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Prior to 2009 this page also included material on India

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• N.Korea's Cross-Border Business with China Picking Up
  Cross-border business between North Korea and China is picking up, with construction of a new bridge connecting Sinuiju in North Korea to China's Dandong across the Apnok (or Yalu) River finally about to begin. And a Chinese company apparently obtained use of a dock at North Korea's Rajin-Sonbong port in North Hamgyong Province and began shipping coal out of the communist country. Diplomatic sources in Beijing say cash-strapped North Korea is stepping up trade with China due to strained ties with South Korea compounded by UN sanctions. But private Chinese companies are on the whole wary of investing in North Korea due to political uncertainties and a lack of infrastructure there. [China NK]
• Chinas, Russia Urge 2 Koreas to Talk
  China and Russia agree that direct dialogue between North and South Korea is needed to ease tensions on the peninsula created following the North's shelling of Yeonpyeong Island last month. Chinese Assistant Foreign Minister Cheng Guoping, met with Russian Deputy Foreign Minister Alexei Borodavkin in Moscow on Tuesday to discuss political developments on the peninsula, China's Xinhua news agency reported Wednesday. [Peace efforts]
• Beijing 'Pouring Money into N.Korea's Special Economic Zone'
  Rumor has it that China is getting directly involved in the development of North Korea's Rajin-Sonbong Port, once the center of the UN Development Programme's Duman (or Tumen) River project in 1991. A source in Beijing said Wednesday, "As far as I'm aware, North Korea and China's Commerce Ministry recently signed a memorandum of understanding outlining Beijing's investment of US$3.5 billion over five years beginning next year" in the special economic zone there. The source said China is investing in roads, ports and gas facilities in the region. The Rajin-Sonbong area, at the mouth of the Duman River, is a strategic point of economic cooperation between the two countries, but neither bank is Chinese territory. One side is in North Korea and the other in Russia, so to get to the East Sea China had to borrow a port from either side. China did nothing about the UNDP initiative in the 1990s, but since the mid-2000s, it has set its eyes on the area. North Korea for some reason rented out the best equipped dock there to Russia in 2008 but since last year it has been seeking investment from China to overcome dried-up aid from South Korea amid international sanctions. North Korean leader Kim Jong-il urged Chinese President Hu Jintao when he visited China in May this year to invest in the region. But the rumor of direct investment from the Chinese government has not been confirmed. One diplomatic source in Beijing said, "I've heard nothing about the Chinese Commerce Ministry's direct involvement in negotiations. It's just one of many rumors since North Korea became active in developing the Rajin-Sonbong area." englishnews@chosun.com / Dec. 30, 2010 12:43 KST [China NK] [SEZ] [Rajin]
• The South China Sea: Back to the Future?
  By Mark J. Valencia December, 2010 Although maritime security is an issue in many parts of Asia, the South China Sea poses some of the most vexing challenges. Maritime policy analyst Mark J. Valencia argues that these waters are quickly shaping up as a dangerous area of dispute in the struggle for hegemony in Asia between China and the United States. Caught in the middle are the nations of Southeast Asia, which have many territorial and jurisdictional disputes in the South China Sea between themselves as well as with China. [China confrontation] [Territorial disputes]
• When Comparing Navies, Measure Strength, Not Size
  By James R. Holmes & Toshi Yoshihara December, 2010 In the popular imagination, the maritime security of a nation is tied to the size of its navy. But even among specialists in naval affairs, there are sharp differences over how to measure the relative power of navies. James R. Holmes and Toshi Yoshihara of the US Naval War College show how a possible naval conflict between the US and China would upend conventional views on which country’s navy is the stronger. THE IDEA OF COMPARING navies sounds straightforward, doesn’t it? To figure out which nation sports the largest navy, just break out the nearest copy of Jane’s Fighting Ships, tally up the number of keels supplied in the handy chart for each nation, and compare figures. The navy with the most ships wins. But this simple process of bean-counting soon collides with reality. A quick example: on paper, China’s People’s Liberation Army Navy (PLAN) is double the size of the US Navy. This is an absurd result, implying that American leaders must avoid a maritime conflict with China at all costs. Going by the numbers, the PLAN would prevail even over the combined fleets of the US-Japan alliance. Absurd, yet that’s the story that raw statistics tell. [China confrontation] [Military balance]
• China's Anti-Aircraft Carrier Missile 'Closer to Completion'
  China is getting closer to building a ballistic missile designed to sink aircraft carriers, the chief of the U.S. Pacific Command claimed Monday. Adm. Robert Willard told the Asahi Shimbun he believes that the Chinese anti-ship ballistic missile program has reached "initial operational capability." This means that "a workable design" has been settled on and is being developed further. The missile, dubbed Dong Feng 21D, is expected to be a ship-to-carrier ballistic missile capable of carrying six 450 kg warheads and have a range of 1,300-2,000 km. It has been described as an "aircraft carrier killer" because it can sink a carrier with a single stroke by penetrating the hull and then exploding inside. A prototype was first shown during a parade marking the 60th anniversary of the People's Liberation Army in April 2009. [China confrontation] [Military balance]
• What’s wrong with Seoul-Beijing ties?
