the Presidential Office in Taipei City. (CNA) •Publication Date:05/02/2013 •Source: Taiwan Today ROC President Ma Ying-jeou lauded strong ties between Taiwan and Japan May 1, vowing to further expand exchanges on all fronts. The president made the remarks while receiving a delegation of Japanese parliamentarians headed by Nobuo Kishi, younger brother of Prime Minister Shinzo Abe, at the Presidential Office in Taipei City. Other members included Tsukasa Akimoto, Yohei Matsumoto, Nobuhide Minorikawa and Junzo Yamamoto. “The landmark bilateral fishery rights agreement signed April 10 after 17 years of hard work resolved the dispute over overlapping fishing grounds, allowing fishermen from both sides to operate in designated areas without interference, ” Ma said. “Its shelving of disagreements and focus on resource sharing conform to the spirit of our government’s East China Sea peace initiative.” Proposed Aug. 5, 2012, by Ma, the five-point initiative urges all parties making claims to the Diaoyutai Islands to refrain from antagonistic actions; maintain dialogue; observe international law; settle differences through peaceful means; and form a mechanism for the cooperative exploration and development of resources. [Territorial disputes] [Taiwan]
• US claims neutrality over Diaoyu Islands
  China.org.cn, May 3, 2013 The United States on Wednesday insisted that it maintains a neutral stance on the sovereignty of the Diaoyu Islands, following a warning from the Chinese ambassador to the United States over the issue. Patrick Ventrell, acting deputy spokesman at the US State Department, said the US does not take a position on the sovereignty of the islands. He called on all parties to manage their differences through peaceful means. "The point is we urge all parties to avoid actions that could raise tensions or result in miscalculations that would undermine peace, security and economic growth in this vital part of the world, so we say that to both sides," he said. Cui Tiankai, China's new ambassador to the US, told Washington not to "lift the rock off Japan only to let it drop on its own feet" on Tuesday. [US Japan alliance] [Diaoyu]
• N.Korea's Trade with China Dwindles
  North Korea now relies almost exclusively on China due to international sanctions and the closure of the Kaesong Industrial Complex, but trade with Beijing is also dwindling, the Wall Street Journal reported on Wednesday. The closure of the Kaesong complex means a loss of US$90 million annually. But China is being more active than ever before in implementing UN sanctions and showing "impatience with Pyongyang's increasing sabor-rattling," the paper said. As a result, Chinese exports to the North shrank 13.8 percent in the first quarter of this year to $720 million. Overall trade volume between the two countries had grown from $3.4 billion in 2010 to $5.9 billion in 2012 but is now on the decline. China has a huge share in the North Korean economy and "about two-thirds of North Korea's 351 joint ventures with foreign partners are Chinese," the daily said. The decline in exports between the two countries is likely to go on. The paper quoted Chinese President Xi Jinping at a forum in early April saying, "No one should be allowed to throw a region and even the whole world into chaos for selfish gains," which it said was a "veiled warning to Pyongyang." China has also tightened customs inspections of North Korean cargo travelling. Amid the tightened control, North Korea only sent goods to be displayed at a tourism expo held April 28 to May 1 in Dandong in China. In a similar exhibition last year, 300 North Koreans from 100 companies took part. [Trade]
• China's emotional ties to North Korea run deep in border city
  By Ben Blanchard DANDONG, China | Wed May 1, 2013 4:15am EDT (Reuters) - Peering at graphic pictures of supposed U.S. biological warfare efforts during the 1950-53 Korean War, Zhang Ping tugs on the sleeve of a visiting foreign reporter to complain about the barbarism visited on his compatriots during the conflict. "Too terrible, those Americans," he mutters, standing at a war museum on the Chinese side of the North Korean border, pointing out the pictures of infected animals and insects which China and North Korea say the United States dropped to poison their enemies. "We have been together with North Korea for over 60 years. They still need our help and we cannot abandon them now," adds the Chinese businessman, offering his own commentary on why North Korea matters so much to China. [China NK]
• Source: China proposed high-level visit to North Korea
  North Korea has yet to definitively respond to the possible overture for dialogue By Seong Yeon-cheol, Beijing correspondent A diplomatic source in Beijing said on Apr. 30 that China suggested its special representative for the Korean peninsula, Wu Dawei, visit North Korea. “The Chinese government suggested Mr. Wu visit North Korea after his recent visit to the US,” the source in China said. “North Korea has yet to approve or decline the visit.” Wu visited Washington from Apr. 22 to 24 for talks with senior American officials including Glyn Davies, the US special envoy for North Korea. The talks centered on the North Korean nuclear program and stabilization of the tensions on the Korean Peninsula. If he visits North Korea, Wu would be expected to convey the details of the talks with the US to North Korea and exchange thoughts with North Korean officials, gauging the possibility of resuming the six-party talks. Wu‘s visit to North Korea and the result of the talks between North Korea and China would have a significant effect on the political climate of the Korean Peninsula. If the visit goes ahead and a consensus is reached through the talks, the tensions that started with Pyongyang’s third nuclear test last February could be reduced. However, if the talks do not end well, the Korean Peninsula will likely remain stuck in political and military crisis or long-term stalemate. [China NK]
• Kurt Campbell: China could take a heavier hand on North Korea
  Posted on : May.1,2013 16:26 KST Kurt Campbell, former US assistant Secretary of State for East Asian and Pacific affairs Former US assistant Secretary of State says China will maintain its basic policy, but could use its influence to pressure Pyongyang By Park Byong-su, staff reporter “China perceives that North Korean provocations do not aid its strategic interests,” said Kurt Campbell, former US assistant Secretary of State for East Asian and Pacific affairs, on Apr. 30. “I believe that they will take a heavier hand in their dealings with North Korea than they have in the past.” Campbell, who oversaw US policy in Asia and the Pacific during US President Barack Obama’s first term in office, made the remarks in a press conference held at the Hyatt Hotel in Seoul. “While China probably will not entirely change its North Korea policy, it will alter it partially,” he said. [China NK]
• China struggles to tap its shale gas
  Reuters - A natural gas appraisal well of Sinopec is seen behind a treatment pond of drilling waste in Langzhong county, Sichuan province in this March 2011 photo. By Steven Mufson, BEIJING — In a remote corner of Sichuan with lush, terraced hillsides, oil exploration teams have been scaling cliffs to lay seismic charges and struggling to move heavy equipment along winding mountain roads. That is where China hopes to find vast stores of natural gas trapped in shale rock. The U.S. Energy Information Administration has estimated that China’s technically recoverable shale gas resources could be 50 percent bigger than those in the United States, where shale has transformed the energy sector. That has sparked hopes that unlocking those resources could help meet China’s relentlessly growing energy demand and ease its reliance on heavily polluting coal-fired power plants. But progress on China’s shale frontier has been slow. About 60 shale exploration wells have been drilled over the past two years, according to the consulting firm IHS CERA, about as many as are drilled in North Dakota every 10 days. And there has been no Chinese shale production. China’s shale gas deposits may be large, but they are remote, and in most places, there is not enough water to provide for the hydraulic fracturing, or fracking, technique used to create cracks that unlock gas trapped in the rock. ‘Above-the-ground factors’ More important, oil experts say, burrowing through China’s regulatory layers is no small feat. In the United States, independent oil companies bought mineral rights owned by private individuals, then pushed ahead with drilling and production. In China, lumbering state companies dominate the landscape, and mineral rights are owned by the state — although which state bureaucracy is in charge of regulation has been a matter of dispute. [Shale] [Governance]
• Pentagon Using China Satellite for U.S.-Africa Command
  By Tony Capaccio - May 1, 2013 4:46 AM GMT+1200 A U.S. lawmaker is questioning the Pentagon’s decision to use a Chinese commercial satellite to provide communications for its Africa Command. Use of China’s Apstar-7 satellite was leased because it provided “unique bandwidth and geographic requirements” for “wider geographic coverage” requested in May 2012 by the U.S. Africa Command, according to Lieutenant Colonel Monica Matoush, a Pentagon spokeswoman. Apstar-7 is operated by APT Satellite Holdings Ltd. (1045) The state-owned China Aerospace Science & Technology Corp. holds 61 percent of Hong Kong-based APT, according to data compiled by Bloomberg. The Pentagon contract was disclosed without details at an April 25 House Armed Services Committee hearing during questioning from Representative Mike Rogers of Alabama, chairman of the panel that oversees space programs. The contract “exposes our military to the risk that China may seek to turn off our ’eyes and ears’ at the time of their choosing,” Rogers, a Republican, said yesterday in an e-mailed statement. “It sends a terrible message to our industrial base at a time when it is under extreme stress” from the automatic budget cuts known as sequestration. [F&E]
• A Complex Calculus: China’s North Korea Dilemma
  April 30, 2013 By Julia Famularo It remains in Beijing’s self-interest to provide aid to Pyongyang. The alternatives, like a North Korean collapse, could be far worse. It appears that China is growing exasperated with instability on the Korean Peninsula. Former U.S. Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell recently remarked that “The most important new ingredient [in the North Korean crisis] has been a recognition in China that their previous approach to North Korea is not bearing fruit. That they are going to have to be much clearer and much more direct with Pyongyang that what Pyongyang is doing is undermining Chinese security…. There is a subtle shift in Chinese foreign policy. You’ve seen it at the U.N., you’ve seen it in our private conservations… I don’t think that subtle shift can be lost on Pyongyang. It’s not in their strategic interest to alienate every country that surrounds them. I think they have succeeded in undermining their trust and confidence in Beijing.” U.S. Ambassador to the United Nations Susan Rice similarly stated that the Chinese are “very much of the view that Kim Jong-un has gone too far, and that this now is a situation that has the potential to directly threaten their interests in the region.” [China NK]
• Beijing Orders Strict Implementation of N.Korea Sanctions
  The Chinese government has instructed agencies to strictly implement UN sanctions against North Korea imposed after the North's latest nuclear test. There are increasing signs that Beijing is losing patience with the antics of its impoverished ally. Back on April 17, the Chinese Transport Ministry sent a memorandum to subsidiary agencies instructing them to strictly implement UN Security Council Resolution 2094, the official Economic Daily reported Monday. A similar document was sent to the People's Bank of China, public security agencies, customs offices, and border patrol units. The ministry said UNSC Resolution 2094 bans the trade with North Korea of eight more items, including those related to nuclear and biochemical weapons and ballistic missiles, and luxury goods such as yachts and jewelry. It then stressed that the resolution must be implemented strictly "to fulfill international obligations." It also specified that three North Korean company representatives in China and North Korean agencies such as Korea Complex Equipment Import Corporation and the Second Academy of Natural Science were newly added to the list of UN sanctions targets. Since the North's third nuclear test in February, China has been more active than ever before in implementing UNSC sanctions. Beijing has even imposed sanctions of its own on the North, cracking down on illegal money exchange and remittance by Chinese branches of North Korean banks, and making it more difficult for North Korean laborers to obtain work visas. [Sanctions]
• China commits billions in aid to Africa as part of charm offensive - interactive
  Database reveals government has backed 1,700 projects on continent since 2000 in apparent attempt to win favour. The country's financial commitments are significantly larger than previous estimates Claire Provost and Rich Harris The Guardian, Monday 29 April 2013 17.58 BST China has committed $75bn (£48bn) on aid and development projects in Africa in the past decade, according to research which reveals the scale of what some have called Beijing's escalating soft power "charm offensive" to secure political and economic clout on the continent. The Chinese government releases very little information on its foreign aid activities, which remain state secrets. In one of the most ambitious attempts to date to chip away at this secrecy, US researchers have launched the largest public database of Chinese development finance in Africa, detailing almost 1,700 projects in 50 countries between 2000 and 2011. China's financial commitments are significantly larger than previous estimates of the country's development finance, though still less than the estimated $90bn the US committed over that period. Researchers at AidData, at the College of William and Mary, have spent 18 months compiling and encoding thousands of media reports to construct the database, and hope users will contribute further detail on the projects. The data, which challenges what has for years been the dominant story – Beijing's unrelenting quest for natural resources – is likely to fuel ongoing debate over China's motives in Africa. There are few mining projects in the database and, while transport, storage and energy initiatives account for some of the largest sums, the data also reveals how China has put hundreds of millions of dollars towards health, education and cultural projects. [Aid]

• China’s Forbearance Has Limits: Chinese Threat and Retaliation Signaling and Its Implications for a Sino- American Military Confrontation
  by Paul H.B. Godwin and Alice L. Miller [Conflict]
• China Seeks Soft Power Influence in U.S. Through CCTV
  by David Folkenflik April 25, 201312:15 PM At a time when so many major American news organizations are cutting back, foreign news agencies are beefing up their presence abroad and in the U.S. One of the biggest new players arrives from China and, more likely than not, can be found on a television set near you. CCTV, or China Central Television, is owned by the Chinese government. With more than 40 channels in China and an offshoot in the U.S., the broadcaster has been highly profitable for the country's ruling Communist Party, which is liking profits a lot these days. Navigating Two Media Traditions CCTV America Business News Anchor Phillip T.K. Yin was born and raised in the U.S. by parents who emigrated from mainland China. Yin used to work in investment and for CNBC and Bloomberg. He says he is mindful of the tension between the American tradition of an independent press and Chinese expectations that the media serve the state. And yet, he says, CCTV America has broadcast interviews involving allegations of major computer hacking incidents originating in China — hardly a flattering story. [Softpower] [Media]
• Blow for Cameron as China welcomes Hollande
  Beijing punishes PM for his meeting with Dalai Lama while French president gets full state visit treatment Nicholas Watt, chief political correspondent guardian.co.uk, Friday 26 April 2013 20.00 BST French president François Hollande meets Chinese president Xi Jinping in Beijing The French president, François Hollande, meets his Chinese counterpart, Xi Jinping, in the Great Hall of the People in Beijing, China. Photograph: Pool/Getty Images David Cameron's mission to change the focus of British foreign policy by boosting trade links suffered a setback after Downing Street was forced to abandon a trip to China as Beijing punished the prime minister for meeting the Dalai Lama. In a blow to Cameron, who had hoped to hold an annual summit with the Chinese leadership, the French president François Hollande was on Friday feted in Shanghai on a full state visit a few weeks after the prime minister was due to visit China. Cameron is understood to have abandoned the planned trip after Beijing indicated that he was unlikely to be granted meetings with senior figures. He is now expected to visit in the autumn, two years after his first and only visit as prime minister.
• Chinese Military Activity Increases in N.Korea Border Area
  The Chinese military has increased its activity in areas near the border with North Korea, the Washington Free Beacon reported Wednesday. The move seems to be part of preparations for a mass influx of refugees from the North should war ever break out on the Korean Peninsula. The American online media outlet said photos and eyewitness accounts of local residents also confirmed the increased activity. On April 17, photos posted online showed troops marching on a road in Shenyang in the direction of Dandong near the Apnok (or Yalu) River, and military vehicles carrying several tanks were spotted in Liaoyang, Liaoning Province near the border. [Media]
• Chinese premier stresses Peninsula denuclearization
  Xinhua, April 24, 2013 Chinese Premier Li Keqiang on Wednesday met with the Republic of Korea (ROK)'s foreign minister Yun Byung-se, reaffirming China's commitment to the denuclearization of the Korean Peninsula. [Denuclearisation]
• How do you solve a problem like Korea?
  By Tim Collard China.org.cn, April 25, 2013 [By Zhai Haijun/China.org.cn] North Korea currently poses a great challenge to the entire international community and – most acutely – to China. Chinese responses are always carefully calibrated, and highlight how difficult dealing with this issue has become. The problem for China is that it is difficult to identify a preferred outcome, and thus difficult to formulate a policy. China's main preoccupation is to maintain peace and stability in East Asia; the second priority is to prevent the emergence of a direct threat to China from foreign forces of any kind operating from the Korean Peninsula. Thus the status quo, uncomfortable though it is, is seen as preferable to any step which might carry a real risk of one of those eventualities. However, it is becoming increasingly clear that the status quo is not sustainable and that North Korea cannot be relied upon to preserve it.
• China calls Japan-U.S. island drill "provocative"
  BEIJING | Wed Apr 24, 2013 8:27am EDT (Reuters) - China said on Wednesday that "provocative actions" would not sway it from defending its territory, after Japan confirmed it would conduct military drills with the United States amid tension between Beijing and Tokyo over disputed islands. Japan said on Tuesday that the joint drill, scheduled for June off California, involved the recapture of an isolated island but was not aimed at scenarios involving a specific country, Japan's Kyodo news agency reported. China's Foreign Ministry spokeswoman, Hua Chunying, said "foreign pressure" could not sway China from protecting its territorial sovereignty in the East China Sea. "For any related provocative actions, the Chinese government will maintain a resolute response," Hua told reporters at a regular news briefing when asked about the drills. [Joint US military] [Japanese remilitarisation] [China confrontation]
• Debating China's No-First-Use Commitment: James Acton Responds
  James M. Acton Proliferation Analysis April 22, 2013 Any shift away from no-first use is likely to be viewed by the United States and its allies—rightly or wrongly—as provocative. My New York Times op-ed on the possibility that China is rethinking its no-first-use pledge has already attracted a number of thoughtful responses, including from Major General Yao Yunzhu of China’s Academy of Military Sciences and M. Taylor Fravel of the Massachusetts Institute of Technology, both of whom argue that Beijing is not changing its nuclear doctrine. I very much welcome this debate and emphasize from the outset that I hope I am wrong. Any shift away from no first use is likely to be viewed by the United States and its allies—rightly or wrongly—as provocative. So, hopefully China is indeed committed to its no-first-use policy. However, I am not entirely convinced that it is for a number of reasons, including a few that I did not have the space to elaborate on in my original op-ed. This debate started with the publication of China’s new white paper on defense, which omits any explicit mention of China’s long-standing no-first-use pledge. Yao, Fravel, and others have emphasized that the only nuclear mission explicitly discussed in the white paper is entirely consistent with no-first use—a point I acknowledge in my original op-ed. However, no first use necessarily involves renouncing other missions, something the new white paper does not do Acton is a senior associate in the Nuclear Policy Program at the Carnegie Endowment. A physicist by training, Acton specializes in nonproliferation, deterrence, and disarmament. James M. Acton Senior Associate Nuclear Policy Program [Nuclear weapons]
• PLA must protect China's overseas interests
  By Yue Gang China.org.cn, April 24, 2013 China's latest national defense White Paper spelled out the duty of the People's Liberation Army (PLA) to protect the country's overseas interests, as security issues involving marine energy and resources, strategic sea lines of communication, and Chinese nationals overseas are becoming increasingly prominent. First, the PLA should protect Chinese people overseas
• China "working on" persuading North Korea: U.S. officer
  By Terril Yue Jones BEIJING | Wed Apr 24, 2013 7:57am EDT (Reuters) - The top U.S. military officer said on Wednesday Chinese leaders had assured him that they were working on persuading North Korea to abandon its nuclear weapons program. China is North Korea's main diplomatic and financial backer and fought alongside the North in the 1950-53 Korean War. It has always been reluctant to apply pressure on the North, fearing a flood of refugees into China if North Korea were to collapse. But in recent months, China has begun to express impatience with North Korea and its threats of nuclear war, and with its 30-year-old leader, Kim Jong-un, grandson of state founder Kim Il-Sung. "I will leave here with the belief that the Chinese leadership is as concerned as we are with North Korea's march toward nuclearization and ballistic missile technology, and they have given us an assurance that they are working on it, as we are," U.S. Chairman of the Joint Chiefs of Staff General Martin Dempsey told reporters on the last day of a trip to China. "So, we think there's still time for North Korea's leaders to back away from further provocations and we certainly hope they take the opportunity to do so," he said. [China NK]
• Between China and America? Real Choices Facing Indonesia
  Edmund W. Sim | April 22, 2013 With the start of Asean’s Regional Comprehensive Economic Partnership talks expected next month, observers have raised repeated concerns about whether the RCEP represents a challenge to the Trans Pacific Partnership free trade talks that have been ongoing since 2008. Some are concerned that Asian countries will have to choose between the two sets of talks, a mutually exclusive choice between a China-centric trade agreement in the RCEP and a US-centric trade agreement in the TPP. Others posit that countries can make that choice based on tactical concerns and progress in negotiations. For example, a recent article in an Indonesian newspaper claims that Indonesia, currently in the RCEP talks, can join the TPP if RCEP talks do not progress as quickly. Are the RCEP and TPP really competing for members and agenda items? [Allegiance] [FTA]
• Park Plans China Visit Following U.S. Summit
  President Park Geun-hye plans to visit China for her second official overseas trip since she took office after a visit to the U.S. in early May, it emerged on Sunday. A senior government official said, "We have not discussed details with China yet, but we began looking into the possibility considering the fact that Chinese President Xi Jinping extended invitations several times." [SK China]
• Consequence management: Obama's new North Korea policy?
  By Fan Jishe China.org.cn, April 21, 2013 The ongoing crisis on the Korean Peninsula will likely last for some time before North Korea tones down its rhetoric. According to Foreign Policy's incomplete statistics, North Korea has issued more than twenty warnings against the United States, South Korea, and other countries following international sanctions over its third nuclear test in February. However, there are limited signs indicating North Korea is matching its warnings with substantial military moves. Many commentators, bloggers, or even scholars working on Northeast Asia security issues did not take these warnings seriously, making jokes regarding these consecutive warnings. Escalation from North Korea is more or less rhetoric in substance. This time the United States is doing business in quite a different way: Speak softly, and carry a big stick. In response to North Korea warnings and other moves, a White House spokesperson, the State Department and the Pentagon said that North Korean rhetoric was "unhelpful," "not constructive" and "concerning." The U.S. matches moderate rhetoric with real military moves. [Chinese IR]
• N. Korea accepts China's offer for dialogue
  senior Chinese official, such as top nuclear envoy Wu Dawei, could visit North Korea as Pyongyang indicated its willingness to talk with Beijing about ways to defuse tensions on the Korean Peninsula, a Japanese newspaper reported Saturday. North Korea conveyed the intention to China in mid-April, the Asahi Shimbun newspaper reported citing an unidentified source. This has made South Korea, the United States and Japan believe that Pyongyang is less likely to press ahead with a medium-range missile launch, it said.
• China to send North Korea envoy to Washington
  BEIJING | Fri Apr 19, 2013 7:09am EDT (Reuters) - China will send its special envoy on North Korea to the United States next week for talks on maintaining peace and stability on the Korean Peninsula, the foreign ministry said on Friday. Wu Dawei will also discuss denuclearization of the region, ministry spokeswoman Hua Chunying said at a daily briefing. He will visit at the invitation of Glyn Davies, Washington's special representative on North Korea, Hua said.
• How real is N. Korea's nuclear threat?
  By Zhao Jinglun China.org.cn, April 18, 2013 Pyongyang has disclosed (intentionally) U.S. targets for its nuclear ballistic missiles, including Washington, Colorado Springs and Hawaii. Is this for real, or just "drawing cakes to allay hunger," as the Chinese proverb goes? [Deterrent] [Military balance]
• Diaoyutais conference kicks off in Taipei
  Diaoyutais conference kicks off in Taipei ROC President Ma Ying-jeou extols the virtues of the Taiwan-Japan fishery agreement in an April 17 conference on the Diaoyutais. (Staff photo/Meg Chang) •Publication Date:04/17/2013 •Source: Taiwan Today •By Meg Chang An international conference on the Diaoyutai Archipelago got underway April 17 in New Taipei City, with experts and scholars sharing views on key issues affecting peace and stability in East Asia. In his opening remarks, ROC President Ma Ying-jeou reiterated that the island chain is an inherent part of the nation’s territory. “But while sovereignty cannot be divided, resources can be shared,” he said, adding that the recent signing of a landmark fishery rights agreement between Taiwan and Japan is a great start for future bilateral cooperation. The pact marks the most significant progress since confrontation between the two countries over the islands escalated in 2012, Ma said. “Moreover, it conforms to the spirit of the East China Sea peace initiative.” [Diaoyu]
• China Set to Deepen N. Korea Ties as Yalu River Bridge Rises
  By Bloomberg News - Apr 17, 2013 1:48 PM GMT+1200 Across the Yalu River dividing China and North Korea, towers that will support a sleek suspension bridge rise south of one that U.S. bombers targeted during the Korean War to prevent China from supplying its ally. The bridge into the northeastern Chinese city of Dandong, set to open next year, is a bet that trade will swell even as the U.S. pressures Communist Party leaders to exert economic leverage on the North to abandon its nuclear program. Secretary of State John Kerry said last week China needs to “put some teeth” into restraining Kim Jong Un’s regime. On a recent visit to Dandong, a city of 2.4 million people, Chinese traders said their biggest concern is increasingly savvy North Korean businesses driving down prices on clothing and other consumer goods, not government restrictions on commerce. They expressed little fear that United Nations sanctions targeting North Korea’s economy would limit their business or threaten a bilateral trade relationship that grew to $5.6 billion in 2012. [China NK] [Sanctions]
• China points finger at U.S. over Asia-Pacific tensions
  By Ben Blanchard BEIJING | Tue Apr 16, 2013 4:31am EDT (Reuters) - China's defense ministry made a thinly veiled attack on the United States on Tuesday for increasing tensions in the Asia-Pacific by ramping up its military presence and alliances in the region, days after the top U.S. diplomat visited Beijing. China is uneasy with what the United States has called the "rebalancing" of forces as Washington winds down the war in Afghanistan and renews its attention further east. China says the policy has emboldened Japan, the Philippines and Vietnam in longstanding territorial disputes with Beijing. China faces "multiple and complicated security threats" despite its growing influence, the Ministry of Defense said in its annual white paper, adding that the U.S. strategy meant "profound changes" for Asia. "There are some countries which are strengthening their Asia Pacific military alliances, expanding their military presence in the region and frequently make the situation there tenser," the ministry said in the 40-page document, in a clear reference to the United States. [China confrontation]
• White paper introduces policies, principles of China's armed forces'diversified employment
  English.news.cn 2013-04-16 10:14:19 BEIJING, April 16 (Xinhua) -- A white paper issued Tuesday by the State Council Information Office introduced the fundamental policies and principles followed by the diversified employment of China's armed forces. -- Safeguarding national sovereignty, security and territorial integrity, and supporting the country' s peaceful development. This is the goal of China's efforts in strengthening its national defense and the sacred mission of its armed forces, as stipulated in the Constitution of the People's Republic of China and other relevant laws. China's armed forces unswervingly implement the military strategy of active defense, guard against and resist aggression, contain separatist forces, safeguard border, coastal and territorial air security, and protect national maritime rights and interests and national security interests in outer space and cyber space. "We will not attack unless we are attacked; but we will surely counterattack if attacked." Following this principle, China will resolutely take all necessary measures to safeguard its national sovereignty and territorial integrity. [Military]
• China and North Korea: A Tangled Partnership
  April 16, 2013 | 0900 GMT Stratfor By Rodger Baker Vice President of East Asia Analysis China appears to be growing frustrated with North Korea's behavior, perhaps to the point of changing its long-standing support for Pyongyang. As North Korea's largest economic sponsor, Beijing has provided the North Korean regime with crucial aid for years and offered it diplomatic protection against the United States and other powers. To outsiders, China's alliance with North Korea seems like a Cold War relic with little reason for persisting into the 21st century. However, Beijing's continued support for Pyongyang is not rooted in shared ideology or past cooperation nearly as much as in China's own security calculations. . [China NK]
• Taiwan slipping off US agenda: panel
  VIEW FROM THE HILL:Political change in Washington, as well as the perceived warming of relations between Beijing and Taipei, are forcing Taiwan off the US’ radar, a panel said By William Lowther / Staff reporter in WASHINGTON With US Secretary of State John Kerry in Asia this weekend, a panel of Capitol Hill foreign affairs staffers warned that Taiwan had slipped off the US congressional agenda. Defense policy adviser Eric Sayers, a member of Virginia Republican Representative Randy Forbes’ staff, said that Taiwan was not mentioned often on Capitol Hill because Taipei had established such a close relationship with Beijing. [Taiwan]
• Pyongyang steps up war of words
  The Democratic People's Republic of Korea delivered a fresh round of rhetoric on Thursday with claims it has "powerful striking means" on standby for a launch, as Seoul and Washington speculated the country is preparing to test a medium-range missile during upcoming national celebrations. On the streets of Pyongyang, meanwhile, residents celebrated the anniversary of leader Kim Jong-un's appointment to the country's top Party post - one in a slew of titles collected a year ago in the months after his father Kim Jong-il's death. [Chinese IR]
• Joint military drills mask US' unilateral intent
  By Zhen Zehao China.org.cn, April 12, 2013 In the latter part of 2011, U.S. President Barack Obama announced that the U.S. military would hold to the principle of "returning to Asia-Pacific", declaring that America would help reshape the region's future. Over the past two years, America has staged a number of joint military drills with some of China's neighboring countries and these drills have resulted in a string of regional disputes. The U.S. move has fueled suspicions that the real target of the drills is rapidly-rising China, seen as possessing different values and national interests than the U.S. The likelihood that China could mount a serious challenge to America's sole global superpower status by 2015 also adds fuel to the fire. [Joint US military] [China confrontation]
• China Carries Out Artillery Drills Near N.Korean Border
  China recently moved an Army corps close to the North Korean border and staged a live-fire exercise with tanks and self-propelled guns. Experts believe Beijing is taking no chances in case a North Korean provocation leads to an emergency. The official Global Times on Monday reported that an armored brigade from a Shenyang mechanized infantry unit carried out live-fire maneuvers near the border on April 1. Japan's Yomiuri Shimbun quoted a source in Dandong as saying the Chinese military has also stepped up vehicle patrols along the North Korean border.
• Why China loves ‘The Daily Show’
  Posted by Max Fisher on April 11, 2013 at 12:39 pm On Tuesday, we wrote about a “Daily Show” video mocking North Korea that had racked up an astounding 3 million views on the Chinese Web portal Sina, making it one of the most viewed ‘Daily Show’ segments ever. The satirical news show, hosted by Jon Stewart, seems to have taken notice. On Wednesday night, it aired a five-minute segment noting its Chinese audience. Stewart joked, “I’ve been doing this show in the wrong country.” About 12 hours later, it’s looking as though Stewart might actually be right. That new clip has so far attracted about 5,000 views on DailyShow.com. But a version posted to Sina with Chinese subtitles appended has been viewed just shy of a quarter-million times. In other words, a “Daily Show” segment about the show’s popularity in China is already 50 times more popular online in China than it is in the United States. [Softpower]
• In sign of Chinese frustration with North Korea, ‘Daily Show’ clip mocking Kim racks up 2.8 million Chinese views
  Posted by Max Fisher on April 9, 2013 at 10:45 am “The Daily Show” is not big in China. But when the popular Chinese Web portal Sina posted an eight-minute segment from the show discussing the latest North Korean provocations, it racked up an astounding 2.8 million views and counting, as well as tens of thousands of comments, many of them praising the show. That appears to make it one of the most-watched “Daily Show” clips ever. It also raises questions about whether China’s flagging support for North Korea might reflect popular sentiment as well as Beijing’s own geopolitical calculus. On “The Daily Show’s” own Web site, the segment received 102,000 views for its first half and 58,000 for the second. That’s normally a respectable audience. In “The Daily Show’s” history, only one video on the show’s official Web site has ever attracted more views: a 2008 segment about Fox News’s coverage of Sarah Palin and gender issues. The clip pokes fun at a photo of Kim Jong Un that we’d noted the week before, an apparently photoshopped propaganda image, and at North Korean military technology. It also mocks North Korea’s over-the-top state media and portrays Kim as an adolescent girl, in a reference to the poster for the 2006 film “Little Miss Sunshine.” The clip is full of other references that might not be obvious to a Chinese viewer: South by Southwest, Windows 95. Others, such as a sense of U.S. national fatigue after the Iraq and Afghanistan wars, would seem to better resonate in the American context than the Chinese. China is not mentioned once. In other words, it’s not the sort of thing you’d expect to go massively viral in China. So what explains the enormous popularity? The “Daily Show” segment, without meaning to, may have hit on growing frustration among Chinese citizens, particularly middle-class urbanites, with their misbehaving ally. [Softpower]
• China's top political advisor meets Panchen Lama
  Xinhua, April 13, 2013 China's top political advisor on Friday met the 11th Panchen Lama, Bainqen Erdini Qoigyijabu, a spiritual leader of Tibetan Buddhism, in Beijing's Great Hall of the People. Yu Zhengsheng, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), the country's top political advisory body, heard a report by the Panchen Lama on his life and work since he was enthroned in 1995. The 11th Panchen Lama told Yu that he will carry forward his predecessors' long-upheld tradition of patriotism and love of the religion, and stick to his duties of serving believers. He said he will live up to the expectations of the country [Tibet]
• Chinese Song Mocks Kim Jong-un
  A song and video clip mocking North Korean leader Kim Jong-un's threats of war appeared on Chinese websites on Thursday. According to the anti-Beijing website Boxun based in the U.S., a Chinese lyricist uploaded a video with describing Kim as "Fatty the Third," and saying "nuclear weapons are not toys to play with and make fuss about." This screen grab from a video mocking North Korean leader Kim Jong-un shows lines that read This screen grab from a video mocking North Korean leader Kim Jong-un shows lines that read "Why don't you follow the right path? You're the third fat man from the Kim family." /Boxun The background to the song is a video clip of Kim inspecting military drills. The video was deleted in China but remains popular on YouTube.
• Chinese state media showing frustration with North Korea
  Posted on : Apr.12,2013 16:33 KST The front page of the Global Times website, captured on April 12. Newspaper columns ask that Pyongyang shed the illusion it can bully its way to nuclear armament By Seong Yeon-cheol, Beijing correspondent China’s state-run newspapers are urging North Korea to refrain from a reportedly imminent missile launch. The Global Times, the sister publication of the Chinese Communist Party’s People’s Daily newspaper, wrote in an Apr. 11 editorial that the one-year-old Kim Jong-un administration had gradually “taken an extreme path” by focusing on nuclear weapons development. It also said that North Korea “should drop its illusions that it can make the world stay silent over its desire for nuclear arms through its hard-line stance and deceptions.” “The international community will never permit North Korea to have the legal status of a nuclear country,” the editorial continued. [Chinese IR] [Double standards]
• China Warns Pyongyang Against 'Miscalculation'
  In a front-page column on Wednesday, the Chinese Communist Party's official People's Daily warned North Korea not to "miscalculate the situation." It was the most explicit warning yet from North Korea's sole ally not to overplay its hand. North Korea is apparently getting ready to launch one or more medium-range missiles from its eastern coast. The People's Daily carried a column by international affairs expert Hua Yiwen on the front page saying that even if North Korea has 100 reasons to build up defenses, it has no reason whatsoever to conduct a nuclear test or launch a ballistic missile in violation of UN Security Council resolutions. He added the North cannot shift responsibility for mounting tensions on the Korean Peninsula since last year onto others. [Media] – see following article
• Words to four nations over Korean Peninsula tensions
  (People's Daily Online)08:04, April 11, 2013 On April 6, Chinese Foreign Minister Wang Yi expressed severe concern over the current tense situation on the Korean Peninsula to U.N. Secretary General Ban Ki-moon over the phone, and said Beijing "does not allow troublemaking at the doorsteps of China." In wake of the rising tensions on the Korea Peninsula, for the regional peace and stability and to safeguard China's national interest, it is necessary to address relevant sides over the issue:
  To DPRK: do not misjudge the situation
  To the United States: do not add fuel to the flames
  To South Korea: do not miss the focus
  To Japan: do not fish in troubled water [Buildup]
• Korea is the focus, but this is China versus Japan
  Beijing has absolute control over North Korea. The crisis is all about disputed islands and the security of oil supplies The "crisis" on the 38th parallel has little to do with the two Koreas: it's about oil and gas for China, the prelude to an energy grab that will safeguard the expansion of the Chinese economy for decades to come. Six months ago Taiwanese and Japanese coastguard cutters were drenching each other in spray from water cannon, in footage now forgotten. The present pantomime, with hisses greeting North Korea as the villain, is not a replacement of the fountain show but its encore. [China NK] [Bizarre]
• AP Thinks China is “An Unreliable American Ally”
  Putting Korean Lipstick on the “Pivot” Pig
  Saturday, April 06, 2013 [revised and expanded April 9, 2013] Somewhere in Beijing, Chinese foreign policy strategists are laughing…and also cringing at AP National Security Correspondent Lara Jakes’ current piece on North Korea. Cringing because Jakes or her editors dropped a few clangers like this characterization of the pivot: Much of the policy has centered on China — both in strengthening diplomatic ties and economic trade. But China is an unreliable American ally and has been suspicious about the U.S. entreaty, which it sees as economic competition on its own turf. I’m sure China is disappointed to learn that it has been downgraded from global power to “unreliable American ally”. [US global strategy] [China confrontation] [Pivot] [Buildup]
• Senators urge engaging China in North Korea effort
  Video: Adm. Samuel Locklear III, commander of U.S. Pacific Command, responds to questions from Sen. John McCain (R-Ariz.) about North Korea at a Senate Armed Services Committee hearing on U.S. Pacific Command and U.S. Forces in Korea in review of the Defense Authorization Request for fiscal year 2014 and the Future Years Defense Program. By Ernesto Londoño and Karen DeYoung, Wednesday, April 10, 11:50 AM The United States is capable of responding to an attack from North Korea, but Washington and its allies must work hard to “preserve the peace,” the American commander overseeing operations on the Korean Peninsula said Tuesday as U.S. senators urged him to engage China more forcefully in that effort. Testifying before the Senate Armed Services Committee, Navy Adm. Samuel J. Locklear faced pointed questions about China’s patronage of Pyongyang, a line of inquiry that made it clear that several lawmakers think Beijing has not used its leverage over North Korea to end a series of threats and provocative actions. “I would think that China could play a key role in influencing the bellicose rhetoric and restoring some sense of calm to the peninsula,” Locklear said. “I believe sometimes the Chinese, in the way they approach it, are more nuanced than we are.” [China NK] [Buildup] [Pressure]
• History lesson: China’s reluctance to pressure North Korea
  Posted by Glenn Kessler at 06:00 AM ET, 04/09/2013 “China’s leaders issued thinly veiled rebukes to North Korea for raising regional tensions, with the president saying no country should throw the world into chaos and the foreign minister warning that Beijing would not allow mischief on its doorstep.” — Reuters , April 8, 2013 “The Obama administration, detecting what it sees as a shift in decades of Chinese support for North Korea, is pressuring China’s new president, Xi Jinping, to crack down on the regime in Pyongyang or face a heightened American military presence in its region.” — The New York Times , April 6, 2013 The Holy Grail in North Korea diplomacy is getting China to put pressure on its long-time protege. [China NK] [Pressure]
• Dangerous Waters: China-Japan Relations on the Rocks
  Asia Report N°2458 Apr 2013 EXECUTIVE SUMMARY The world’s second and third largest economies are engaged in a standoff over the sovereignty of five islets and three rocks in the East China Sea, known as the Diaoyu in Chinese and the Senkaku in Japanese. Tensions erupted in September 2012 when Japan purchased three disputed islands from their private owner to keep them from the nationalist governor of Tokyo. In response, Beijing implemented a series of measures including the establishment of overlapping administration in the disputed waters. Both sides’ law enforcement agencies and militaries currently operate in close proximity in disputed naval and aerial space. Unlike foreign ministries, these actors have less institutional interest in containing crises and enjoy an information monopoly allowing them to shape domestic perceptions. The two countries lack the mutual trust and communication mechanisms to manage incidents, let alone to discuss intentions or operating protocols. In the event of a skirmish, heightened nationalism, especially in China, could constrict the room for diplomatic manoeuvres to de-escalate the situation. [Territorial disputes] [Diaoyu]
• Taiwan’s strategic confusion
  April 4th, 2013 Author: Wen-Ti Sung, ANU Taiwanese president Ma Ying-jeou’s mantra of ‘no unification, no independence, and no use of force’ is coming under increasing strain. Taiwan US Trade This pressure is due to a number of factors — Washington’s benign neglect of Taiwan, Beijing’s ever-stronger leverage over Taipei, and Taiwan’s own strategic confusion. In its second term, the Obama administration appears to be abandoning its ‘pivot to Asia’ to focus more on the US homeland. In February, President Obama neglected foreign policy in his State of the Union address. And the departure of the leading architects of the so-called pivot to Asia — including Secretary of State Hillary Clinton and Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell — has taken away much of the impetus for the pivot. Replacing Clinton is the new Secretary of State, John Kerry, who has expressed significant reservations about the pivot. He is concerned that it might provoke an unnecessary reaction from China, and contribute to US–China tensions. [Taiwan] [China confrontation]
• Possibility of another Korean War
  By Xi Yazhou China.org.cn, April 7, 2013 Photo shows a KPA antiaircraft gun (AA Gun) battery. North Korea does not have advanced surface-to-air missiles, and relies on small-calibre AA Guns for its air defenses, which have limited effect against U.S. and South Korean air forces. Photo shows a KPA antiaircraft gun (AA Gun) battery. North Korea does not have advanced surface-to-air missiles, and relies on small-calibre AA Guns for its air defenses, which have limited effect against U.S. and South Korean air forces.[Guancha.cn] The situation on the Korean Peninsula has been tense in recent months. Soon after North Korea’s ballistic missile and nuclear weapons test, the United States and South Korea began conducting high profile joint military drills. The U.S. has already deployed B-52 and B-2 nuclear strike capable bombers to participate in the drills in response to the North’s increasingly loud rhetoric. Both North Korea and its southern neighbor are on full military alert, signaling to the world that the peninsula is on the precipice of a second Korean War. [Chinese IR]
• China Wants to Delay Summit with Korea, Japan
  The Chinese government has asked to postpone a trilateral summit with Korea and Japan that was scheduled to be held in Seoul in May, Kyodo reported Thursday. The leaders of the three Asian countries have met each year since 2008. The Korean government wanted this year’s summit to take place on May 25-26. But China requested a delay in view of a territorial dispute with Japan over the Senkaku or Diaoyu Islands, and the meeting is now likely to take place in the second half of the year, Kyodo said. Cheng Yonghua, China's ambassador to Japan, told reporters that Beijing is not avoiding the summit but does not want the leaders to become embroiled in unpleasant arguments face-to-face.
• North Korea Cramping China’s Anti-Access Style
  By Harry Kazianis April 5, 2013 Over the last several years nothing has piqued my curiosity more than China’s various anti-access developments. Things like “carrier-killer” missiles, ultra quiet diesel submarines, advanced mines, and even various types of cyberwarfare capabilities all illicit various reactions depending on where you sit in East Asia or even globally. The People’s Republic has surely developed some impressive capabilities with the intention of denying or delaying the arrival of large combat forces into a contested area of military operations. And while such capabilities are developed with the United States largely in mind, it might be North Korea that ends up negating some of Beijing’s new military capabilities – not America’s pivot or rebalance. [Missile defense] [Agency]
• No, China is not becoming an almighty superpower
  Fokke Obbema 3 April 2013 The fear of China becoming a global hegemon has permeated public discourse in the west. Journalists have been guilty of small self-indulgences with the truth to fit the narrative. The result is a distorted view of China in the western media. China is dangerous, a threat to our prosperity and our values – to journalists, it is tempting to report on this new world power from that angle. It is simple and often irresistible to play into our visceral fear of the “Yellow Peril” in its new guise as an economic powerhouse. Because then you will have a “story.” The price of that story is a distorted view of China. I felt that temptation myself when, in late 2011, I wanted to do an article for the De Volkskrant newspaper about the Chinese buying up the vineyards in France’s Bordeaux region. Reports in American and British papers had alerted me to the story, and to convince De Volkskrant of its importance I said to my superiors, “The Chinese in Bordeaux! The world famous wineries, the very industry that defines France in Chinese hands – what a mortal affront to the French soul! Is that a story or what?” I must have sounded convincing enough, because they told me I could make the trip. Once I arrived, the reality turned out to be quite different. The winemakers were not at all alarmed by these Chinese investments. They had been used to investors for a long time— the British, the Dutch, the Japanese and the Americans had already settled in, so what harm could a couple of Chinese do? Out of a total of over 11,000 châteaux, the Chinese had purchased no more than six relatively obscure vineyards. In other words, this was a very tiny wine stain on a vast white tablecloth. [China bashing] [Wine] [FDI]
• Chinese Troops Mass Along Border with N.Korea
  The Chinese Army has been on standby since March for an emergency by massing troops and fighter jets at the border with North Korea, the Washington Times quoted a U.S. government official. China's official Global Times carried the story prominently on Wednesday. Chinese warships conducted live-firing drills in the West Sea, where South Korean and U.S. forces were engaged in a joint annual exercise, the daily said. But Chinese military activities were concentrated in Jilin Province, which shares the longest border with the North. Forces were reportedly ordered to raise the alert status to the highest level on March 19.
• China Cut off Oil Supply to N.Korea After 2009 Nuke Test
  China completely cut off supply of crude and processed oil to North Korea for four months immediately after North Korea's second nuclear test in 2009. It seems China quietly imposed separate sanctions on North Korea independently of UN Security Council resolutions. Beijing could take similar measures this time as North Korea continues to threaten regional peace with its nuclear ambitions. Chinese crude oil is supplied to Sinuiju in North Korea through pipelines from the oil reserve in Basan on the outskirts of Dandong near the border. The processed oil is delivered by ship. According to Chinese Customs data, China exported no crude or processed oil to the North between July and October 2009. [Oil]
• Chinese Editor Fired Over Call to Abandon N.Korea
  Deng Yuwen Deng Yuwen The deputy editor of an official Chinese publication has lost his job over an article he wrote last week for the Financial Times arguing that China should abandon North Korea. In the op-ed piece on March 27, Deng Yuwen wrote, "North Korea's third nuclear test is a good moment for China to re-evaluate its longstanding alliance with the Kim dynasty. For several reasons, Beijing should give up on Pyongyang and press for the reunification of the Korean peninsula." Deng was the deputy editor of Study Times, the publication of the Central Party School of the Communist Party of China. Deng told the Chosun Ilbo by telephone that the article cost him the job. "I was relieved of the position because of that article, and I'm suspended indefinitely. Although I'm still being paid by the company, I don't know when I will be given another position." Deng said the Chinese Foreign Ministry was "very upset" by the article and made a call to the Central Party School to complain. [Chinese IR]

• Dealing with a Sore Lip: Parsing China’s “Recalculation” of North Korea Policy
  By Jenny Jun 29 March 2013 Chinese media went wild—as wild as censored media gets—immediately following North Korea’s third nuclear test in February 2013. Global Times criticized the event as a failure of China’s North Korea policy, while Weibo was flooded with frustrated comments that called for the denuclearization of the Korean peninsula and even the punishment of North Korea by cutting off Chinese oil and food aid.[1] What was more surprising was the number of Chinese elites and high-level officials who openly voiced dissatisfaction with the nuclear test and the overall state of the Sino-DPRK relationship. The most salient example was Deng Yuwen, deputy editor of the Central Party School’s Study Times, urging China to “abandon” North Korea in the Financial Times, which was then immediately translated into Chinese and widely circulated.[2] This rhetoric, coupled with the quick passage of United Nations Security Council Resolutions 2087 and 2094, led some to predict a major Chinese policy shift vis-à-vis North Korea; even President Obama commented that China is “recalculating” its policy.[3] Can this all be true though? The answer is yes and no. Yes, we are seeing a fundamental debate on China’s North Korea strategy at the highest levels of leadership. Yes, we are seeing a much more active China in nonproliferation efforts—tightening a grip on customs and North Korean banks following 2087 and 2094.[4] While these are noteworthy trends, it is premature to conclude that at the end of this hubbub a drastic policy change will emerge. No, China will not “abandon” North Korea, at least not in response to the recent nuclear test. And no, China will not fundamentally shift its current risk-averse approach. Instead, the key to parsing China’s “recalculation” is not to regard the debate as a dichotomy between retaining and abandoning North Korea, but to think of Beijing’s policy as having evolved from a one-dimensional policy based on a “friendship sealed in blood” to a multi-dimensional one that seeks diverse strategies—including punishments—to manage different types of risks surrounding the Korean peninsula. [China NK]
• China’s Glass Ceiling
  Sure, the Middle Kingdom is becoming a superpower, but it's always going to be No. 2. BY GEOFF DYER | MARCH 28, 2013 "It's over for America," a Chinese academic told me in late 2008, two days after Goldman Sachs turned itself into a commercial bank in order to fend off possible collapse. "From here on, it's all downhill." Sitting in Beijing as American capitalism seemed to be hanging by a thread, it was easy to believe that one era was ending and another beginning. The past half-decade should have been the glory years for the spread of Chinese influence around the world. After China's ravishing 2008 Beijing Summer Olympics, and its startling recovery from the financial crisis, it had a platform to push for a bigger voice in international affairs. At a time when the United States has been navel-gazing on its own deficiencies and beset by dysfunction and infighting in Congress, China has quickly become the main trading partner for a long list of countries, not just in Asia, which should give it all sorts of sway. And at the very least, many Chinese assume, the country should start to resume its role as the natural leader in Asia. Yet the years since the crisis have demonstrated something very different. Rather than usher in a new era of Chinese influence, Beijing's missteps have shown why it is unlikely to become the world's leading power [China rising] [China problems] [Decline]
• China Oil Tanker Seen at Iran Port for First Time Since EU Ban
  By Isaac Arnsdorf & Jasmine Wang - Mar 28, 2013 4:44 AM GMT+1300 Facebook A Chinese supertanker able to haul 2 million barrels of crude sent a signal from Iran’s largest export terminal in what may be the first visit of its kind since a European ban on insuring shipments in July. The Yuan Yang Hu, belonging to state-owned China Ocean Shipping (Group) Co., the country’s biggest shipping company, was at Kharg Island on March 21, according to vessel-tracking data from IHS Fairplay, a Redhill, England-based research company. The ship has since left the Persian Gulf, according to a signal today. The European Union banned its member states from buying, financing and insuring Iranian oil shipments from July 1 last year, as the bloc joined the U.S. in pressuring the Persian Gulf state to stop its nuclear program. The move affected 95 percent of the world’s tanker fleet because the vessels were insured by companies following EU law.
  There was speculation before and after the ban that the Chinese government would directly insure the cargoes or that the nation’s owners would seek alternative insurance. [Sanctions] [Response]
• China Finds Its Place
  by VIJAY PRASHAD An old colonial saw worries about the entry of the Asians into European colonies in Africa and its settler colonies (of Australia, New Zealand and South Africa) – they will arrive to be field labor and shop-keepers, multiply by migration and by procreation and then supplant the white man from their own colonies. A broadside by the Johannesburg based colonial L. E. Neame (The Asiatic Danger in the Colonies), published in 1907, warned that if the Asians came to Africa, these “inferior masses who, with all their virtues, will underlive and undersell” the Europeans. After the Chinese migrate to Australia, Neame worried, “the Chinaman would become sufficiently expert to do the work, and the white man be compelled to join the ranks of the unemployed, or accept a Chinaman’s wages and live down to the Chinaman’s standard.” The danger was not to the Africans or the Aborigines, whose well-being was not Neame’s problem, but to the European. A hundred years later, North Atlantic writings on the Chinese in Africa are far more genteel in their offensiveness. A few titles will suffice: China Safari: On the Trail of Beijing’s Expansion. Crouching Tiger, Hidden Dragon? Africa and China. The Age of the Dragon: China’s Conquest of Africa. The Dragon’s Gift: The Real Story of China in Africa. The Morality of China in Africa: The Middle Kingdom and the Dark Continent. Clichés abound. Dragons and Tigers must be part of the story. So too must hunting. Africa is subordinate; China is the predator. The story line from Old Neame is relatively unchanged. Then it was the small merchant and the agricultural worker who was the worry; now it is the Chinese state, its public sector firms and the Chinese entrepreneur. [China bashing] [Africa]
• Xinjiang in Focus of US Foreign Policy
  Vladislav GULEVICH | 28.03.2013 | 00:00 The Xinjiang Uyghur Autonomous Region is the western edge of China (Xinjiang means the new frontier in Chinese). It borders on Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Mongolia and the Indian state of Jammu and Kashmir. 9 million Uyghurs (Sunni Muslims) make up 45% of the total population of the Region. From time to time protests hit the streets calling for independence from China. The USA has a role to play here, it defends the separatists on international scene. The Uygur culture or rights don’t mean anything for Washington, but the Region enjoys strategically important geographic position being situated in the heart of Eurasia which is viewed as an area of its vital interests by the United States. For the Russian Empire and the Soviet Union the Xinjiang Uygur Region was an area where its interests conflicted with Great Britain. The region provided access to India. Today there is a conflict of interests with the United States, which finds it important strategically to deny Russia and China an access the Indian Ocean. [Separatism] [US global strategy]
• What’s Wrong with China’s North Korea Policy?
  Xie Tao Article March 26, 2013 Imagine you are the leader of a country with nuclear weapons. You know that three of your country’s neighbors also possess nuclear deterrence. Then one day you find out that another neighbor has nuclear ambitions. This country has been your protégé for six decades. But it is a peculiar relationship because you are ashamed of bragging about it at home or abroad. The protégé is a hereditary personal dictatorship. The question is: Would you give your blessing to the protégé’s nuclear ambitions or would you try your best—on your own or in cooperation with the international community—to prevent your apprentice from acquiring nuclear weapons? The choice should be a no-brainer. Any sensible leader would not want another nuclear power on its border, especially one ruled by a dictatorship. Yet, China seems to have chosen the opposite path of turning a blind eye to the nuclear ambitions of its protégé, North Korea. [Chinese IR] [Shill]
• Maleonn's mobile photo studio - in pictures
  Shanghai-based artist Maleonn has travelled around 25 Chinese provinces, photographing 200,000 people in a mobile photo studio The Guardian, Tuesday 26 March 2013 16.16 GMT Shanghai-based artist Maleonn (aka Ma Liang) has travelled around 25 Chinese provinces, photographing 200,000 people in a mobile photo studio and posting the images on his Weibo account [Photos]
• China buys 4 submarines, 24 fighters from Russia
  China.org.cn, March 26, 2013 China has agreed to buy 24 Su-35 fighters and four Lada-class submarines from Russia in recent arms purchase deals signed shortly before President Xi Jinping's just-concluded visit to Russia, China Central Television reported on Sunday. The deals raised concern among some regional players and media. Chinese observers said the reaction was "unnecessary" because the purchase is not directed at any third party. A Russian Su-35 fighter jet. The Su-35 is currently the most advanced Russian fighter jet in mass production. [File Photo] The purchases represented "the first time in nearly 10 years" that China had bought large military technological equipment from Russia, the report said. [Arms sales]
• 'No Change' in China's Attitude to N.Korea
  A veteran reporter for the Washington Post has contradicted widespread perception that Beijing's attitude to North Korea is hardening. "China's leaders don't buy the U.S. argument that it is in Beijing's interests to work with Washington to solve the North Korean nuclear mess," wrote John Pomfret in an op-ed piece for the paper on Saturday. [China NK]
• Why China won’t act against a nuclear North Korea
  By John Pomfret, Published: March 23 John Pomfret, a longtime Post foreign correspondent and editor, is the author of “Chinese Lessons: Five Classmates and the Story of the New China.” In his memoirs, former president George W. Bush recounts a story about North Korea and China. In October 2002, he invited China’s then-president, Jiang Zemin, to his Texas ranch. North Korea was developing nuclear weapons, and Bush wanted China’s help. According to Bush, Jiang told him that “North Korea was my problem, not his.” China did nothing. A few months later, Bush tried a different tack. He told Jiang in January 2003 that if North Korea’s nuclear weapons program continued, the United States would not be able to stop Japan from developing its own nuclear arsenal. Still nothing. A month later he warned China that if the problem was not solved diplomatically he would consider a military strike against North Korea. Only at that point did China react. Talks with North Korea were commenced, but the hermit kingdom continued its nuclear program and last month conducted its third nuclear test. [China NK]
• MAC finds majority back more cross-strait news flow
  MAC finds majority back more cross-strait news flowAn MAC poll shows that a majority of ROC citizens support expanded cross-strait information exchanges. (Courtesy of MAC) •Publication Date:03/25/2013 •Source: Taiwan Today •By Rachel Chan A majority of ROC citizens are in favor of expanding cross-strait communications and information exchanges via a range of media outlets, according to a recent poll released by the Mainland Affairs Council March 22. “As press freedom is a universal value shared by members of the international community, cross-strait news exchanges should be based on reciprocity and the free flow of information,” a MAC official said. “This is in line with President Ma Ying-jeou’s golden decade policy of expanding cross-strait communications and interaction among news media.” [Straits]
• China’s reach in the Indian Ocean
  March 25th, 2013 Author: Peter Drysdale, Editor, East Asia Forum China’s longstanding relationship with Pakistan and the challenge of China’s remarkable economic rise have encouraged many in the West to see India as a natural Chinese competitor and a useful pawn for the United States in Sino-American strategic play. A Chinese flag flutters in the wind as an oil tanker is anchored offshore in the distance near Zhoushan, China. Chinas push into the Indian Ocean is an inevitable part of its need to develop efficient supply routes across the back of Asia for energy and resource supplies out of the Middle East and Africa. (Photo: AAP) Certainly Chinese activity in Pakistan is commonly viewed through this prism by external observers. The Bush deal with India on the development of nuclear energy and the Obama administration’s subsequent initiatives on trade in military technology have set a new tone in US–India ties. The past decade has seen India emerge as an important target in regional and international security. India, it is hoped, will come to play what military thinkers call a force-multiplying role, buttressing US goals by helping to expand a zone of peace and prosperity in the Indian Ocean and in South Asia. India’s ’tilt to the United States’ is more or less taken for granted in many Western political-security circles. [Counterbalance] [Deal]
• China’s strategic interests in Pakistan’s port at Gwadar
  March 24th, 2013 Author: Ghulam Ali, Institute of Information Technology, Islamabad On 30 January 2013, the Port Singapore Authority (PSA) abandoned administrative control of Gwadar port in Pakistan — five years into a 40-year agreement. A crane carries a shipping container up at the storage of China Shipping Container Lines Co. in Shanghai on 10 March 2010. China will likely develop Gwadar port quickly by making a bigger investment than the PSA, but its current interests appear commercial, aimed at securing its energy supplies. (Photo: AAP) Pakistan has now handed over the ‘management and operation’ of Gwadar port to a Chinese company, and in another landmark decision, Pakistan has signed onto the Iran–Pakistan gas pipeline, much to the annoyance of the United States. Commentators argue that both agreements are a political stunt; the incumbent government made these decisions shortly before it completed its five-year term in an attempt to restore its declining popularity. It has now left the next government to deal with the consequences. Gwadar is located at the juncture of South Asia, Central Asia and the Middle East. It is close to the Iranian border and lies at the gateway to the Strait of Hormuz, a key world oil supply route. Some analysts argue the port could become China’s naval base in the Indian Ocean and enable Beijing to monitor Indian and US naval activities. The port has also been called the western-most link in China’s ‘string of pearls’ strategy. How valid are these claims and what is the port’s real importance to China?
• North Korea: an albatross around China’s neck
  March 21st, 2013 Author: Robert A. Manning, Atlantic Council North Korea’s recent nuclear test was a stark reminder to China that the days of a ‘lips and teeth’ relationship with Pyongyang, of Mao Zedong and Kim Il-sung half a century ago, are long gone. Nuclear test after nuclear test, missile test after missile test, Pyongyang has time after time ignored Beijing’s pleas not to take provocative actions. The humiliation, loss of face and strategic cost of the Korean tail wagging the Chinese dog has sparked renewed debate in China about whether its ties to North Korea are a strategic asset or a liability. Many prominent Chinese national security analysts have made compelling cases for ‘cutting North Korea loose’ for several years. Most recently, Shen Dingli, dean of Fudan University’s Institute for International Studies, made a bold argument for China to stop enabling North Korea in Foreign Policy magazine. Yet, to date, Beijing continues to follow a flawed strategic logic. This persists, as we have seen recently in China’s reluctance to support South Korean and US efforts to apply tougher sanctions on North Korea as a response to its nuclear test. [China NK] [MISCOM]
• Thatcher in row over sea slugs and fish lips on 1982 trip to China, papers show
  Then-British PM was also concerned about bread, butter and strawberry jam as a dessert option on banquet menu Alan Travis, home affairs editor The Guardian, Friday 22 March 2013 Margaret Thatcher's big trip to China in 1982 to open talks on the future of the then British crown colony of Hong Kong was blighted by a row over the menu for the official banquet she was to host for the Communist party leadership. The Foreign Office wanted to serve the 75 yuan-per-head set menu, which included sea slugs and fish lips, while Thatcher thought the 50-yuan option was sufficient as long as bread, butter and strawberry jam was deleted as a dessert option. Thatcher's personal papers show that despite the fact this was the first visit by a serving British prime minister to Beijing, she spent an astonishing amount of time fretting over the banquet before she had even left London.
  In the event the preparations were overshadowed by the fact that only one senior member of the Chinese leadership turned up for the banquet, which ended sober and early. The rest were at another banquet in the same building hosted by the North Korean leader, Kim Il-sung, where the toasts to "militant friendship" went on late into the night.
• China Ships No Oil to N.Korea in February
  China suspended shipments of crude oil to North Korea in February, Reuters reported on Thursday quoting Chinese customs data. China, North Korea's sole real ally, normally supplies 30,000-50,000 tons of crude oil a month to the North. Its crude oil shipments to North Korea totaled 523,041 tons in 2012. Some believe the suspension of shipments is further evidence that Beijing is losing patience with Pyongyang's brinkmanship tactics. They suspect it was triggered by the North’s refusal to listen to Beijing and cancel its nuclear test on Feb. 12. But a South Korean government official dismissed the speculation, saying it is quite usual for China not to ship crude oil to the North in February due to seasonal factors. According to the Korea International Trade Association in Seoul, China several times shipped no crude oil to the North in February between 2000 and 2012. There were only February shipments in four years -- 2001, 2004, 2009, and 2010 -- over the past 13 years, and their volume was well below average. The problem is that the Chinese government's official data do not reflect the whole picture. "China's free aid shipments of crude oil to the North aren't reflected in customs data," a Unification Ministry official here said. "So if no shipments are shown, it doesn't necessarily mean that there were none." "It's possible that China actually sent crude oil shipments to the North in the form of unofficial aid," he added. A diplomatic source in Beijing said, "There's no report yet that China has cut off crude oil shipments to the North. I don't think there's an urgent reason for China to take such an extreme measure." But another source said, "It's possible that China temporarily delayed crude oil supplies" to rap the North over the knuckles. In fact, rumors circulated for a while last month in Dandong that China cut off crude supplies. [China NK]
• China replaces Britain in world's top five arms exporters: report
  By Michael Martina BEIJING | Mon Mar 18, 2013 4:30am EDT (Reuters) - China has become the world's fifth-largest arms exporter, a respected Sweden-based think-tank said on Monday, its highest ranking since the Cold War, with Pakistan the main recipient. China's volume of weapons exports between 2008 and 2012 rose 162 percent compared with the previous five-year period, with its share of the global arms trade rising from 2 percent to 5 percent, the Stockholm International Peace Research Institute (SIPRI) said. [Arms sales]
• Former US Diplomat Warns Of Intractable US-China Tensions
  Phil Mercer March 15, 2013 SYDNEY — One of the key architects of Washington’s foreign policy focus on Asia says there will always be tensions in the relationship between the United States and China. Kurt Campbell, who last month retired as Assistant Secretary of State for East Asia and the Pacific after four years in the job, made the warning in a speech in Australia. In his first public address since leaving his post at the U.S. State Department, Kurt Campbell said the ability of China and the United States to co-exist in the Asia Pacific region is the most critical foreign policy challenge of the century. The former diplomat told a meeting of international policy experts at Sydney University that the relationship between Washington and Beijing will affect politics around the world. Campbell said that the leaders of the two great powers appreciate the need to find “contours of coexistence,” but there will always be tensions. [China confrontation]
• China Boosting Transport Links to N.Korean Border Region
  China is to lay bullet-train network to Dandong and Hunchun just in the doorstep of North Korea, a local daily in Shenyang reported Thursday. Beijing plans to complete a high-speed railway connecting Shenyang with Dandong, which faces Sinuiju in North Korea across the border, by 2015. The project requires building many tunnels and bridges to shorten the length of the track by dozens of kilometers from the existing 305 km line, which takes four hours. The bullet train traveling at up to 250 km an hour is to shorten the journey to just one hour. A 295 km high-speed railway connecting Dandong and Dalian is also to start construction this year. At the speed of 200 km/h, the journey will take an hour and 30 minutes. [Railways]
• Kim Jong Un Greets Chinese President
  Pyongyang, March 14 (KCNA) -- Kim Jong Un, first secretary of the Workers' Party of Korea and first chairman of the National Defence Commission of the DPRK, Thursday sent a congratulatory message to Xi Jinping, general secretary of the Central Committee of the Communist Party of China, president of the People's Republic of China and chairman of the Central Military Commission of the PRC.
• A U.S. Naval Blockade of China?
  By Rory Medcalf March 13, 2013 Once upon a time, not so long ago, there was much debate about whether war between major powers in Asia was even imaginable. It is a disturbing sign of how much the strategic environment has deteriorated that analysts are now starting to write publicly about how such a war might be fought. There is a growing literature on the U.S. concept of Air-Sea Battle, including the question of whether its use of conventional strikes against targets on the Chinese mainland would lead to wider escalation. Presumably this has struck a chord in the Chinese security debate – raising questions about the efficacy of an anti-access strategy against U.S. maritime forces – and perhaps that was the point. Now there's another emerging theme in American open-source speculation about how a U.S.-China conflict could unfold – a naval blockade. In one recent article, Sean Mirski sets forth what he sees as the elements of a potentially successful U.S.-led blockade strategy to impose huge economic costs on China in a hypothetical future confrontation or war. [Blockade] [F&E] [Conflict]
• China 'Under Pressure' Over Kim Jong-un's Slush Funds
  China has "come under fresh pressure" over North Korean leader Kim Jong-un's slush funds held in dozens of accounts in the country, the South China Morning Post reported on Wednesday. The daily quoted reports that bank accounts belonging to Kim under borrowed names and amounting to hundreds of millions of dollars have been found in Shanghai and other Chinese cities. Chinese bankers told the daily that the banks mentioned in the reports not only referred to Shanghai-headquartered banks but also Shanghai branches of foreign banks, the daily added. "It is up to the central bank's anti-money-laundering unit to investigate suspicious capital flows and deals," it quoted a banker close to the People's Bank of China as saying. "But given the political implications of this matter, the central bank would have to receive direction from the top leadership before taking concrete steps in conducting probes." It quoted Prof. Du Jifeng from the Chinese Academy of Social Sciences as saying international pressure to impose more sanctions on Pyongyang over the bank accounts "would create a dilemma for China's leaders." "Beijing would be reluctant to take action if the bank accounts were personal accounts of Kim Jong-un," Du was quoted as saying. "Beijing is worried that it could damage personal ties with the North Korean leader." A diplomatic source in Beijing also said it is unlikely that China will seize or freeze the accounts "unless it is proved that illicit activities are involved." In a press briefing on Tuesday, Chinese Foreign Ministry spokeswoman Hua Chunying denied knowing about the reports. She added China will handle the matter "in accordance with international rules and regulations as a permanent member of the UN Security Council and a responsible member of the international community." [Financial sanctions]
• Stranglehold: The Context, Conduct and Consequences of an American Naval Blockade of China
  February 12, 2013 Journal of Strategic Studies Summary In an all-out war with China, the United States could impose a naval blockade to pressure Beijing with minimal risk.
  Abstract The mounting challenge posed by China’s military modernization has highlighted the need for the United States to analyze its ability to execute a naval blockade. A blockade strategy is viable, but it would be limited to a narrow context: the United States would have to be engaged in a protracted conflict over vital interests, and it would need the support of key regional powers. The United States would also need to implement a mix between a close and distant blockade in order to avoid imperiling the conflict’s strategic context. If enacted, a blockade could exact a ruinous cost on the Chinese economy and state. [Blockade] [China confrontation]
• China: Sanctions on the DPRK not goal
  Xinhua, March 13, 2013 China on Tuesday reaffirmed its opposition to Pyongyang's nuclear tests, and committed to determining peaceful means for achieving the denuclearization of the Korean Peninsula. "China maintains that sanctions shall not be the objective, and we urges relevant parties to stick to dialogues and explore effective ways of attaining lasting peace and stability in the region under the framework of the six-party talks," Foreign Ministry spokeswoman Hua Chunying said at a daily press briefing. Hua made the remarks when asked to comment on the U.S. unilateral sanctions on the Democratic People's Republic of Korea (DPRK). She did not directly comment on the actions of the United States, but cited the latest resolution of the United Nations Security Council.
• Chinese State Media Hints at Implosion of N.Korean Regime
  China's quasi-official Global Times in a column on Saturday gave three reasons why North Korea's nuclear weapons harm Beijing's interests and mentioned the prospect of regime collapse in the North, which has long been a taboo subject. Retired major-general Luo Yuan, a prominent foreign policy hawk, wrote in the column, "It does not matter if you were a comrade and brother-in-arms in the past, if you harm our national interest then we'll get even with you." If (a nuclear-armed) North Korea faces an attack or spirals into a regime collapse, there will be a massive influx of refugees into China, Luo wrote. "This would create a huge political and economic burden on China's remote regions." Luo added that North Korea's nuclear weapons could spur South Korea and Japan to develop nuclear weapons too, an unacceptable situation for China. He also raised concerns over radiation leaks from nuclear facilities in North Korea, whose poor economic states makes it tough to manage those facilities safely [Collapse]
• China’s foreign minister says NK sanctions are “not a fundamental solution”
  Posted on : Mar.11,2013 15:37 KST Modified on : Mar.11,2013 15:40 KST Li Baodong (left), Kim Sook and Susan Rice, Chinese, South Korean and US ambassadors to the United Nations, chat on Mar. 7 after passing Resolution 2094 on North Korea at UN Security Council conference room in New York. (Newsis) After having pledged to fully enforce expanded measures, comments appear to cast doubt on China playing a key role in sanctions By Seong Yeong-cheol, Beijing correspondent China’s foreign minister said on Mar. 9 that the recent United Nations Security Council (UNSC) resolution sanctioning North Korea was “not a fundamental solution” to the nuclear issue. Yang Jiechi also said the only way to solve the problem was to “balance the interests of the different countries involved.” Yang made the comments during a conference with the Chinese and foreign press at the Great Hall of the People in Beijing, where he said that UNSC Resolution 2094 was “about reflecting the international community’s objections to North Korea’s nuclear test and proposing a solution to the issue through peaceful methods such as dialogue and negotiation.” [Sanctions]
• China's Xi to visit Africa as U.S. frets over Beijing influence
  BEIJING | Sat Mar 9, 2013 12:14am EST (Reuters) - Incoming Chinese president Xi Jinping's first trip as head of state will take him to Africa, the government said on Saturday, as China seeks to cement a growing trade and energy relationship that has caused alarm bells to ring in Washington. Chinese Foreign Minister Yang Jiechi said that Xi, scheduled to take over formally from Hu Jintao as national leader next week, would visit South Africa, Tanzania and Republic of Congo, as well as Russia, though he provided no exact dates. "China and Africa are good brothers, good friends and good partners. The visit by China's new national chairman to Africa fully shows the importance we attach to Sino-African ties," Yang told a news conference at China's annual parliament meeting. While in South Africa Xi will attend a summit of BRICS nations -- made up of Brazil, Russia, India, China and South Africa -- which will be held in Durban at the end of March, he added. China has courted Africa for decades, but its efforts have kicked into high gear in recent years as Beijing seeks to satisfy growing demand for raw materials and energy for its booming economy, now the world's second largest. Last year Hu offered $20 billion in loans to African countries over the coming three years, part of what China says is a no-strings-attached aid policy widely appreciated in Africa. Many Western nations though say China turns a blind eye to rights abuses and corruption in handing out aid and loans in its bid to get access to resources like oil, copper and timber.
• Analysis: Bellicose North Korea forces China to shift stance on old friend
  By Ben Blanchard and Sui-Lee Wee BEIJING | Sun Mar 10, 2013 12:15am EST (Reuters) - Six months ago China's state media was lauding North Korea as a great place to invest as both countries tried to promote a cross-border economic zone. One nuclear test, a long-range rocket launch and much sabre-rattling later and China is a central player in new U.N. sanctions against Pyongyang, something Chinese experts say marks a major shift in Beijing's policy toward its impoverished neighbor. At the same time, Chinese newspapers have been calling North Korea an ungrateful and unreliable liability. Businessmen and officials charged with building commercial ties don't even want to talk about the country. No one is suggesting China will abandon the regime of leader Kim Jong-un or even implement the new sanctions to the letter, but a relationship once regarded "as close as lips and teeth" is on thin ice as China's frustration grows. [China NK]
• Jia Qingguo: Sino-DPRK ties depend on the latter
  China.org.cn, March 8, 2013 China fully expects to maintain peaceful relations with the DPRK, but Beijing's attitude towards North Korea depends on what actions Pyongyang decides to make, says Jia Qingguo, a CPPCC member and associate dean at Peking University School of International Studies. Jia Qingguo, member of the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC) and associate dean of the School of International Studies of Peking University [Wang Wei/China.org.cn] Jia emphasized that China has been consistent in its policy towards the DPRK nuclear issue. "We have three aims: urging the DPRK to abandon its nuclear weapons program, that is, the denuclearization of the Korean Peninsula, ensuring peace, and solving issues through dialogue," he says. "China's policy would be very favorable for the DPRK if its actions were proper; however, if not, China would have to take sides with the international community to impose sanctions against the DPRK developing nuclear weapons," he adds. [Chinese IR] [China NK]
• China steps up on North Korea? Time to find out
  Posted By Mike Green Wednesday, March 6, 2013 - 12:25 PM Share Wayward ex-NBA star Dennis Rodman may think North Korean leader Kim Jong-un is a friend for life, but apparently Beijing does not. It looks like the U.N. Security Council will unanimously pass a resolution on Thursday that will impose Chapter Seven/Article 41 sanctions (measures short of armed force) on North Korea in response to Pyongyang's last nuclear test. I must confess that I did not expect this, but apparently even Beijing has a limit to its tolerance of North Korean provocations. Chinese MFA officials say that the North Koreans crossed the line this time by testing their last nuke after "unprecedented" pressure from Beijing not to embarrass Xi Jinping on the eve of his assumption of power at the National People's Congress. Senior Chinese officials are telling their South Korean counterparts that Xi Jinping has ordered an overall review of North Korea policy, and even Japanese officials are pleasantly surprised that Pyongyang has provided an excuse for strategic cooperation between Tokyo and Beijing in the midst of a tense Sino-Japanese stand-off over the Senkaku Islands. [China NK
• Puzzles of the Korean Peninsula
  By Shi Yang China.org.cn, March 7, 2013 A spokesman for the Supreme Military Command of North Korea announced on March 5, 2013 that it would nullify the Korean War Armistice Agreement signed in 1953, in response to the hostile policies and sanctions from both the U.S. and South Korea. Meanwhile, the North has also decided to halt the work of its delegation in Panmunjom, where the North and South Korean delegates usually meet for official talks. The North Korea's sudden "change of face" came a little faster than expected as mere days before the announcement was made, former American basketball star Dennis Rodman had visited Pyongyang and watched a basketball exhibition game together with Kim Jong Un in a friendly atmosphere. [Chinese IR]
• Cui Tiankai and Kurt Campbell on sound terms
  By Li Xiaohua China.org.cn, March 7, 2013 China's Deputy Foreign Minister Cui Tiankai today spoke of his sound relationship with U.S. Assistant Secretary of State Kurt Campbell, clarifying recent rumors that their relationship has been strained. Chinese Vice Foreign Minister Cui Tiankai (R) and U.S. Assistant Secretary of State Kurt Campbell shake hands during the first round of consultations on Asia-Pacific in Hawaii, the United States, June 25, 2011. [File photo] "I have established a really positive relationship in working with Mr. Campbell these years. I am sure he will tell you so [as well] if you interview him," Cui, a member of the Chinese People's Political Consultative Conference (CPPCC), told China Youth Daily after a group discussion. Cui, tipped to become China's ambassador to Washington soon, was claimed to have had an unpleasant experience at Mr. Campbell's farm when visiting the U.S., according to foreign media reports. However, Cui said, he did visit Mr. Campbell's farm, but nothing offensive happened. They got along very well. "In fact, our meeting was very significant" Cui added. When Mr. Campbell heard how Cui had once worked in the countryside of northeastern China's Heilongjiang Province and had actually driven tractors whilst there, he took out his own old tractor. "He asked whether I could drive it, so I drove it and mowed the grass. We were in very good spirits and took a picture in front of the tractor," Cui said. As a gift, Cui sent Mr. Campbell a tractor model when he visited the U.S. on the following occasion.
• Being a Mao is Easy, Except When It’s Not
  As Chinese officialdom gathers in Beijing to formally anoint a new generation of leaders, one figure in attendance offers a vivid challenge to a key part of the new leadership’s agenda. What makes Mao Xinyu, the only surviving grandson of Mao Zedong, threatening to China’s new leaders is not his championing of his grandfather’s old political theories. Instead, it’s the striking image he projects – an image sometimes comically at odds with the effort by new Communist Party head Xi Jinping to revamp the government’s reputation for bloat and indulgence. Mr. Mao is an expansively rotund man, which makes him easy to spot among the thousands of delegates who pour into Beijing for the annual gatherings of the National People’s Congress, China’s rubber-stamp parliament, and its advisory body, the Chinese People’s Political Consultative Congress. His gravitational pull was hardly diminished at the opening of this year’s NPC, as reporters rushed to surround him on the red-carpeted steps inside Beijing’s Great Hall of the People.
• Zhou Mingwei calls for improvements in China's national image
  By Wang Wei China.org.cn, March 5, 2013 With sustained economic growth propelling China into the number two spot in global economic rankings, the country's new leadership must now focus on promoting China's national image overseas, according to Zhou Mingwei, a CPPCC National Committee member and president of China International Publishing Group (CIPG). Zhou Mingwei, member of the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC) and president of China International Publishing Group (CIPG) [Chen Weisong/China.org.cn] Zhou made the above remark while participating in a panel discussion at the ongoing annual session of the Chinese People's Political Consultative Conference (CPPCC) National Committee, China's top political advisory body. Zhou argued that using the media to promote China abroad does not work as well as many think, primarily because China's national image is more related to the "Made in China" label and the Chinese people themselves, rather than to journalists and column inches. For years, the "Made in China" label has been one of the most recognizable labels in the world due to China's rapidly developing manufacturing industry; however, many worry that these products tend towards low-quality. "No matter the brand, they represent China's image," Zhou said. "Improving international perceptions of Germany and Japan are largely attributed to their products," he added. [Image] [Quality]
• Diplomats say US, China have agreed on new sanctions to punish North Korea for nuclear test
  By Associated Press, Updated: Tuesday, March 5, 8:14 PM UNITED NATIONS — The United States and China have reached agreement on a new draft sanctions resolution to punish North Korea for its latest nuclear test, U.N. diplomats said late Monday. The U.N. Security Council announced late Monday evening that it will hold closed consultations on North Korea and non-proliferation at 11 a.m. (1600 GMT) Tuesday. The diplomats, speaking on condition of anonymity because no official announcement has been made, said the United States is expected to circulate a draft resolution to the full council at the meeting. Council members are then expected to send the draft to their capitals for review. All 15 council members approved a press statement condemning Pyongyang’s nuclear test and pledging further action hours after North Korea carried out its third atomic blast on Feb. 12. [UNUS] [Test]
• China hikes defense budget, to spend more on internal security
  By Ben Blanchard and John Ruwitch BEIJING | Tue Mar 5, 2013 3:49am EST (Reuters) - China unveiled another double-digit rise in military expenditure on Tuesday, but for a third year in a row the defense budget will be exceeded by spending on domestic security, highlighting Beijing's concern about internal threats. Spending on the People's Liberation Army (PLA) will rise 10.7 percent to 740.6 billion yuan ($119 billion), while the domestic security budget will go up at a slightly slower pace, by 8.7 percent, to 769.1 billion yuan, according to the budget released at the opening of parliament's annual meeting. The numbers underscore the ruling Communist Party's vigilance not only about territorial disputes with Japan and Southeast Asia and the U.S. "pivot" back to the region, but also about popular unrest over corruption, pollution and abuse of power, despite robust economic growth and rising incomes. The number of "mass incidents" of unrest recorded by the Chinese government grew from 8,700 in 1993 to about 90,000 in 2010, according to several government-backed studies. Some estimates are higher, and the government has not released official data for recent years.
• Shifting emphasis: Beijing’s reactions to North Korea nuclear test
  March 3rd, 2013 Author: Jia Qingguo, Peking University China has persistently tried to help North Korea to sustain its economy and shield it from tougher international reactions to its unpredictable and threatening behaviour on the development of nuclear weapons and missiles. [Unpredictable] [Chinese IR]
• Economist Dambisa Moyo: China can transform Africa
  February 28, 2013 -- Updated 1530 GMT (2330 HKT) Dambisa Moyo is a Zambian economist, investment strategist and author She's been arguing for years that international aid stifles Africa's development Essential is to focus on what China can do for Africa , she says Moyo says capital, labor and productivity will help spur Africa's economic growth (CNN) -- Zambian economist Dambisa Moyo is an outspoken critic of international aid, arguing for years that foreign handouts stifle Africa's development, perpetuate corruption and hinder the continent's growth. A New York Times bestselling author, Moyo first grabbed international headlines with her 2009 book "Dead Aid: Why Aid is Not Working and How There is a Better Way for Africa." Since then, she's penned two more books, on the subject of the decline of the West, and the effects of China's commodities rush. In a new interview with CNN's Robyn Curnow, Moyo explains why she's optimistic about the future of Africa. She looks at the positive impact that China can have on the continent and details the key drivers that will spur Africa's economic growth. Foreign investors race for African land An edited version of the interview follows. CNN: The aid debate is so different from before ... Dambisa Moyo: So much has happened in the last five years -- whether you're in Africa, South America or Asia, nobody talks about aid anymore. Policy makers themselves are going out and issuing debts in the market. My own country, Zambia, did a fantastic bond, a $750 million 10-year bond, last September. The discussion is so much more about job creation and investment, which is such a fantastic story and it's obviously partly to do with the fact that the traditional donors are having a financial problem, fiscal problem, on their balance sheets. They just don't have the capital anymore to hand out cash like they did in the past. CNN: The Chinese story has been thrown into the mix, has that changed the landscape? DM: Yes, absolutely, but in a strange way it's exactly what we need in terms of delivering economic growth and meaningfully reducing poverty. We need jobs, we need investment, we need trade, we need foreign direct investment, whether investment domestically but also from the outside. It's not some magic pill, everybody knows that this is the formula, and finally the Chinese are showing up, again, not just in Africa, but around the world with that elixir, that mix of opportunities to really transform these countries. [ODI]
• Korean Shipbuilders Fall Behind Chinese Rivals
  Korean shipbuilders were outperformed by their Chinese competitors in exports last year, 11 years after Korea in turn overtook Japan in 2001. The Korean Chamber of Commerce and Industry on Wednesday said analysis of data from the Korea International Trade Association puts exports by Korean shipbuilders at US$37.8 billion in 2012, compared to China's $39.2 billion. The change is due to the fact that Korea was more affected by the global downturn than China. Korean shipbuilders saw exports decrease around 30 percent on-year in 2012 while their Chinese and Japanese rivals posted drops of only 10.3 percent and 14.6 percent [China competition]

• Hawkish Chinese General Joins Social Media Fray
  By DIDI KIRSTEN TATLOW This screen shot from China's Twitter-like microblog service Sina Weibo shows a new account apparently belonging to a nationalist major general, Luo Yuan. This screen shot from China’s Twitter-like microblog service Sina Weibo shows a new account apparently belonging to a nationalist major general, Luo Yuan. Print BEIJING — A hawkish and well-connected Chinese major general, Luo Yuan, who last year reportedly recommended turning islands in the East China Sea claimed by both China and Japan into a shooting range, has debuted in China’s enormously popular world of microblogging with the announcement that “we must fight for our beloved fatherland, beloved party, beloved army and beloved people!” [Social media]
• China Considers Overhaul To Streamline Government
  by The Associated Press February 26, 2013 5:11 AM BEIJING (AP) — The Ministry of Railways operates ultramodern bullet trains but its singular focus on rail at a time of booming car ownership and air travel makes it a relic from an era when 100 ministries ran China's planned economy. That could soon change. China's new Communist leaders are considering another shake-up of a sprawling bureaucracy that has added market regulators and shed agencies that once dictated prices and told companies what to produce. Modernizing the rail ministry — a Soviet-style behemoth with 2.1 million employees, its own courts and police and 1.7 billion passengers last year — by making it part of a transportation "super ministry" would be a likely priority. Such change would be politically fraught since it threatens top jobs and influence, the lifeblood of party factions. And it could require years to complete. But reformers say it is urgently needed to keep the world's second-largest economy growing strongly. [Railways]
• KMT Honorary Chairman Lien meets Xi in Beijing
  KMT Honorary Chairman Lien meets Xi in BeijingKMT Honorary Chairman Lien Chan (left) meets CCP General Secretary Xi Jinping Feb. 25 in Beijing. (CNA) Publication Date:02/26/2013 Source: Taiwan Today By Rachel Chan Lien Chan, honorary chairman of the ruling Kuomintang, and Xi Jinping, general secretary of the Chinese Communist Party, met Feb. 25 in Beijing, further boosting cross-strait relations and understanding. The two political heavyweights discussed a variety of issues pertaining to cross-strait relations, including ways of taking exchanges to new heights. Following the meeting, Lien said Taipei and Beijing should strengthen consensus on establishing a balanced, equal and effective political structure for peaceful and sustainable development of cross-strait relations. “But for the time being, the two sides should work on building more constructive cross-strait relations,” he added. [Straits]
• Chinese Public May Hold Key to Change N.Korea
  Human rights activists in China demonstrated in China's Guangzhou on Saturday condemning North Korea for its recent nuclear test and accusing Beijing of failing to restrain Pyongyang's nuclear ambitions. Demonstrations also took place in front of the North Korean Consulate in Shenyang, as well as in Changchun and Hefei in northeastern China. Although they were small, the fact that the demonstrations took place at all in multiple locations across China demonstrates a shift in sentiment among the Chinese public about North Korea. Chinese Netizens criticized comments from Beijing officials apparently seeming to protect the North and are demanding economic sanctions and even military steps to deal with Pyongyang's belligerent behavior.
• China’s Central Asia Problem
  Bishkek/Beijing/Brussels | 27 Feb 2013 China’s influence is growing rapidly in Central Asia at a time when the region is looking increasingly unstable. China’s Central Asia Problem, the latest report from the International Crisis Group, examines Beijing’s strong relationship with its neighbours in that troubled region (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan). Already the dominant economic force in the region, it could soon become the pre-eminent external power there, overshadowing Russia and the U.S. But the Central Asian republics are increasingly beset by domestic problems. They are also vulnerable to a potentially well-organised insurgent challenge. Jihadists currently fighting beside the Taliban may re-focus their interest on the region after the 2014 NATO withdrawal from Afghanistan. Many in Beijing are alarmed by the range of challenges Central Asia faces.
• How China and the U.S. misunderstand one another
  Posted by Max Fisher on February 26, 2013 at 3:33 pm Senate Minority Leader Sen. Mitch McConnell, Chinese Leader Xi Jinping and Senate Majority Leader Sen. Harry Reid meet in Washington. (Alex Wong/Getty Images) Senate Minority Leader Mitch McConnell, Chinese Leader Xi Jinping and Senate Majority Leader Harry Reid meet in Washington. (Alex Wong/Getty Images) Fellow Washington Post blogger and Great Wall Szechuan House enthusiast Ezra Klein has a great post on what China’s hackers got wrong about Washington. Like many of the city’s own denizens, he writes, the hackers seemed to assume that there must be some sort of top-down master plan, which they actively sought to uncover, driving policy and politics here. Part of that may have been a product of the hackers (or, presumably, their allegedly military bosses) buying into Washington’s myth of itself, and part may have been China perceiving and misperceiving the American system through the lens of its own. But the reverse is also true: Washington sometimes has a habit of misunderstanding China’s internal machinations by assuming, just as China so often does with the U.S., that their system is more like our own than it really is. Klein’s post, which mostly focuses on Washington, also repeats a few of its common misapprehensions about China. This only further proves Klein’s point, of course, but it’s a reminder that the reverse can also be true. The question of why China hacks American businesses and government offices is a complicated one. It’s informed by China’s insecurity, its sense of itself as a nation that’s weaker than it should be and that needs any edge it can get. It’s about the Chinese leadership’s perception that America is a hostile force bent on the Communist Party’s destruction. And, yes, it’s about stealing valuable information because that information has value. [China confrontation] [Perception]
• You Can't Hack a Steakhouse What China doesn't get about how Washington works.
  BY HALEY BARBOUR, ED ROGERS | FEBRUARY 25, 2013 Last week, we learned that the Chinese government had hacked into the computers of some of Washington's most prominent organizations -- law firms, think tanks, news outlets, human rights groups, congressional offices, embassies, and federal agencies -- not to steal intellectual property or unearth state secrets, but rather to find out how things get done in the nation's capital. According to the Washington Post, hackers were "searching for the unseen forces that might explain how the administration approaches an issue … with many Chinese officials presuming that reports by think tanks or news organizations are secretly the work of government officials -- much as they would be in Beijing." In other words, it appears that Chinese hackers have a lot of time on their hands and don't know much about Washington. There are probably instances where a massive database and a fancy algorithm can tell you what you need to know about a place, but D.C. isn't one of them.
• What China’s hackers get wrong about Washington
  Posted by Ezra Klein on February 25, 2013 at 9:29 am “Start asking security experts which powerful Washington institutions have been penetrated by Chinese cyberspies,” report my colleagues Craig Timberg and Ellen Nakashima, “and this is the usual answer: almost all of them.” “All of them,” in this case, is exactly as inclusive as it sounds. The targets aren’t just the White House, the Federal Reserve and the major federal agencies. They’re Washington’s law firms, think tanks, news organizations, human rights groups, contractors, congressional offices and embassies. The Chinese are hacking everybody and anybody. The Chinese have been so aggressive in their hacking that it’s become something of a status symbol in Washington, the institutional equivalent of appearing in the New York Times wedding section. If you’re not being hacked by the Chinese, do you really matter? A basic fact behind China’s cyberwar — and Russia’s cyberwar, and Iran’s cyberwar — is that America spends more on its military than the next 13 top-spending nations combined. We spend about five times what the Chinese do, and we’ve been spending that much for a long time. [Hacking] [Governance] [Military expenditure]
• UN deputy chief content with China's DPRK role
  By Chen Boyuan China.org.cn, February 25, 2013 UN Deputy Secretary-General Jan Eliasson has acknowledged China's role in helping the United Nations denuclearize North Korea. Eliasson made the remark on Friday in Beijing during his first visit to China in his role of deputy UN chief. Eliasson denied possessing any knowledge that North Korea is planning another nuclear test, saying the United Nations has received no such confirmations. Nevertheless, he hoped that there would be some measure of restraint to re-establish calm on this "very important issue that has dangerous implications," and "avoid escalation." "There is a major responsibility for the DPRK government. We hope there will be a road back as soon as possible to a political process. There is an instrument in the Six-Party talks. And there is a need for diplomacy to make sure that dangerous escalation does not take place," he said. "This region has been characterized by stability, economic growth. It's a powerhouse not only to Asia, but to the world, so that China and the UN are both interested in seeing a denuclearized North Korea," said Eliasson.
• Peace cannot be achieved unilaterally
  By Jin Liangxiang China.org.cn, February 24, 2013 It is always a global concern whether China will adhere to its peaceful development road. The latest remark by CPC General Secretary Xi Jinping in late January kindled yet another round of discussions. Xi says that China will stick to its road of peaceful development, but will never give up its legitimate rights or sacrifice its national core interests. His speech actually could be interpreted as the reflections of Chinese policy makers and scholars in response to the challenges the nation's peaceful development strategy now faces. It is true that peace is a main ingredient of China's national character. Over the course of its extensive history, the country has been an agricultural society more prosperous than any of its neighboring nomadic communities and therefore has occasionally fallen victim to aggressions with the purpose of depriving wealth. Nevertheless, stability and peace have always been the common aspiration of both the ruling class and grassroots people. [Peaceful rise]
• Chen Shui-bian sentenced
  Xinhua, February 23, 2013 Former leader of Taiwan Chen Shui-bian on Friday was sentenced to 20 years in prison as a combined punishment for a list of crimes he committed. Taiwan's High Court on Thursday also announced a combined imprisonment of 20 years for Chen's wife Wu Shu-chen. In addition to the jail term, the court decided to fine Chen 250 million New Taiwan dollars (8.4 million U.S. dollars) and Wu 200 million New Taiwan dollars. The couple has been convicted of embezzlement, bribery and money laundering in relation to mergers and acquisitions for some Taiwanese financial institutions. Chen has been held in custody since November 2008. Wu has not been imprisoned due to her poor health. [Corruption]
• Reasons for Leaving China, and the Emergence of the Asian Century
  Posted on February 21, 2013 by China Briefing China is not the only location for export-driven manufacturing, and the evolution of emerging Asia is leading businesses to adventures elsewhere Op-Ed Commentary: Chris Devonshire-Ellis Part two of a three part series. To read part one please click here. Feb. 21 – A little over 13 years ago, as the final seconds of the 20th Century ticked down, every headline seemed to predict the rise of China and the development of what would probably become known as the “Chinese Century.” The 1800s were dominated by the British Empire, the 1900s had belonged to the United States, and now China’s rise would see the development of the Middle Kingdom as a notable global force. While there are many who still believe that China’s ascension to the top of the global power pyramid is going to happen, being that it’s only been 13 years in, it is difficult to make predictions about a century that most of us will not live to see out. Yet, even from this early vantage point, it appears that the China dominant perspective may have been misjudged; or, to be polite, a bit overly optimistic.Reasons for Leaving China, and the Emergence of the Asian Century Posted on February 21, 2013 by China Briefing China is not the only location for export-driven manufacturing, and the evolution of emerging Asia is leading businesses to adventures elsewhere [Ageing society] [China problems]
• Chinese professor says six-party talks on NK denuclearization have run their course
  Posted on : Feb.20,2013 16:13 KST Robert Gallucci gives the keynote address at the opening ceremony of the Asan Nuclear Forum, held on Feb. 19 at the Grand Hyatt Hotel in Seoul. (provided by the Asan Institute for Policy Studies) Shi Yinhong says Beijing-Pyongyang relationship is in a state of crisis, due to NK nuclear program By Seong Yeon-cheol, staff reporter Shi Yinhong, 62, professor of international relations at Renmin University, said, “The tough sanctions against North Korea led by the US and South Korea have failed. It is probable that China, which values stability on the Korean peninsula, will not take part in strong sanctions against the North in the future.” Shi is a renowned Chinese expert on international relations. He was interviewed by the Hankyoreh at the Asan Nuclear Forum at the Grand Hyatt Hotel in Seoul, which was hosted by the Asan Institute for Policy Studies on Feb. 19 and 20. [Test] [China NK] [Chinese IR]
• China urges calm on DPRK
  China Daily, February 19, 2013 Adjust font size: China on Monday dismissed a media report stating that the Democratic People's Republic of Korea had informed Beijing of plans to carry out more nuclear tests. A Foreign Ministry spokesman warned against any actions that could worsen the situation on the Korean Peninsula. Diplomacy is ongoing amid tensions on the peninsula. Japan will send a veteran diplomat to China for three days from Tuesday, according to Japan's Kyodo News Agency. Observers said averting a looming crisis requires a restrained approach, and more attention should be paid to diplomacy. Spokesman Hong Lei said he "did not know where the Reuters report came from" when asked to confirm the report on Friday. The story said the DPRK had told China that it is prepared to carry out one or even two more nuclear tests, or another rocket launch this year. [China NK]
• Trust among Chinese 'drops to record low'
  China Daily, February 18, 2013 Adjust font size: Trust among people in China dipped to a record low with less than half of respondents to a recent survey feeling that "most people can be trusted" while only about 30 percent trusted strangers. The Blue Book of Social Mentality, the latest annual report on the social mentality of China, analyzed respondents' trust toward different people and organizations and drew a conclusion that trust in society is poor. The trust level was 59.7 points out of a full mark of 100 points. In 2010, the trust level was 62.9 points. The study, conducted by the Institute of Sociology under the Chinese Academy of Social Sciences, was based on a survey that asked more than 1,900 randomly selected residents in seven cities including Beijing and Shanghai about their opinions on trust. The latest poll also found that in China, family members are viewed as the most trustworthy, followed by close friends and acquaintances. It showed that around 30 percent of the people polled trusted strangers on the street and about 24 percent trusted strangers online.
• State-run Chinese media defending Beijing’s handling of North Korea
  Posted on : Feb.18,2013 15:12 KST North Korean leader Kim Jong-un and his wife Ri Sol-ju, lead a group of North Korea’s military leadership on Feb. 16 in Pyongyang going to pay tribute to Kim Il-sung and Kim Jong-il on what would have been former leader Kim Jong-il’s 71st birthday. (KCNA) China has been an object of international criticism for its soft line on NK, particularly since last week’s nuke test By Park Min-hee, Beijing correspondent China’s state-run media rushed to defend Beijing against charges of policy “failure” amid the fallout over North Korea’s third nuclear test last week. Meanwhile, a battle of nerves is taking shape over China’s North Korea policy, with Beijing resisting calls from Seoul, Washington, and Tokyo for a harder line. The Chinese state-run Xinhua news agency defended Beijing’s policy on North Korea in a Feb. 16 new analysis titled “Chinese experts see U.S.-DPRK antagonism as root cause of nuke test.” The piece blamed Washington instead, saying, “History has proven that a country threatened by force and sanctions would maintain and further develop its own military strength.” “The United States should engage in serious reflection over this situation,” it continued. [China NK]
• US and China butting heads over North Korea
  Posted on : Feb.15,2013 14:39 KST At the UN, China trying to balance its support for North Korea with condemnation of Pyongyang’s provocations By Park Hyun and Park Min-hee, Washington and Beijing correspondents The US and China clashed once again at a Feb. 12 emergency meeting of the UN Security Council, this time over the wording of a statement denouncing North Korea's third nuclear test. Observers are predicting a rocky road ahead as the two sides try to bridge their differences over additional sanctions. According to Feb. 13 reports in Foreign Policy magazine and accounts from diplomatic sources, Susan Rice, the US ambassador to the UN, made a proposal early in the meeting for a UNSC resolution on a "swift, credible, and strong" response to prevent North Korea from making further progress with its nuclear and ballistic missile programs. The draft text submitted at the meeting described the nuclear test as a "clear threat to international peace and security" and included a recommendation that the resolution be based on Chapter VII of the UN Charter. This chapter would have to be invoked for the resolution to have any real binding force on a member nation. Chapter VII includes Article 41 on non-military action and Article 42 on military action. A resolution referring to Chapter VII is rare due to these two articles, which are binding for member states.
• China wages a quiet war of maps with its neighbors
  By William Wan, Saturday, February 16, 12:45 AM BEIJING — Bitter maritime disputes between China and its neighbors have recently sent fighter jets scrambling, ignited violent protests, and seen angry fishermen thrown in jail. But beneath all the bellicose rhetoric and threatening posture, China also has been waging a quiet campaign, using ancient documents, academic research, maps and technical data to bolster its territorial claims. The frenetic pace of such research — and the official appetite for it — comes after decades of relative quiet in the field and has focused heavily on the two hottest debates: China’s quarrel with six other nations over a potentially oil-rich patch of the South China Sea and its tense feud with Japan over a small sprinkling of land called the Diaoyu Islands by the Chinese and the Senkaku Islands by the Japanese. For some Chinese academics, the now-heavy demand for such work marks a near reversal of what they experienced early in their careers. In past decades, some say, territorial disputes were often considered too sensitive a topic because China was leery of disrupting its relations with its neighbors. [Territorial disputes] [Media] [Double standards]
• China in Muted Response to N.Korean Nuclear Test
  China reacted cautiously to North Korea's latest nuclear test, despite apparently making last-minute efforts behind the scenes to stop it. Chinese Foreign Minister Yang Jiechi summoned North Korean ambassador to Beijing Ji Jae-ryong on Tuesday to lodge a formal protest and discussed a response on the phone with U.S. Secretary of State John Kerry and South Korean Foreign Minister Kim Sung-hwan. But there was no forceful public condemnation from Beijing. In his conversations with Kerry and Kim, Yang mostly called for "calm and restraint" from neighboring countries. And a letter of protest handed to the North Korean ambassador was merely a slight revision of a statement after the North's second nuclear test in 2009. Beijing also opposed the inclusion of a clause in a UN Security Council statement denouncing the nuclear test that would have provided grounds for military action. The clause was then left out of the initial draft. Guo Chongli, China's former ambassador to Kenya, said in a discussion hosted by a Hong Kong daily that Beijing's opposition to the nuclear test "does not mean China is against all of North Korea." Guo added that North Korea's "rise and fall has a profound effect on China's security interests." [China NK] [Test]
• China stuck between support for North Korea and displeasure with nuke test
  Posted on : Feb.14,2013 14:58 KST A domestic debate is ongoing in China over whether Beijing should continue to prop up NK, or move towards stronger US ties By Park Min-hee, Beijing correspondent After North Korea pushed ahead with its third nuclear test, China’s dilemma has been growing more and more complicated. Despite efforts at dissuasion and pressure from China not to conduct another test, North Korea went ahead with it anyway, showing the limits of China’s influence on the North. However, China still holds the key to sanctions in the United Nations Security Council (UNSC). Observers are watching closely to see what China will choose to do from here. [China global strategy]
• Rethinking the US-China-Taiwan triangle
  By Brantly Womack Taiwan’s future is with China, not against China. However, no new image of the triangular relationship of Washington, Beijing, and Taipei has replaced the security triangle formed in the Cold War era. Taiwan will neither be remolded into a uniform part of the People’s Republic of China nor will it achieve global recognition as a sovereign state, and yet discussion of its options is often reduced to the extremes of either reunification or independence. [China confrontation] [Taiwan]
• China summons DPRK ambassador
  China.org.cn, February 12, 2013 China "firmly" opposes the latest nuclear test conducted by the Democratic People's Republic of Korea (DPRK), according to a statement issued by the Chinese Foreign Ministry on Tuesday. "On Feb. 12, 2013, the DPRK conducted another nuclear test in disregard of the common opposition of the international community," said the statement, adding that "the Chinese government is firmly opposed to this act." Chinese Foreign Minister Yang Jiechi also summoned DPRK ambassador to China Ji Jae Ryong later on Tuesday to lodge a solemn representation [Test]
• Chinese Are Growing Sick Of 'Crazy Dog' North Korea
  Agence France Presse | Feb. 13, 2013, 7:31 AM | 3,344 | 3 afp Chinese social media users berated authorities for their relatively mild response to North Korea's nuclear test, with one likening Pyongyang to a "crazy dog" that had humiliated Beijing. The hostility towards China's defiant neighbour contrasted with the official response from Beijing -- expressing "firm opposition" but reiterating calls for calm and restraint and not mentioning any reprisals or sanctions. [Test]
• Kurt Campbell: China should accept U.S. enduring leadership role in Asia
  By YOICHI KATO/ National Security Correspondent WASHINGTON--As Washington implements its “rebalance to Asia” strategy, it will be important for China to accept the enduring and strong role of the United States in the region, said Kurt Campbell, outgoing U.S. assistant secretary of state for East Asia and Pacific affairs. In an exclusive exit interview with The Asahi Shimbun to review major diplomatic issues in the Obama administration's first term, Campbell rejected perceptions of a U.S. decline, emphasizing, “We will be a leading country for decades to come.” [Hegemony] [Hubris] [China confrontation]
• Deputy Director of the Chinese Foreign Affairs College, Su Hao Speaks on DPRK Nuclear Issue
  A conference on the DPRK Nuclear issue took place between Chinese and Russian scholars by video link between Beijing and Moscow on Wednesday of this week. There the Deputy Director of the Chinese Foreign Affairs College, Su Hao made a very interesting statement which was leaked to the media. Here is a translation: “The DPRK recently launched a satellite as we all know, and may have already obtained some form of nuclear capacity both to meet its own security needs, and at the same time to realize domestic political objectives.” Su Hao pointed out that following the DPRK’s 2012 launch, its hopes of achieving certain domestic political objectives are more apparent than ever. The DPRK has always desired to join the ranks of great powers, and there is no more effective way of doing this than actions such as test firing satellites. Su Hao went on to argue that the DPRK’s present leader Kim Jung-un is operating largely based on the will of the previous generation of leadership, and otherwise failing to do so would threaten the legitimacy of his government. At the same time, this young leader desperately needs political accomplishments, and can demonstrate his leadership talent through a major event like this [a satellite launch]. In sum, Su Hao discussed that even though the DPRK’s launching of a satellite was based primarily on domestic political considerations, it is important not to completely ignore its desire for national security. This could increase the DPRK’s bargaining power with the United States, and its strategic deterrence with respect to the ROK, and could result in political and economic assistance. “Once the DPRK has gained some bargaining chips, it might consider playing a more constructive role vis-a-vis the international community. Perhaps it will not be long before conditions are right for the DPRK to return to the Six-Party Talks.” Su Hao was also quoted in an excellent report by Qin Xuan of the Southern Weekly saying “that the DPRK’s need to conduct a nuclear test is not as strong as many otherwise think, and that the international community should not be so nervous.” [China NK]
• Chinese firm voices opposition to US sanctions
  Xinhua, February 11, 2013 Poly Technologies Inc., a leading defense company in China, on Monday voiced strong objection to U.S. sanctions on the firm and urged immediate corrections. China Poly Group Corporation [File Photo] In a statement released right after the sanctions were announced on Monday, the firm said that it is absolutely groundless and unreasonable that the United States imposed the sanctions according to its own laws or regulations. "We have never helped any countries or regions develop any banned weapons, nor have we exported or promised to export weapons or technologies to any countries or regions that are under United Nations Security Council Resolutions Sanctions," the firm said. The Beijing-based firm, a subsidiary of state-owned giant China Poly Group Corporation, said that it has strictly observed China's laws and regulations as well as relative international laws and treaties. "We hereby demands the U.S. side to respect the fact and immediately lift the sanctions," the firm said. [Sanctions]
• Chinese cultural product exports rise 16.3 pct
  Xinhua, February 11, 2013 Exports of cultural products rose 16.3 percent in 2012 from the previous year to 21.73 billion U.S. dollars, according to customs data.
• Chinese firm voices opposition to US sanctions
  Xinhua, February 11, 2013 Poly Technologies Inc., a leading defense company in China, on Monday voiced strong objection to U.S. sanctions on the firm and urged immediate corrections. China Poly Group Corporation [File Photo] In a statement released right after the sanctions were announced on Monday, the firm said that it is absolutely groundless and unreasonable that the United States imposed the sanctions according to its own laws or regulations. "We have never helped any countries or regions develop any banned weapons, nor have we exported or promised to export weapons or technologies to any countries or regions that are under United Nations Security Council Resolutions Sanctions," the firm said. The Beijing-based firm, a subsidiary of state-owned giant China Poly Group Corporation, said that it has strictly observed China's laws and regulations as well as relative international laws and treaties. "We hereby demands the U.S. side to respect the fact and immediately lift the sanctions," the firm said. [Sanctions]
• Chinese cultural product exports rise 16.3 pct
  Xinhua, February 11, 2013 Exports of cultural products rose 16.3 percent in 2012 from the previous year to 21.73 billion U.S. dollars, according to customs data.
• China’s patience wearing thin as North Korea plans another nuclear test
  By Associated Press, Updated: Monday, February 11, 8:28 PM DANDONG, China — China’s patience with North Korea is wearing thin, and a widely-expected nuclear test by the latter could bring that frustration to a head. Beijing signaled its growing unhappiness by agreeing to tightened U.N. sanctions after North Korea launched a rocket in December, surprising China watchers with its unusually tough line, which prompted harsh criticism from Pyongyang. And while China isn’t expected to abandon its communist neighbor, it appears to be reassessing ties a year after new North Korean leader Kim Jong Un took office. The question is for how long China, itself under new leader Xi Jinping, will continue to back North Korea’s nettlesome policies. “Perhaps Kim Jong Un thinks Xi Jinping will indulge him. Perhaps he’s in for a surprise,” said Richard Bush, Director of the Center for Northeast Asian Policy Studies at the Brookings Institution in Washington D.C.
• China Eclipses U.S. as Biggest Trading Nation
  By Bloomberg News - Feb 11, 2013 5:01 AM GMT+1300 China surpassed the U.S. to become the world’s biggest trading nation last year as measured by the sum of exports and imports of goods, official figures from both countries show. U.S. exports and imports of goods last year totaled $3.82 trillion, the U.S. Commerce Department said last week. China’s customs administration reported last month that the country’s trade in goods in 2012 amounted to $3.87 trillion. China’s growing influence in global commerce threatens to disrupt regional trading blocs as it becomes the most important commercial partner for some countries. Germany may export twice as much to China by the end of the decade as it does to France, estimated Goldman Sachs Group Inc.’s Jim O’Neill. “For so many countries around the world, China is becoming rapidly the most important bilateral trade partner,” O’Neill, chairman of Goldman Sachs’s asset management division and the economist who bound Brazil to Russia, India and China to form the BRIC investing strategy, said in a telephone interview. “At this kind of pace by the end of the decade many European countries will be doing more individual trade with China than with bilateral partners in Europe.” [China rising] [Trade]
• Westward Ho! As America pivots east, China marches in the other direction.
  BY YUN SUN | FEBRUARY 7, 2013 In November, Barack Obama became the first sitting U.S. president to visit Burma, and the first to visit Cambodia. As part of his administration's pivot to Asia, Obama has ratcheted up his diplomacy with the region. Besides Southeast Asia, which is moving closer to the United States at the cost of its relationship with China, Obama has also re-emphasized his security relationship with China's rival Japan. But as the United States pivots out of the Middle East and Afghanistan and into East Asia, Beijing is debating a pivot of its own: a grand strategic proposal to shift its attention from East Asia and rebalance its geographical priority westward to Central Asia, South Asia, and the Middle East. The strategy, called "Marching West," was recently articulated by Wang Jisi, dean of the School of International Studies at Peking University and one of China's most important strategic thinkers, in an October article in the Global Times newspaper. The proposal has passed the stage of academic research, and the front-runners of Beijing's foreign-policy apparatus have been mobilized to study feasibility, implementation, and potential reactions. The Chinese Academy of Social Sciences, China's most prominent think tank, will be holding an internal conference to study Marching West, according to a Beijing-based scholar. Meanwhile, the U.S. Embassy in Beijing is quietly investigating Marching West, according to several people who spoke with U.S. officials about the strategy. It's a bold idea. As Washington rebalances to Asia, Wang sees the relationship between the United States and China growing increasingly contentious and zero-sum. He argues that because both powers are seeking to expand their influence in East Asia, a head-on military confrontation with the United States might become inevitable. Beijing thinks Washington is trying to block China's rise in the East through strengthened military alliances, sabotaging China's ties with the Association of Southeast Asian Nations and undercutting China's effort to lead the region's economic integration by pushing the U.S.-centered (and China-free) Trans-Pacific Partnership. In response, Wang advocates enhancing China's presence, resources, diplomatic efforts, and engagement in Central Asia, South Asia, and the Middle East. [China global strategy]
• Jets roar over Pacific as US, Japan, Australia conduct military drills
  Published February 07, 2013 Associated Press ANDERSEN AIR FORCE BASE, Guam – Fighter jets from the U.S. and two key allies roared into western Pacific skies Thursday in the combat phase of annual exercises that have gained importance as the region responds to the rise of China and other potential threats. The Cope North drills — which could soon swell in participants — are aimed at preparing air forces of the U.S., Japan and Australia to fight together if a military crisis erupts. They also send a vivid reminder to Beijing that America's regional alliances are strong, though officers leading the maneuvers say they are not looking to bait the Chinese military. "The training is not against a specific country, like China," Japan Air Self-Defense Force Lt. Gen. Masayuki Hironaka said. "However, I think (the fact) that our alliance with the U.S. and Australia is healthy is a strong message." The three allies began flying sorties together earlier in the week around the U.S. territory of Guam in a humanitarian phase of the exercises, dropping emergency assistance in packages that wafted down under parachutes to jungle airfields. On Thursday, fighter jets were joined by bombers, transport planes and tankers that refuel the fighters in midair. For the first time, Japanese tankers were joining the drills. U.S. officials said they believe more allies, particularly New Zealand and the Philippines, will join the exercises soon. [US joint military] [Alliance] [China confrontation]
• In Brennan's Private Sector Stint, a Chinese Connection
  Text Size Published: Wednesday, 6 Feb 2013 | 6:56 PM ET By: Eamon Javers CNBC Washington Reporter John Brennan, President Obama's nominee to be director of the CIA, like many government employees took a three-year turn through the private sector before rejoining the administration – but it was nothing like the blandly profitable corporate stints of other federal bureaucrats. When Brennan went to work for a private intelligence contractor called The Analysis Corporation, he entered a murky milieu of transnational private spy firms with taxpayer-fueled profits. And he found himself working for a Ferrari-driving foreign boss who made much of his money on the dangerous streets of Iraq. In that world, Brennan was forced to deal with a situation he would never have faced in his earlier days at the CIA: Brennan's corporate parent was looking for lucrative contracts from Chinese state-owned companies at the same time Brennan's unit worked on sensitive US intelligence issues in Washington. Brennan wound up as an employee inside a multi-layered company with offices in Baghdad, where it sought sensitive security business from the Iraqi government, suburban Virginia, where it sought sensitive intelligence business from the US government, and Beijing, where it sought sensitive intelligence and security business from the Chinese. [F&E]
• N.Korea-China Rift Deepens Over Nuclear Test
  China and North Korea have apparently fallen out over Beijing's pressure on Pyongyang to abandon plans for another nuclear test. China pressured the North on three occasions late last month, calling in the ambassador and his second-in-command. Diplomatic sources in Beijing on Wednesday said the Chinese Foreign Ministry summoned North Korean Ambassador Ji Jae-ryong to lodge a strong protest after the North's National Defense Commission issued a statement on Jan. 24 criticizing China.
• China ends free postgrad tuition
  inhua, February 6, 2013 The State Council on Wednesday announced that the country will begin to charge tuition fees for all its postgraduate students while offering more flexible choices of student financial aid. Starting from the fall semester of 2014, all newly matriculated postgraduates in Chinese universities will be charged tuition fees, the cabinet said in a statement released after an executive meeting chaired by Premier Wen Jiabao. The move marks the phasing out of a system that allowed students of government-funded postgraduate programs to enjoy tuition waivers. Instead, the country will improve its financial aid system, introducing more kinds of scholarships to help students cover their tuition fees, the statement said. [Education]
• Peeved Kim Jong-un Snubs China, Russia
  North Korean leader Kim Jong-un mailed greeting cards to the leaders of 30 countries to mark the Lunar New Year but left out traditional allies China and Russia. One diplomatic source said this is a sign of fractured relations with Beijing and Moscow. The North's state press on Tuesday said Kim mailed greeting cards to the leaders of some 30 countries including Laos, Lebanon, Mongolia and Vietnam, but China and Russia were conspicuously absent from the list. Chinese President Hu Jintao, Premier Wen Jiabao and leader-in-waiting Xi Jinping all sent New Year's greeting cards to Kim through the Chinese Embassy in Pyongyang on Dec. 28, but the North Korean leader did not respond. Russian President Vladimir Putin sent a greeting card around the same time but received no letter in response either. It is a long-held tradition for the North Korean leader to exchange New Year's greeting cards with the heads of China, Russia and other allies. But Kim was apparently peeved by China and Russia's backing for the UN Security Council Resolution on Jan. 23 condemning North Korea's rocket launch. Meanwhile, the official Rodong Sinmun reported that Kim sent a card to UN Secretary General Ban Ki-moon, a rare gesture that came despite UN condemnation of the rocket launch.
• China Is No Paper Tiger
  by DAVID MACARAY Without much fanfare, and without many people even being aware of it, in 2009, China overtook the U.S. as the world’s leading papermaker. Moreover, they did it in much the same way that they became the world’s premiere manufacturing beast: with innovative engineering, a solid game plan, a vast reservoir of cheap labor, and massive government subsidies. In this instance, it’s their “innovative engineering” that boggles the mind. China has managed to develop a genetically altered hardwood eucalyptus tree (which begins its life in the lab as a tissue sample in a petri dish) that requires only four to six years to reach full height. That’s roughly one-tenth the time it takes “natural” trees in North America (which, all will agree, are abundant) to reach maturity. Eucalyptus is a favored furnish in papermaking because of its soft, low-coarse fiber. Each year Chinese laboratories clone 190 million of these “test-tube” eucalyptus sprigs, which are planted on hundreds of thousands of acres spread over several Chinese provinces. Wending Huang, Asia Pulp & Paper’s chief forester in China, calls these genetically altered trees, “Yao Mings” (referring to a famous and very tall Chinese basketball player). Wisconsin is the leading papermaking state in the U.S. Maine is second. China can now produce in just three weeks what Wisconsin produces in one year.
• The Taiwan Linchpin
  by Daniel Twining An old ally is key to the U.S. position in Asia Has america’s alliance with Taiwan, one of its oldest in Asia, become a strategic liability, a relic of a bygone era that no longer advances American interests? The obvious answer would seem to be no. First, there is the legacy of the relationship. American and free Chinese forces fought together in World War II. Taiwan was America’s “unsinkable aircraft carrier” during the Cold War. More recently, democratic Taiwan has become a model of political liberalization in a Chinese society. It boasts a high-tech economy that is intimately intertwined with those of America and its Asian partners; the United States is the largest foreign investor there. Taiwan is a key strongpoint in the United States’ offshore network of allies in maritime Asia. And not insignificantly, Taiwan is a reliable friend to America at a time when President Obama’s “pivot” to Asia is a reminder of the Chinese challenge to U.S. primacy — and the imperative of maintaining in Asia a balance of power that favors freedom. [China confrontation] [Taiwan]
• NIESR: China's economic model to provide stability
  Xinhua, February 5, 2013 A new economic report by Chinese and Western economists published by a leading British think-tank on Monday argues that China can look forward to a period of stability that runs counter to the gloomy predictions of some Western economists. The National Institute for Economic and Social Research (NIESR) in London published a special issue of its 'Review' devoted to the Chinese economy. Five articles looked at the drivers of China's growth, the integration of its financial markets with those of the rest of the world, inflationary pressures, the housing market, and cost competitiveness and productivity trends across China's regions. The five reports in the review have been written by a team of Chinese and Western economists. The report argues that while China undoubtedly faces challenges, it faces them from a position of strength relative to earlier periods in its history. The burgeoning middle-classes offer new opportunities to China's producers, sending them up the value chain to produce goods and services that an ever-more sophisticated consumer base demands. This can only be good news for China, the report argues, but warns that wage inflation must be kept in check, while the demands of workers for better working and living conditions are met. "It is phenomenally difficult for Western economists and observers to gain insights into what goes on in the Chinese economy because China has achieved a level of economic growth that is unprecedented in world history," Alex Bryson, principal research fellow at NIESR and editor of the review, told Xinhua. [China rising]
• China, Korea, & The F-35: Reshaping US Forces For A Pacific Strategy
  By Robbin Laird Published: February 1, 2013 China, Korea, & The F-35: Reshaping US Forces For A Pacific Strategy If the US fails to innovate in its re-shaping of its forces in the Pacific, it cannot effectively play the crucial role which is essential to a strategy focused on our allies. Without innovation, the US cannot protect its interests in the Pacific, ranging from the Arctic to Australia, and will lose the significant economic benefits which presence and protection of our interests provide. The protection of the US and its allies is valuable in and of itself. But it is inextricably intertwined with the economic viability of the United States in the Pacific and beyond. As the Commandant of the USMC, Gen. James Amos, has underscored: "From our allies' perspective, virtual presence is actual absence." In particular, as Gen. Charles Jacoby of NORTHCOM adds: "Our presence in the Arctic is crucial to shape our future in the region. Without security and defense, there is little probability of effective commercial development or ability to protect the environment." [US global strategy] [Imperialism] [China confrontation]
• On the naughty step: China continues to fret over its troublesome neighbour
  Feb 2nd 2013 | BEIJING |From the print edition .. LIKE an indulgent parent forgiving of the most petulant of childish tantrums, China usually cuts North Korea a lot of slack. So when China on January 22nd signed on to United Nations Security Council Resolution 2087, tightening sanctions on North Korea to punish it for a rocket launch in December, its ally was surprised and outraged. Without naming China, a North Korean statement accused it of “abandoning without hesitation even elementary principles”. By the same token, the outside world saw an encouraging sign: perhaps China will at last take serious steps to rein in its pugnacious neighbour’s efforts to build a nuclear arsenal. [China NK] [Tantrum] [Media]
• Investment from China rises amid concern
  China Daily/Reuters - A bicyclist rides past the entrance to Wanxiang Qianchao Co. Ltd, a subsidiary of Wanxiang Group, in Hangzhou, Zhejiang province, Jan. 31, 2013. China's largest auto parts maker Wanxiang Group won U.S. government approval to buy A123 Systems Inc, a maker of electric car batteries. By Howard Schneider, Published: January 31 | Updated: Friday, February 1, 1:00 AM High-tech batteries. Advanced wind turbines. Sensitive telecommunications gear. Last year saw a spike in concern over Chinese foreign investment in the United States, as election-year politics, economic anxiety and a record level of dealmaking all aligned. According to Thilo Hanemann, a Rhodium Group analyst who follows Chinese foreign direct investment, the United States should get used to the phenomenon. The pace and prominence of Chinese dealmaking are only going to rise, he said, as China loosens the rules governing its financial sector, seeks to use its ample foreign-currency earnings, and bids for new technologies and skills. Investment from China rises amid concern [ODI] [China competition] [Going out][ChinaFDI] [F&E]
• Hidden Agenda behind America’s War on Africa: Containing China by “Fighting Al-Qaeda”
  By Ben Schreiner Global Research, January 29, 2013 Harnessing Asia’s growth and dynamism is central to American economic and strategic interests. Hillary Clinton France’s military intervention into Mali may at first glance appear to have little to do with the U.S. “pivot” to Asia. But as a French mission supposedly meant to bolster a U.N. sanctioned and African-led intervention has gone from “a question of weeks” to “the total re-conquest of Mali,” what may have begun as a French affair has now become a Western intervention. And this in turn has drawn wider strategic interests into the conflict. Strategic interests, it is becoming clearer, shaped by the imperatives of the U.S. Asia pivot. Widening Intervention The geopolitical posturing over the crisis in Mali, coming as France’s intervention fans out across the region, is no more evident than in the public statements coming from both London and Washington. As British Prime Minister David Cameron declared, the crisis in Mali “will require a response that is about years, even decades, rather than months.” Backing up such bluster, Britain has reportedly joined France in dispatching special commando teams to Mali, in addition to surveillance drones. In Washington, the talk of a long war to be waged across the entire Sahel region of Africa has also begun. As one U.S. official speaking on the Western intervention into Mali warned Monday, “It is going to take a long time and time means that it could take several years.” [Africa] [China confrontation]
• China Tightens Customs Checks of N.Korean Cargo
  China has reportedly tightened customs inspections of cargo trucks traveling between North Korea and China since the renegade country launched a long-range rocket in December last year. "Since December, Chinese customs offices have inspected cargoes by the book at North Korea's major trading points, including Dandong," a North Korean source in Beijing said Wednesday. "The quantities being carried into the North have shrunk because checks are taking much longer." The North relies on China for more than 90 percent of daily necessities since trade with South Korea was suspended in the wake of its sinking of the South Korean Navy corvette Cheonan and shelling of Yeonpyeong Island in 2010.

• MOFA urges rational response to Diaoyutais protest
  MOFA urges rational response to Diaoyutais protestA CGA vessel (center) tries to protect a Taiwan protest boat (right) from a Japan Coast Guard cutter Jan. 24 in waters off the Diaoyutai Archipelago. (CNA) •Publication Date:01/25/2013 •Source: Taiwan Today •By Rachel Chan The Ministry of Foreign Affairs urged Japan Jan. 24 to adopt a rational and peaceful attitude toward a protest voyage staged by Taiwan people in the waters off the Diaoyutai Archipelago, expressing hopes that planned bilateral fishery talks will proceed despite the incident. “This was a spontaneous and legal sail initiated by citizens who had cleared all administration procedures in advance,” said Su Chii-cherng, deputy director-general of the MOFA Department of East Asian and Pacific Affairs. [Territorial disputes]
• UN "Resolution" Reminiscent of "Munich Pact": Social Scientist
  Pyongyang, January 29 (KCNA) -- The UN Security Council recently cooked up a "resolution on sanctions" against the Democratic People's Republic of Korea over its satellite launch, at the initiative of the United States. The "resolution" is reminiscent of the "Munich Pact," which was concluded in 1938, aiming to deprive a sovereign state of its territory, a social scientist of the DPRK said. Kim Ha Il, a researcher of the Academy of Social Sciences, told KCNA: The prevailing situation over the DPRK's satellite launch clearly proves that there is a limit to capabilities of parties concerned in their efforts to fairly handle the issue and avert aggravation of the situation. The DPRK has never expected that the U.S. and its followers' hostile policy towards the DPRK would be readjusted by the efforts of the parties concerned but regarded it as a truth that it should settle accounts with the U.S. by dint of strength only. It is as clear as noonday that if the U.S. is allowed to resort to the arbitrary and high-handed practices of violating the sovereignty of the DPRK, it will impose a more shameful indignity upon the DPRK and ask those parties concerned for more crucial concession. As part of its strategy for world supremacy, the U.S. is now focusing its military forces on the East Asian region embracing regional powers, creating an acute situation of military confrontation. Illogical is the assertion that the DPRK's satellite launch should meet denunciation and sanctions because it gives an excuse to the U.S. and its allies for making such military actions. It is as ridiculous as one advising others not to breed fowl for fear of being stolen, while one breeds a cow in one's house. A burglar should be clubbed to death.
  The results of the "Munich Pact" teach a lesson that one-step concession to hegemonic forces leads to one hundred-step concessions and to death in the long run.
  The DPRK can never allow its legitimate right to launch satellites for peaceful purposes to be violated by others like the disgraceful fate forced upon Sudet area by the "pact". Moreover, it is not like a weak nation that turned into a sacrifice to the "pact". Time will show what kinds of powerful and physical countermeasure the DPRK will take to defend the nation's dignity and sovereignty and how it will bring to naught the U.S. antagonistic conception and attempt.
  Those parties who sided with the U.S. in cooking up the "resolution" should ponder over the consequences to be entailed therefrom. [Appeasement]
• Passport restrictions in Tibet In China
  By Husna Haq Regional Tibetan Youth Congress Tibet China Members of the Regional Tibetan Youth Congress take part in a vigil on 10 January in protest at the continuing deterioration of their countrymen's human rights. (AFP/Getty Images) Freedom of travel, history has shown, is as much a means of diversion and entertainment as it is a tool of control. From Castro’s Cuba, where until recently Cubans needed an exit permit to travel outside the country, to Ahmadinejad’s Iran, where lawmakers are considering legislation limiting women’s right to travel, authoritarian regimes often employ stringent travel restrictions as a means of controlling a population. The latest example comes from China, where authorities are cracking down on dissenters by refusing to re-issue passports to Tibetans. [Media] [Double standards] [China bashing]
• Pakistan approves transfer of Gwadar port to China
  PTI | Jan 30, 2013, 11.02 PM IST ISLAMABAD: The Pakistan government on Wednesday approved the transfer of the management of the strategic Gwadar deep sea port from Singapore to China, a move that could raise concerns in India. A meeting of the cabinet chaired by Prime Minister Raja Pervez Ashraf gave its permission for transferring the concession agreement for Gwadar from the Port of Singapore Authority to China Overseas Port Holdings Limited, information minister Qamar Zaman Kaira said. The Chinese developer had played a key role in the construction of the facility in the Arabian Sea. "The cabinet today gave approval to transfer the operation of Gwadar port from Port of Singapore to China Overseas Port Holdings Limited," Kaira told a news conference. "Both the companies have settled their deal," he said, without giving a timetable for the transfer. He said the concession agreement and related government notification would be amended accordingly. China provided about 75 per cent of the initial funding of USD 250 million for building the strategic port in the southwestern province of Baluchistan. It is currently being operated by Singapore's PSA International but needs further development to become fully operational. Kaira said PSA International could not develop or operate Gwadar "as desired". The Chinese will make "more investment" to make the port operational, he said.
• Critical Military Issues: The Rebalancing Strategy and Naval Operations
  by Michael McDevitt January 29, 2013 Michael McDevitt assess US Force posture in East Asia. He concludes, “It is unlikely that China will halt development of what it considers necessary for its defenses. It is also clear that the United States does not intend to sit idly by and permit the introduction of military capabilities that could deny it access to East Asia in a time of conflict, and in peacetime undermine its credibility as capable ally…It will be a period of competing strategic concepts – assured access vs. denied access, complemented by the introduction of military capabilities by both sides necessary to accomplish those ends.” Rear Admiral Michael McDevitt, US Navy (Ret.) is a senior fellow with CNA Strategic Studies. [China confrontation] [Seapower]
• Rethinking our China strategy
  U.S. policy of engagement with Beijing has not been as effective in shaping its rise to superpower status as Washington had hoped. China China keeps its currency undervalued to promote its exports, limits foreign access to its markets and treats natural resources as exclusive national assets. (Jerome Favre / Bloomberg / January 25, 2013) By Gary Schmitt and Dan Blumenthal January 27, 2013 Senate committees will soon be asked to vote on President Obama's nominees to head the departments of State and Defense and the Central Intelligence Agency. Many, if not most, of the senators' questions will be focused on the nominees' views on the pressing security problems the United States faces in the greater Middle East and Afghanistan. But it would be a mistake for the committees to let the hearings pass without also examining the administration's own stated policy priority — the "pivot" or "rebalance" to the Asia-Pacific region. A productive discussion of the pivot, however, will require a frank acknowledgment that the primary factor driving the change is increased nervousness in Washington and Asian capitals about China's rise and, in turn, recognition that the U.S. policy of engagement with China has not been as effective in shaping that rise as successive administrations, Republican and Democratic, had hoped. [China confrontation] [US global strategy]
• Canada to Look ‘Carefully’ at Lenovo-RIM Deal: Flaherty
  By Andrew J. Barden - Jan 26, 2013 9:00 AM GMT+ Canada would closely examine any proposal for a tie-up between Chinese computer-maker Lenovo (992) Group Ltd. and BlackBerry-maker Research in Motion Ltd., Finance Minister Jim Flaherty said. “It’s something that we would look carefully at,” he said in an interview at the World Economic Forum’s annual meeting in Davos, Switzerland yesterday. He also said “absolutely” when asked whether some local technologies are off limits to potential overseas buyers. Flaherty Says Carney Successor Search `Going Well' 9:30 Jan. 25 (Bloomberg) -- Canadian Finance Minister Jim Flaherty talks about Bank of Canada Governor Mark Carney's move to the Bank of England, the outlook for the U.S. and Canadian economies and the weakening yen. He speaks with Bloomberg Television's Erik Schatzker on the sidelines of the World Economic Forum's annual meeting in Davos, Switzerland. (Source: Bloomberg) RIM (RIM), Canada’s largest-listed technology company, rose to the highest in more than a year in Toronto trading on Jan. 24 after Beijing-based Lenovo said it was considering a bid among other options for expanding its mobile-devices business. RIM has said it’s assessing strategic options after losing market share to Apple Inc. and Samsung Electronics. Canada has previously blocked foreign takeovers of local companies because of security issues. In 2008, it vetoed a C$1.33 billion ($1.32 billion) bid from U.S.-based Alliant Techsystems Inc. (ATK) for MacDonald Dettwiler & Associates Ltd.’s satellite business. Cnooc Ltd., received approval from the Canadian government for a $15.1 billion acquisition of Nexen Inc. (NXY), the biggest takeover by a Chinese company, in December. [IPR] [China confrontation]
• China to Send Senior Official to Park's Inauguration
  China's leader-in-waiting Xi Jinping is to dispatch a senior envoy to president-elect Park Geun-hye's inauguration on Feb. 25, her spokesman Cho Yoon-sun said Monday. Xi told a delegation sent to Beijing by Park last week that the two countries should form a relationship that "corresponds to a new era" in the leadership of the two countries. For President Lee Myung-bak's inauguration in 2008, China sent State Councilor Tang Jiaxuan. Roh Moo-hyn's inauguration in 2003 was attended by then Chinese vice premier Chen Chichuan.
• What’s next for China?
  As China gradually shifts to a more consumer-driven economy, companies must adapt their offerings and ways of doing business. JANUARY 2013 Exhibit: Consumption is expected to overtake investment as the largest contributor to China’s GDP growth. .. China’s economy is starting its historic shift to a more consumption- and service-driven model that should help sustain the country’s growth, albeit at a slower rate, over the next decade and beyond. As November’s 18th congress of the Chinese Communist Party showed, new government policies are helping to move the economy in this direction, even though investment—the historical motor of China’s growth—will still command the lion’s share of the economy in the near term. These new policies will favor household income growth, improve the social safety net, and support the expansion of the service sector and private enterprises, especially small and midsize businesses. Two markers of a more economically developed society will be the higher productivity of its workers and higher productivity and greater efficiency on the part of government. These trends will create more and better-paid jobs and thus raise the share of the national income in the hands of consumers—the key determinant of China’s future economic profile (exhibit). [Domestic demand]
• In China, Beware: A Camera May Be Watching You
  by Frank Langfitt January 29, 2013 3:30 AM The use of security cameras such as these, looking out over Tiananmen Square in Beijing, is on the rise in China. Critics say the government is using them to discourage dissidents. China is becoming a surveillance state. In recent years, the government has installed more than 20 million cameras across a country where a decade ago there weren't many. Today, in Chinese cities, cameras are everywhere: on highways, in public parks, on balconies, in elevators, in taxis, even in the stands at sporting events. Officials say the cameras help combat crime and maintain "social stability" — a euphemism for shutting up critics. In fact, the government routinely uses cameras to monitor and intimidate dissidents. Human rights activists worry that more surveillance will erode the freedom of ordinary people and undermine what little ability they have to question their rulers. [Surveillance] [Media]
• Why two Asias may be better than none
  January 21st, 2013 Author: Amitav Acharya, American University As is well known, the Obama administration is now firmly focused on engaging Asia. The United States is engaging with ASEAN and related Asian regional institutions, encouraging high-quality trade liberalisation — mainly within the framework of the Trans-Pacific Partnership (TPP) — and returning its military attention to the region. China has viewed these initiatives with much suspicion and regards them as detrimental to its interests. Chinese suspicion means that for the rest of the region, including some of America’s own allies and friends, the US ‘rebalancing’ strategy has created an Asian security dilemma: how to court Washington without hurting Beijing. This dilemma is aggravated by developments in Asia as China builds steadily greater economic muscle while the United States remains the strongest military power. Some see grave danger in this trend. A recent essay by Evan Feigenbaum and Robert Manning presents a scenario of ‘two Asias’: an ‘Economic Asia’ that is dynamic and increasingly integrated, and a ‘Security Asia’ that is riven by conflict and shows little political will among the major powers to resolve deep-seated suspicions and tensions. Moreover, the authors argue that ‘Economic Asia and Security Asia have become increasingly irreconcilable’. I disagree, especially if the implication is that Economic Asia will gravitate toward China. The idea of an Economic Asia and a Security Asia in a seemingly irreconcilable relationship makes for a fashionable sound bite, but it misreads the nature and implications of the emerging economic and political order in Asia. [Pivot] [Chna confrontation] [Allegiance]
• The problem with two Asias
  January 25th, 2013 Authors: Evan A. Feigenbaum, Paulson Institute, and Robert A. Manning, Atlantic Council Amitav Acharya’s essay, ‘Why Two Asias May be Better Than None’, uses our recent article in Foreign Policy, ‘A Tale of Two Asias’, as a conceptual framework for thinking about the future of this dynamic and important region. But his piece misunderstands or fails to address many of our key arguments about the contradictions between what we called ‘Economic Asia’ and ‘Security Asia’. On some points, we agree with Acharya. For example, he notes that Japan ‘started the process’ of economic integration in Asia, or what we term ‘Economic Asia,’ and ‘still plays a vital role in it’. We made precisely this point when we argued that ‘Tokyo has long been an exemplar of Economic Asia and a motive force behind the quest for greater regional economic integration’. But this only reinforces our argument about the emergence of two increasingly irreconcilable Asias. [China confrontation] [Allegiance]
• A Tale of Two Asias
  In the battle for Asia's soul, which side will win -- security or economics? BY EVAN A. FEIGENBAUM, ROBERT A. MANNING | OCTOBER 31, 2012 Whatever happened to the "Asian Century?" In recent months, two Asias, wholly incompatible, have emerged in stark relief. There is "Economic Asia," the Dr. Jekyll -- a dynamic, integrated Asia with 53 percent of its trade now being conducted within the region itself, and a $19 trillion regional economy that has become an engine of global growth. And then there is "Security Asia," the veritable Mr. Hyde -- a dysfunctional region of mistrustful powers, prone to nationalism and irredentism, escalating their territorial disputes over tiny rocks and shoals, and arming for conflict. In today's Asia, economics and security no longer run in parallel lines. In fact, they are almost completely in collision. [China confrontation] [Allegiance]
• Beijing 'Would Cut Aid to N.Korea Over Any Nuclear Test'
  Beijing would cut aid for North Korea if Pyongyang conducts a nuclear test or test-fires a long-range missile, China's official Global Times reported Friday. It is rare for China's state media to mention cutbacks on aid for Beijing's traditional ally. China has given North Korea 100,000 to 200,000 tons of food aid and 500,000 tons of oil every year to keep the impoverished state afloat. The newspaper, an English-language sister publication of the People's Daily, expressed Beijing's growing exasperation with its renegade ally. "Just let North Korea be 'angry,'" it said in an editorial, referring to irate statements from Pyongyang after the latest UN sanctions. "If North Korea engages in further nuclear tests, China will not hesitate to reduce its assistance to North Korea." [China NK] [Media]
• Not all Peninsula issues China’s problem
  Global Times | 2013-1-25 0:38:01 By Global Times In response to UN Security Council Resolution 2087 which was approved on Wednesday, North Korea vowed that it will carry out a "high-level" nuclear test. This may not be mere angry words, because South Korea says preparation for North Korea's new nuclear test is already in progress. Wednesday's UN resolution condemned North Korea's rocket launch in December and expanded existing sanctions. After putting a lot of effort into amendments for the draft resolution, China also voted for it. It seems that North Korea does not appreciate China's efforts. It criticized China without explicitly naming it in its statement yesterday: "Those big countries, which are obliged to take the lead in building a fair world order, are abandoning without hesitation even elementary principles, under the influence of the US' arbitrary and high-handed practices, and failing to come to their senses." China has a dilemma: We are further away from the goal of denuclearization of the Korean Peninsula and there's no possible way for us to search for a diplomatic balance between North Korea and South Korea, Japan and the US. [China NK] [Dilemma]
• A US - China entente over Afghanistan
  Melkulangara BHADRAKUMAR | 28.01.2013 | 00:00 The involvement of China in the North Atlantic Treaty Organization [NATO]’s decade-long war on terror in Afghanistan has been virtually nil. This was so despite the western alliance’s repeated urgings on Beijing to be an active participant. Beijing did not even respond to the US’s demarche to open the Wakhan Corridor as a transit route for supplying the NATO troops in Afghanistan. The big question is whether all that is going to change now that the western troop withdrawal from Afghanistan is a foregone conclusion. The signs point towards a more ‘hands-on’ approach on the part of China over the enterprise of stabilizing Afghanistan in the post-2014 period. In retrospect, the visit by the Zhou Yongkang, China’s security chief and politburo member of the communist party, to Kabul in September last year signified a shift in the Chinese stance from one of extreme wariness and reserve to one of willingness to become engaged. Zhou’s visit was, of course, the first by a senior Chinese leader in 46 years and, indeed, Beijing pays much attention to formalism in its political culture. [China global strategy] [Afghanistan]
• Security concerns grow over sale of US battery maker to Chinese company
  By Barnini Chakraborty Published January 23, 2013 FoxNews.com WASHINGTON – More than a decade of advanced American technology could be handed over to one of the country’s top economic rivals unless the government intervenes to stop the sale, lawmakers say. The concerns surround the sale of A123 Systems -- a firm backed for years by U.S. taxpayers -- to a company run by a Chinese multi-millionaire with deep ties to the Chinese Communist Party. The move would essentially transfer sensitive battery technology with “key military applications," according to one group that is opposing the sale. Renewed concerns come one day after President Obama in his inaugural speech spoke to the need to keep advanced technology here in the U.S. “We cannot cede to other nations the technology that will power new jobs and new industries -- we must claim its promise,” he said. If Obama wants to keep this word, his administration will have to block the sale to Wanxiang, Rep. Marsha Blackburn, R-Tenn., said. [Technology]
• N.Korea Irked by Chinese Backing for Sanctions
  In a statement threatening a fresh nuclear test on Thursday, North Korea fired a rare broadside at its traditional allies China and Russia for siding with the U.S. in supporting UN sanctions. The North said "big countries" that should be leading the way in establishing "fairness and order" in the world had been pressured by the U.S. and "relinquished basic principles that must be protected." Although the North did not name the "big countries," it was likely referring to China and Russia, which are permanent members of the UN Security Council.
• Xi's Call for Denuclearization 'to Put Pressure on N.Korea'
  Chinese president-in waiting Xi Jinping's support on Wednesday for denuclearization of the Korean Peninsula will put "considerable pressure" on North Korea, according to a diplomatic source in Beijing. Chinese Foreign Ministry spokesmen frequently call for denuclearization and non-proliferation of weapons of mass destruction on the Korean Peninsula, but the pressure will be much greater now that China's leader has directly expressed his commitment.
• Xi Backs Denuclearization of Korean Peninsula
  China's president-in-waiting Xi Jinping on Wednesday said Beijing remains committed to denuclearization of the Korean Peninsula. Xi told envoys of president-elect Park Geun-hye that denuclearization and non-proliferation of weapons of mass destructions are "essential conditions" to peace and stability on the peninsula, according to delegation head Kim Moo-sung.
• What made China vote for UN sanctions on North Korea?
  Posted on : Jan.24,2013 15:10 KST Beijing’s decision shows a desire to improve relations with South Korea and take a new role on the international stage By Park Min-hee, Beijing correspondent After 40 days of diplomatic wrangling in the United Nations Security Council (UNSC) following North Korea’s December long-range rocket launch, a resolution that expanded existing sanctions against the North was finally passed. What observers are curious to know is why China, the country that is North Korea‘s biggest supporter and ally, cast a vote in favor of the resolution. China’s position was the key variable in the resolution’s passing. After North Korea launched a long-range rocket on Dec. 12, 2012, the US and China entered a tug of war over the format and specifics of the sanctions. [Satellite] [UNUS] [China NK]
• Obama is still searching for right tone in executing ‘Asia pivot’
  By Hannah Allam | McClatchy Newspapers WASHINGTON — China may be the centerpiece of the Obama administration’s second-term foreign policy agenda, with U.S. strategists trying to avoid entanglement in Syria or Mali in order to stay focused on a vision of reasserting the American presence in Asia. But getting sucked back into Middle East and North African conflicts isn’t the only risk to the administration’s so-called “Asia pivot”: The United States still hasn’t found the right tone for its dealings with China, say analysts who specialize in Asia-Pacific issues. [China confrontation] [F&E] [Obama]
• MOFA refuses to concede on Diaoyutais
  MOFA refuses to concede on Diaoyutais MOFA Minister David Y.L. Lin reiterates ROC sovereignty over the Diaoyutai Archipelago Jan. 22 in Taipei City. (CNA) •Publication Date:01/23/2013 •Source: Taiwan Today ROC Minister of Foreign Affairs David Y.L. Lin said Jan. 22 that the Diaoyutai Archipelago is ROC territory and also an appendage of Taiwan. “On this main point we cannot make concessions,” he said, adding that the ROC’s position on the Diaoyutais is very clear and sovereignty issues should be put aside in favor of peaceful joint development. In response to U.S. Secretary of State Hillary Clinton’s comment that the U.S. acknowledged Japan’s administrative authority over the islands, without taking a position on their ultimate sovereignty, Lin said this shows the U.S is aware there are sovereignty issues at stake that have yet to be resolved. [Diaoyu] [Sidelined]
• MOEA mulls easing on mainland China investment
  Taiwan’s panel-makers can expect more mainland Chinese investment under the latest regulatory easing proposed by the MOEA. (Photo courtesy of AU Optronics Corp.) •Publication Date:01/21/2013 •Source: Economic Daily News The ROC Ministry of Economic Affairs has proposed further regulatory easing on mainland China-sourced investment that will afford investors from the other side of the strait more flexibility in managing their business activities in Taiwan. MOEA sources claim the ministry intends to lift most existing regulations on mainland Chinese investment in Taiwan’s manufacturing sector and infrastructure projects. But mainland Chinese investment in seven key local sectors will still be capped at less than 50 percent. [Straits] [FDI]
• Taiwan investment in mainland China decreases
  MOEA statistics show Taiwan investment in mainland China fell to its lowest level in three years last year. (CNA) •Publication Date:01/22/2013 •Source: Commercial Times Taiwan investment in mainland China stood at US$10.9 billion for 2012, down 16.61 percent from 2011, a three-year low, the Investment Commission said Jan. 21. A commission official said investment in mainland China by Taiwan manufacturers had already reached a critical threshold, and that coupled with changes in the mainland China’s business environment, it was clear that Taiwan businesses were reorienting toward Association of Southeast Asian Nations members. Further breakdown of the investment figures showed the main investment driver was the electronics component sector, which invested US$3.47 billion in 2012, down 43.81 percent year on year. The second biggest sector was financial services, where investment stood at US$1.24 billion, or up 38.11 percent year on year. [Straits] [FDI]
• Taiwan investment in mainland China decreases
  MOEA statistics show Taiwan investment in mainland China fell to its lowest level in three years last year. (CNA) •Publication Date:01/22/2013 •Source: Commercial Times Taiwan investment in mainland China stood at US$10.9 billion for 2012, down 16.61 percent from 2011, a three-year low, the Investment Commission said Jan. 21. A commission official said investment in mainland China by Taiwan manufacturers had already reached a critical threshold, and that coupled with changes in the mainland China’s business environment, it was clear that Taiwan businesses were reorienting toward Association of Southeast Asian Nations members. Further breakdown of the investment figures showed the main investment driver was the electronics component sector, which invested US$3.47 billion in 2012, down 43.81 percent year on year. The second biggest sector was financial services, where investment stood at US$1.24 billion, or up 38.11 percent year on year. [Straits] [FDI]
• Scientists awarded top prize, Xi urges innovation-driven growth
  Xinhua | 2013-1-20 11:51:15 Explosion mechanics expert Zheng Zhemin and radar engineer Wang Xiaomo won China's top science award on Friday at a high-profile annual ceremony held to honor distinguished scientists and research achievements. They were honored for their remarkable contributions to scientific and technological innovation, according to a government statement. They were each awarded 5 million yuan (803,792 US dollars). Their awards were presented by President Hu Jintao at the ceremony. Chinese leaders Xi Jinping, Wen Jiabao, Li Keqiang and Liu Yunshan were also present. The government has given the annual award to distinguished scientists for 13 consecutive years, and 22 top scientists, including Zheng and Wang, have won the award so far. The award is aimed at boosting innovation-powered development. China aims to build itself into an innovative country by 2020, when scientific progress will contribute to nearly 60 percent of the nation's economic growth, according to a national science and technology development plan. [Innovation]
• China opposes US comments about Diaoyu Islands: spokesman
  Xinhua | 2013-1-20 15:14:13 China is firmly opposed to comments made by the United States about the Diaoyu Islands, Foreign Ministry spokesman Qin Gang said Sunday. Qin was answering media questions relating to comments US Secretary of State Hillary Clinton made on Friday. Qin said, "We urge the US side to adopt a responsible attitude in regard to the issue of the Diaoyu Islands. It should be careful with its words, and act and maintain regional peace, stability and the general situation of China-US relations with practical actions and build credit with the Chinese people." At a joint news conference with Japanese Foreign Minister Fumio Kishida in Washington, Clinton said the United States does not take a position on the ultimate sovereignty of the Diaoyu Islands. However, she admitted that the Diaoyu Islands was under the administrative authority of Japan, saying the United States opposes any unilateral actions to undermine Japanese authority over the islands. "The comments by the US side are ignorant of facts and indiscriminate of rights and wrongs," Qin said. The United States cannot deny its historical responsibility on the issue of the Diaoyu Islands, Qin said, referring to the fact that despite opposition from China, the United States put the islands under the control of Japan after the World War II. [Diaoyu] [Agency]
• When Soft Power Fails
  Posted on : Jan.16,2013 10:35 KST Modified on : Jan.16,2013 10:40 KST By John Feffer, co-director of Foreign Policy In Focus The oldest Chinatown in the world is not in New York or San Francisco or even Yokohama. It is in Manila, a fact that comes up often when Beijing talks about its longstanding connection to the islands that lie about 600 miles to the southeast. Similarly, China boasts of its three Confucius Institutes in the Philippines where Filipinos can learn Mandarin and appreciate the many facets of Chinese culture. Since 2011, Chinoy TV has also spread the Confucius Institute message to all the Filipinos who can‘t physically attend the cultural events. Trade between the two countries, meanwhile, is expanding rapidly. In 1996, Mainland China didn’t even make it into the top ten of trade partners of the Philippines. Today, with trade volume at $30 billion, China has become number three. After a set of talks in Beijing in 2011, the two sides agreed to double this figure by 2016, which would vault China into the top spot. China‘s exercise of soft power in the Philippines is by no means unique in the region. [Softpower]
• China Arrests Traffickers of N.Korean Women
  Chinese police have busted a human trafficking ring that lured North Korean women into defecting and sold them into indentured labor or prostitution, the Chinese press reported Wednesday. The human trafficking ring apparently included both Chinese and North Korean nationals, though the Chinese media merely referred to them as "foreigners." Diplomats in Beijing say it is unprecedented for the Chinese media to report the trafficking of North Korean women in such detail. "At a time when the issue of North Korean defectors has captured global attention, China probably wanted to warn North Koreans that they are more likely to come into contact with human traffickers than with human rights groups if they defect," said an informed source in China. Since the death of former North Korean leader Kim Jong-il in December 2011, China has stepped up a crackdown on North Korean defectors and brokers along the North Korean-Chinese border. Local media reports said police in Yanji, Jilin Province, which is home to a large population of ethnic Koreans, arrested four foreigners and one Chinese. Police found 12 North Korean women who had been sold to Heilongjiang Province and other parts of China and sent them back to the North. [Refugee encouragement]
• No Mali evacuation plan yet, says China embassy
  Global Times | 2013-1-16 1:13:01 By Yang Jingjie A French armored vehicle is unloaded from a British Royal Air Force C-17 transport plane, which landed at Bamako airport, Mali, in support of operation NEWCOMBE on Tuesday. France secured on Tuesday UN backing for its campaign launched four days earlier to confront Islamist fighters who have controlled northern Mali since April. Photo: AFP A French armored vehicle is unloaded from a British Royal Air Force C-17 transport plane, which landed at Bamako airport, Mali, in support of operation NEWCOMBE on Tuesday. France secured on Tuesday UN backing for its campaign launched four days earlier to confront Islamist fighters who have controlled northern Mali since April. Photo: AFP The Chinese embassy in Mali Tuesday told the Global Times that China has helped dozens of its nationals travel to safer places but currently has no plan to evacuate all Chinese from the war-torn country, as France stepped up the fight against the rebels in its former colony. Paris has poured hundreds of soldiers into Mali and carried out air raids since Friday in the northern half of the country, which was seized last year by an Islamist alliance, Reuters reported. AFP Tuesday quoted defense sources as saying that France is planning to deploy a total of 2,500 troops in Mali. African countries are also sending in troops, with Nigeria promising its first battalion bound for Mali on Tuesday. Guo Yeling, head of the political section of the embassy, told the Global Times via the phone that the current situation does not pose a severe threat to the security of Chinese nationals and enterprises, so an evacuation is not necessary at the moment. According to the embassy, there are around 2,000 Chinese workers and overseas Chinese in Mali, and around 20 Chinese enterprises operating in the country. The French army carried out overnight air strikes on the town of Diabali, which was seized by Islamists on Monday in an advance into the government-held south. Guo said 26 Chinese workers from two Chinese enterprises in Niono, about 50 kilometers south of Diabali, were transferred to a safety zone in Segou late on Monday with the help of the embassy. The plants of another two Chinese enterprises, which are located around 100 kilometers south of the rebel-seized town, are still conducting normal operations with nearly 300 workers, said Guo, adding that the embassy will maintain close contact with them. French forces have, since Friday, been supporting an offensive by Malian government troops against al-Qaeda-affiliated militant Islamist rebels which have controlled the north of the vast country since April 2012.
  China's foreign ministry spokesman Hong Lei said Monday that China denounces the Malian rebels' latest offensive and urged the early implementation of UN Security Council Resolution 2085, which emphasizes the importance of political dialogue and the pursuit of negotiations, and authorized the deployment of an African-led force to respond to the growing security threats on the ground. [China global strategy]
• MOFA reaffirms sovereignty over Zhongye Island
  MOFA reaffirms sovereignty over Zhongye Island The Nansha Islands in the South China Sea are sovereign ROC territory. (CNA) •Publication Date:01/16/2013 •Source: Taiwan Today The recently announced Philippine plan to refurbish an airstrip on Zhongye (Pagasa) Island and develop some of the Nansha (Spratly) Islands as tourist destinations is an illegal move violating ROC sovereignty, the ROC Ministry of Foreign Affairs said Jan. 15. “Zhongye Island is part of the Nansha chain, and whether from the viewpoint of history, geography or international law, the Nansha, Xisha (Paracel), Zhongsha (Macclesfield Bank) and Dongsha (Pratas) archipelagos and their adjacent waters in the South China Sea are all integral parts of ROC territory,” the MOFA said. [Territorial disputes] [South China Sea]
• Lessons of UK smog disaster could avert calamity in China
  Global Times | 2013-1-14 19:58:01 By John Ross Scenes of heavy air pollution and smog across large parts of China, including Beijing, are not simply deeply unpleasant. They mean people, particularly the old, very young children and those with respiratory problems, will die. The scenes are particularly disturbing for someone of my age and nationality as they bring home memories of the UK national catastrophe in the Great London Smog of 1952 which killed 12,000 people. Not accidentally, in 1952 the UK's stage of economic development, its GDP per capita, was approximately the same as China's today. Looking at the lessons of London's pollution catastrophe, and how subsequently the situation in both the city and the UK was improved, may contain some lessons of use for China. The Great London Smog of December 1952 lasted for five days. Visibility was reduced at best to a few meters, and in some cases to just one meter. I had then just started school and the only way to find the route was to walk alongside the fences and houses on the side of the road. It was impossible to see traffic. Listening for vehicles had to be used to cross roads safely. The smog carried a foul smell of sulphur and soot. The immediate cause of the smog pollution was coal, from power stations and private houses, combined with vehicle emissions. The immediate short-term death toll from London's 1952 smog was counted at 4,000 to 6,000 - mainly very young children and those with respiratory problems. This was itself enough to count as a national catastrophe - in proportion to China's population it is equivalent to 80,000 dying. But the serious effects of the smog aggravated existing medical conditions and not all deaths were recorded immediately. The final death toll is now estimated at 12,000 - almost a quarter of a million in proportion to China's population. [Pollution]
• Chan’s disparaging words touch sore spot
  Global Times | 2013-1-13 23:48:01 By Yu Jincui Hong Kong martial arts actor Jackie Chan's criticism of supposed US corruption has put him at the center of a controversy recently. During a talk show last month, Chan responded to netizens' opposition on patriotic remarks he made in the past. Chan refuted this by claiming that China is continuously making progress in tackling corruption, but the US is the most corrupt country in the world. He called his Chinese countrymen to support their home country especially when China is targeted by foreign countries. As a public figure, Chan is not shy about expressing his political views. He was once quoted as commenting that democracy in Taiwan is the biggest joke in the world and in another occasion stated that Chinese in Taiwan and Hong Kong had too much freedom. But this time, he caused a much bigger uproar by attacking the US, a major market for his action movies. Chan was dismissively labeled as representing "anti-American" sentiment of China by American journalists and bloggers. He was questioned about how he won his fame and fortune in what he claims to be the most corrupt country, and why the US ranks relatively low on international corruption ratings, especially compared to China. [Anti-Americanism] [Corruption]
• Uncharted Strait
  By: Richard C. Bush III EXECUTIVE SUMMARY A few influential Americans have begun to suggest that the United States should reduce its long-standing security commitment to Taiwan. Some say that Taiwan itself has chosen to improve relations with China, so the island has less need for advanced U.S. weaponry and a defense pledge. Others argue that Washington, to avoid unnecessary tensions with a rising China, should accommodate Beijing on the most neuralgic issue—Taiwan. The first group overstates the limits of the ongoing Taiwan-China détente. True, progress has been made in normalizing, liberalizing, and institutionalizing the economic relationship. But, to the disappointment of many Chinese, none has occurred on political and security issues, because the Taiwan public is not ready to go there and serious conceptual differences exist on how to get there anyway. So the prospects for cross-Strait relations in the near-term are for modest, incremental progress only, or a stall. [US global strategy] [Taiwan]
• What Happens When China Goes “Gray”?
  January 14, 2013 By Mark W. Frazier Developed economies are beginning to struggle with aging populations and more retirees. China may soon join them. As China's major trading partners try to control rising public pension and health care costs, they may not realize they also have an important stake in China's ongoing struggle to fashion a safety net for its own rapidly aging population. Many observers assume China has no pensions or healthcare insurance for the 185 million people over the age of 60 (13.7% of population), the highest official retirement age for most workers. They may well believe this explains why Chinese families save so much–more than 30% of household income–and therefore spend less on consumer goods, including imports from trading partners. But this line of reasoning is faulty because China already has large and rapidly growing public pension and health insurance programs in the cities, and is in the process of extending them to rural areas. It's time that China's trading partners, especially the United States, understand what this means for China's economic future and, by extension, their own. [Ageing society]
• China's space activities raising U.S. satellite security concerns
  By Andrea Shalal-Esa WASHINGTON | Mon Jan 14, 2013 2:34am EST (Reuters) - The United States is concerned about China's expanding ability to disrupt the most sensitive U.S. military and intelligence satellites, as Beijing pursues its expanded ambitions in space, according to multiple sources in the U.S. government and outside space experts. [China confrontation] [Aerospace]
• China–North Korea relations under Xi Jinping
  January 11th, 2013 Author: Jeffrey Choi, ANU Is North Korea a Chinese strategic asset or just a burden to China’s foreign policy? This has been a serious question among China’s leadership particularly after North Korea conducted its second nuclear tests in 2009 in spite of clear warnings from China not to proceed. When North Korea found its own way out of the Six-Party Talks framework, China joined other member states in strongly denouncing North Korea’s provocative unilateral actions. China also voted for UN Security Council Resolution 1874 in 2009 to sanction Pyongyang. Yet, China’s top leadership since the North’s second nuclear test has seemingly reaffirmed the strategic value of Pyongyang for China’s foreign policy and national security. In 2009, the year of North Korea’s second nuclear test, then Chinese Premier Wen Jiabao visited Pyongyang and promised to build a new bridge between the two countries over the Apnok (or Yalu) River as a symbol of economic cooperation. The following year, despite the North’s sinking of the South Korean corvette, the Cheonan, and North Korean artillery fire on Yeonpyung Island in the West Sea of South Korea, China has remained reluctant to publicly denounce Pyongyang. Last year, North Korea’s failed launch of a long-range rocket in April and its success in December resulted in China expressing ‘deep concerns’. However, there have been no signs of a decision to actively stop North Korea from continuing its missile or rocket program. [China NK]
• Multipolar not bipolar world
  Updated: 2013-01-11 08:09 By Xue Fukang (China Daily) China should adhere to anti-hegemony stance, but ties with the US will be more interdependent than confrontational Now China is the world's second-largest economy, some have argued a bipolar world is more likely than a multipolar one. However, China should not seek to establish a bipolar world. Choosing not to seek hegemony demonstrates China's foresight and clear thinking. After its reform and opening-up, as its national power has improved, China has repeatedly clarified that its peaceful path of development and not seeking hegemony are strategic choices. This is a judgment based on historical experience of a multipolar world, recognition of the principle that win-win cooperation is the inevitable global trend and the correct road to defend China's national interests. [Hegemony]
• China ready for worst-case Diaoyu scenario
  Global Times | 2013-1-11 0:58:01 By Global Times According to Japanese media, Japan's Self-Defense Forces have scrambled fighter jets against China's military aircraft, including fighter jets, which flew to the Diaoyu Islands. It was the first time that military aircraft from both China and Japan confronted each other over the Diaoyu Islands. All of East Asia is now facing intense uncertainty. Thanks to Japan's arrogance toward China, the Diaoyu Islands dispute has come to this point. Japanese politicians, including Tokyo governor Shintaro Ishihara and former prime minister Yoshihiko Noda, are to blame. China and Japan may stand at a turning point that leads to confrontation. The resentment toward each other has come to the highest level since World War II. The Sino-Japanese relationship is looking dim. Japan has mistakenly estimated China's strategic stance toward constant external provocations. A year ago, Japanese politicians wouldn't have thought that China would send fighter jets. Some Japanese believed China had to be restrained at any costs to ensure a peaceful period of strategic opportunities. But the fighter jets yesterday proved them wrong. How far the Diaoyu crisis goes depends on whether Japan is just putting on a show by intercepting China's military aircraft or it really wants to confront China. If it chooses the latter, then it is choosing a military clash. Chinese society is tired of simple verbal protests toward Japan. The Chinese people hope the country will carry out actions against Japan's provocations. China's sending fighter jets to the islands reflects Chinese public opinion. A military clash is more likely. We shouldn't have the illusion that Japan will be deterred by our firm stance. We need to prepare for the worst. China and Japan are likely to become long-term rivals or even enemies. Japan has become the vanguard of the US' strategy which aims to contain China. [China confrontation] [Diaoyu]
• Chinese envoy backs Park's NK approach
  By Kim Young-jin Chinese Vice Foreign Minister Zhang Zhijun said Friday he supported President-elect Park Geun-hye’s “trust building” approach to Pyongyang, calling it a “very good idea.” "The chronic disease with regard to issues of the Korean Peninsula is a lack of trust," Zhang said during a forum for businesspeople. “When you are trying to cure a wound, you have to address the underlying cause.” China’s special envoy met with Park, Thursday.
• The anti-Americanism of Jackie Chan
  Posted by Max Fisher on January 10, 2013 at 12:27 pm Jackie Chan, shown here at a comedy show in San Diego, disparaged the United States on a Chinese TV show. (Kevin Winter/Getty Images) Americans know Jackie Chan best for his cheery, acrobatic performances in action movies such as “Rumble in the Bronx” and “Rush Hour,” made successful by his amazing martial artistry and self-effacing comedy. Chinese know Chan, a Hong Kong native, for largely the same reasons. But they also know him for something most Americans might find surprising: He is passionately political, a staunch defender of the Chinese Communist Party and harsh critic of anyone he sees as opposing Beijing. Today, that includes the United States. [Anti-Americanism]
• Commentary: Demonization of China Puts U.S. Interests in Jeopardy
  December 20, 2012 | in 2012: Vol. 11, No. 2, Commentary Penelope Prime and John Garver he rhetoric about China’s faults vis-à-vis the challenges facing the U.S. continues to escalate. During the presidential campaign, Barack Obama chose to lead the attack, blaming China for some portion of our woeful economic situation. Mitt Romney retorted that Obama’s tough handling of China is too little, too late, and that he would do the job right. Now that Obama has won the election, we would be smart to redirect our discourse. The U.S. and China have benefited tremendously from their economic interdependence, and from cooperation in the Persian Gulf. China is a country with substantial international clout. It is not a power hostile to the United States. It is often willing to work with America, even when it disagrees with U.S. policy. In administration after administration, American leaders have recognized this fundamental reality and acted accordingly to maintain cooperative relations with China. [F&E]
• China 'Healthier Than the U.S.'
  Amid feverish speculation among pundits and laymen about when China will overtake the U.S. and in what sense, the Chinese Academy of Sciences has now settled on 2049. That conveniently marks the centenary of the People's Republic. According to the China Daily, the academy said in a report that the 21st century will be dominated by China in the same way that the 20th was the American Century. It claimed the projection is based on research on the "national health" of the two countries. The academy is one of the country's leading think tanks. It ranked 100 countries around the world on a "national health index." The report defines national health as the overall operational condition of a country, using resource sufficiency and wealth distribution as the major criteria. It analyzed "factors such as natural and economic immunity, national decision-making and enforcement capacity and national responsibilities."
  But the report has attracted derision in China. Not only is the concept of national health vague, the methodology involved in the research is far from transparent, critics say. Chinese websites were flooded with comments wondering how China, which is plagued by many social problems, could be considered healthier than the U.S. [Decline] [China rising] [Chia bashing]
• China to surpass US by 2049: report
  Updated: 2013-01-08 22:14 (Xinhua) 1 BEIJING - Experts at a Chinese think tank said China is likely to surpass the United States in an all-around way by 2049, the year the People's Republic of China will celebrate its centennial anniversary. According to a report released Tuesday by the Chinese Academy of Sciences, the rejuvenation of the Chinese nation will be realized and the country will surpass the US as long as it nurtures sound "national health". The report defines "national health" as the overall operational condition of a country, using resource sufficiency and wealth distribution as the major criteria. National health is the greatest form of capital China can use to surpass the US, the report said. The report said China's national health has been better than that of the US since 2007, adding that its superior health will further expand in 2019, when China is expected to become the world's biggest economy. [Decline] [China rising]
• China unfairly targeted over Laos railway
  Global Times | 2013-1-9 23:23:01 By Calvin Zhang Illustration: Liu Rui I read the New York Times, not just because I live in one of its five boroughs and pay the city tax, but also because I was told that it represents the finest in journalism. That's why I was astounded by the article "Laos Could Bear Cost of Chinese Railroad" recently published in this newspaper. The story begins by introducing a Chinese hotel owner in Oudomxay Province in Laos, who expects his rooms to be filled by legions of Chinese railroad workers from a nearby construction site, and together with a photo of a Chinese-owned supermarket complex, implies that the Chinese are taking away all the economic benefits of the project. From there, the authors go on to cite critics who see the financing deal by a Chinese creditor as harsh on the Laos side, and portray the construction as environmentally disastrous. The rest of the article tries to show that the Laos government acts like Beijing's vassal. I was appalled by the sloppiness of the piece. [China bashing]
• China’s Global Investment Rises: The U.S. Should Focus on Competition
  By Derek Scissors, Ph.D. January 9, 2013 Abstract In 2012, Chinese outbound investment set new records both in the U.S. and around the world. North America has jumped to the forefront of Chinese business activity, but this development is likely to be temporary: The pattern over time is for Chinese enterprises to move as a group from region to region. Energy and metals draw the most money. The outlook for Chinese investment in 2013 and beyond is positive, but setbacks will continue to occur, due in part to foreign suspicion of state firms. The U.S. in particular should formulate policy to ensure competition, with the Chinese firms that come here, in the Chinese market itself, and around the world through the Trans-Pacific Partnership and other agreements that liberalize market access. Chinese outward investment broke records in 2012, both around the world and in the United States. Foreign distrust of state enterprises and other obstacles will serve as a check on the pace of growth, but the willingness to pay top dollar for energy and other assets ensures a higher profile for Chinese firms. The People's Republic of China (PRC) is hardly buying up Latin America or the world oil market, but it is expanding its share. [ODI] [China competition]
• CHINA’S IMPACT ON KOREAN PENINSULA UNIFICATION AND QUESTIONS FOR THE SENATE
  A MINORITY STAFF REPORT PREPARED FOR THE USE OF THE COMMITTEE ON FOREIGN RELATIONS UNITED STATES SENATE ONE HUNDRED TWELFTH CONGRESS SECOND SESSION DECEMBER 11, 2012 Printed for the use of the Committee on Foreign Relations [Unification] [US NK policy][China NK]
• Destined To Fail: China’s Soft Power Push
  January 07, 2013 By Zachary Keck Beijing is expanding efforts to enhance its soft power. Events at home illustrate why such moves are headed for trouble. n a little noticed event on New Year’s Day, China inaugurated its first non-profit organization dedicated to the promotion of soft power—China Public Diplomacy Association (CPDA). Foreign Minister Yang Jiechi attended and spoke at the unveiling ceremony for the group, which elected as its president Li Zhaoxing, the chairman of the Foreign Affairs Committee of China's National People's Congress. Addressing the group after the vote, Li told its members that the CPDA would mobilize and coordinate “social resources and civilian efforts” towards the goal of "promoting China's soft power." In some ways, China’s desire to strengthen its soft power capabilities seems entirely logical. After all, ancient Chinese leaders masterfully wielded soft power. And as China’s economic power has risen in recent years, the Chinese government has adopted various measures to enhance China’s soft power, such as establishing global news services (most recently, China Daily’s Africa Weekly) and Confucius Institutes across the world. Outside of China some have spoken of a Beijing Consensus that is supposedly supplementing the Washington Consensus in terms of the most favored political-economic model. [China confrontation] [Softpower]
• China, the American Press, and the State Department
  Posted by Evan Osnos It’s time for the State Department to take up the matter of American reporters in China, and Chinese reporters in America. The work of the American press in China has become so contentious, and so central to our understanding of China’s political picture, that it’s worth stepping back, for a moment, to put a remarkable year in perspective: in the span of twelve months, foreign news organizations including the Times, the Wall Street Journal, and Bloomberg News have ratcheted up their scrutiny of China’s politicians to a level of forensic detail that we have rarely, if ever, seen in foreign correspondence. . Read more: http://www.newyorker.com/online/blogs/evanosnos/2013/01/china-the-american-press-and-the-state-department.html#ixzz2HMhJ7biy [Media]
• MAC poll finds support for deeper cross-strait ties
  MAC poll finds support for deeper cross-strait tiesMost respondents in the latest MAC poll support the ROC government’s policy to improve relations with mainland China. (Courtesy of MAC) •Publication Date:01/04/2013 •Source: Taiwan Today Most Taiwanese back the ROC government’s policy of improving relations with mainland China, according to a survey released by the Mainland Affairs Council Jan. 3. Following the past four years’ increasingly close relations between mainland China and Taiwan, the survey found that 76.4 percent of respondents supported the government’s policy of exchanges on human rights, legal, trade, educational, social and other fronts, to promote mutual understanding between people on both sides of the strait. Moreover, 42.8 percent of respondents believe that such exchanges were exercising a direct influence on mainland China. [Straits]
• U.S. Seeks Answers About Chinese Underground Nukes
  A new law passed by the U.S. Congress calls on the Pentagon to come up with a plan to neutralize nuclear weapons stored in Chinese subterranean storage facilities. The existence of the so-called "Underground Great Wall," which sits hundreds of meters deep inside a mountainous area and stretches for 5,000 km, was first revealed in 2009.
• China 'Gave N.Korea GMO Grain Since 2004'
  China provided North Korea with genetically modified grain since 2004, the anti-Beijing website Boxun reported on Sunday. The website cited an official in China's Agriculture Ministry as saying that former leader Deng Xiaoping's daughter Deng Nan was responsible for sending the GMO grain to North Korea when she was in charge of supplying 1,000 tons of food aid to the North. But North Korea has no idea that the grain it received from China was genetically altered, Boxun claimed. The website has been responsible for several reports recently exposing the dark underbelly of Chinese politics, but some have been exaggerated or inaccurate. Boxun claimed China gave North Korea 10 million tons of grain since 2004 or an average of 1.2 million tons a year. But the actual amount is estimated to be much smaller, ranging from 150,000 to 300,000 tons a year.
• Exclusive: U.S. nuclear lab removes Chinese tech over security fears
  By Steve Stecklow LONDON | Mon Jan 7, 2013 7:48am EST (Reuters) - A leading U.S. nuclear weapons laboratory recently discovered its computer systems contained some Chinese-made network switches and replaced at least two components because of national security concerns, a document shows. A letter from the Los Alamos National Laboratory in New Mexico, dated November 5, 2012, states that the research facility had installed devices made by H3C Technologies Co, based in Hangzhou, China, according to a copy seen by Reuters. H3C began as a joint venture between China's Huawei Technologies Co and 3Com Corp, a U.S. tech firm, and was once called Huawei-3Com. Hewlett Packard Co acquired the firm in 2010. The discovery raises questions about procurement practices by U.S. departments responsible for national security. [China confrontation]
• Four Surprises That Could Rock Asia in 2013
  Are we paying attention to the wrong crises? BY MICHAEL MAZZA | JANUARY 3, 2013 As the world's center of economic gravity shifts from the Atlantic to the Pacific, it's moved from a region of enduring peace to one of pervasive friction. Last spring, China and the Philippines nearly came to blows over a small shoal in the South China Sea. In mid-December, Japan dispatched eight fighter planes after a small Chinese plane entered Japanese airspace, near a group of disputed islands in the East China Sea. North Korea tested another missile in mid-December, and appears to be preparing for a third nuclear test. Peace between India and Pakistan remains elusive, while Indonesia and the Philippines continue to wrestle with Islamic terrorism. But there are quieter threats to Asia, potentially more explosive than a North Korean missile. Here are four underappreciated threats to the world's most populous region: Taiwan Independence [Taiwan]
• Analysis: U.S. arms sales to Asia set to boom on Pacific "pivot"
  By Jim Wolf WASHINGTON | Tue Jan 1, 2013 10:17am EST (Reuters) - U.S. sales of warplanes, anti-missile systems and other costly weapons to China's and North Korea's neighbors appear set for significant growth amid regional security jitters. Strengthening treaty allies and other security partners is central to the White House's "pivot" toward a Pacific region jolted by maritime territorial disputes in China's case, and missile and nuclear programs, in North Korea's. [Arms sales] [Pivot] [Threat] [China confrontation] [Alliance]
• MOFA defends South China Sea sovereignty
  The ROC exercises full sovereignty over the Nansha and Xisha archipelagos in the South China Sea. (Courtesy of Kevin Cheng) •Publication Date:01/03/2013 •Source: Taiwan Today The ROC government does not recognize Vietnam’s claim to sovereignty over the Nansha (Spratly) and Xisha (Paracel) islands in the South China Sea as described in its maritime law, the ROC Ministry of Foreign Affairs said Jan. 2. “Whether from the point of view of history, geography or international law, the Nansha, Xisha, Zhongsha (Macclesfield Bank) and Dongsha (Pratas) archipelagos and their surrounding waters are all undoubtedly integral parts of ROC territory,” the MOFA pointed out. [Territorial disputes] [South China Sea]
• China asks whom South Korea-US alliance targets
  This is the first in a series highlighting President-elect Park Geun-hye’s options in dealing with China. — ED. 2012-12-31 17:25 By Sunny Lee Yang Xiyu BEIJING – Against the backdrop of America's deepening military and security engagement in the Asia-Pacific, including the U.S. decision to expand its missile-defense shield, China has been increasingly raising its eyebrows at the military alliance Seoul has with Washington. Simply put, China is suspicious whether South Korea’s defense pact with the U.S. is not just against North Korea, but also against China. Yang Xiyu, an insider of the Chinese foreign-policy thinking, who was former director in charge of the Korean affairs at the Chinese foreign ministry, views the U.S.-South Korea military alliance as “potentially the hottest-button issue” that could test the bilateral ties in the incoming Park Geun-hye and Xi Jinping administrations. “From China’s geo-strategic perspective, the biggest question it has with South Korea is about the nature of Seoul-Washington military alliance,” Yang told The Korea Times in an exclusive interview. [China confrontation] [China SK]
• 'US won't intervene in China-Japan confrontation'
  The United Stated is not likely to intervene in the event that China and Japan enters into a confrontation over the island called Daioyidao by the Chinese and Senkaku by the Japanese, a Chinese scholar projected. As reported through the South China Morning Post in Hong Kong, Wang Hanlin of the Academy of Social Sciences of China said in an international forum while the issue of the Senkaku Islands is included in the U.S.-Japan security agreement. However, it will be difficult for the United States to intervene in confrontations between the two East Asian countries over the disputed island. “As seen in the case of the British invasion of the Falkland Islands, the United States refrained from intervening despite the fact that the two countries are some of the closest allies in the world,” Wang told the forum. [Territorial disputes] [US Japan alliance] [Chinese IR]