  Professor Zhao Huji By Sunny Lee BEIJING — “South Korea has been deeply frustrated with China while dealing with the Cheonan and Yeonpyeong incidents,” observed Professor Zhao Huji, an expert on Korean affairs at the Party School of the Central Committee of the Communist Party of China. [China SK]
• South Korean military spy expelled from China
  By Lee Tae-hoon China expelled a South Korean Army major on charges of espionage this year after more than a year of post-trial detention there for collecting information on North Korea, military sources said Tuesday. They say Chinese police arrested the South Korean officer in July 2009 in Shenyang, a northeastern Chinese city, and the court sentenced him to a three-year jail term on charges of spying on North Korea's nuclear programs and missiles. The Ministry of National Defense did not confirm nor deny the expulsion of the major, noting that such a matter is classified and highly sensitive. Sources say he was repatriated to South Korea in late September. [Espionage]
•   China Moving Toward Deploying Anti-Carrier Missile
    By THE ASSOCIATED PRESS Published: December 28, 2010 . Filed at 2:15 a.m. EST   BEIJING (AP) — The commander of the U.S. Pacific Command says China is moving closer to deploying a ballistic missile designed to sink an aircraft carrier.   Adm. Robert Willard told Japan's Asahi Shimbun newspaper that he believed the Chinese anti-ship ballistic missile program had achieved "initial operational capability," meaning that a workable design had been settled on.   Willard says the system's component parts have likely been developed and tested, but U.S. sources have not detected an over-water test to see how well it can target a moving ship. He says years of tests are still needed.   The missile, known as the Dong Feng 21D, is considered a key component of China's strategy of denying access to the western Pacific by U.S. planes and ships.   [China confrontation] [Military balance]    
• Negotiating the China challenge
  December 26th, 2010 Author: Hugh White, ANU If 2009 was the year it became inescapably clear that China’s economic rise was powering an equally significant increase in its strategic and political weight, then 2010 was the year it became inescapably clear that China is using its new weight to test the US-led order in Asia. Whether intended by Beijing or not, the series of disputes over maritime issues in the South China Sea, East China Sea and Yellow Sea clearly signal China’s desire to rewrite the rules governing the exercise of power in the Western Pacific. The rest of us now need to decide how to respond. [China confrontation] [Inversion] [Resurgence] [Agency]
• Sino-US geopolitical rivalry does not help Korean stability
  December 21st, 2010 Author: Frans-Paul van der Putten, Clingendael Institute The United States government believes China needs to do more to contribute to stability on the Korean peninsula. According to this view, North Korea is highly dependent on Chinese support and Beijing should use its influence to moderate Pyongyang’s behavior. As some American and other Western observers have put it, it is time for China to start behaving like a responsible great power. But it is not likely that China will fundamentally alter its policies. The main reason for this is that geopolitical rivalry between China and the United States overshadows the situation on the Korean peninsula. Lately both Chinese and US actions have escalated this rivalry. As long as the two powers are more interested in keeping the other in check than in stabilising the peninsula no significant progress in terms of stabilising the region is possible. [China NK] [China confrontation] [MISCOM]
• China and the DPRK: With friends like these….
  December 20th, 2010 Author: Ron Huisken, ANU China’s posture toward the DPRK is under scrutiny. Over recent years, a growing number of observers have concluded that, aside from the question of how much leverage China had over Pyongyang, stopping the DPRK’s nuclear program was not China’s first priority (as it was for the ROK, Japan and the US). [China NK] [MISCOM]
• Chinese Trawler Incident Sets Bad Precedent
  Three Chinese crew who were detained after their fishing boat rammed a Korean Coast Guard vessel and sank on Dec. 18, have been freed, apparently due to pressure from Beijing. "After reviewing video footage and radar records, we were able to determine that obstruction of justice was committed, but we decided to drop the charges since the three were not directly involved, and the ship's deceased captain was the instigator," prosecutors said
• Fake wine stuns nation
  Source: Global Times [08:06 December 27 2010] Comments A woman tours a cellar of the Great Wall Wine production base in 2009 in Changli county, Hebei Province. Photo: IC By Liu Linlin In the latest food scandal to rock China, six people were detained, more than a dozen corporate accounts were frozen and tainted wine bottles were pulled off shelves after red wine made in Changli county, Hebei Province, was found to have been both chemically altered and falsely labeled as a superior product. The Jiahua, Yeli and Genghao wineries have been accused of forgery and of adulterating their wine, during investigations by the local government that shut down their operations, the Xinhua News Agency reported Sunday, adding that sixteen corporate accounts involving 2.83 million yuan ($427,000) were frozen. [Quality]
• [Editorial] Diplomatic relations with China post sinking
  The Dec. 18 sinking of a Chinese fishing boat while attempting to hinder an illegal fishing crackdown by the South Korean Coast Guard in the West Sea, and the subsequent handling of the incident, show the complex situation currently facing South Korea-China relations. Both countries need to take a lesson from this episode and refrain from actions that raise tensions needlessly, while showing the wisdom to coexist harmoniously. [China SK]
• Inter-governmental Protocol between DPRK-China Inked
  Pyongyang, December 24 (KCNA) -- A protocol on the 44th meeting of the DPRK-China inter-governmental committee for scientific and technological cooperation was signed in Beijing on December 24. Present at the signing ceremony from the DPRK side were members of the DPRK government science and technology delegation led by Choe Sang Gon, vice-chairman of the State Science and Technology Commission, and a minister of the DPRK embassy in Beijing and from the Chinese side a vice-minister of Science and Technology of China and officials concerned. [China NK]
• Scholars predict China, DPP engagement in 2011
  2010/12/25 18:22:15 Taipei, Dec. 25 (CNA) China will talk more about the "1992 consensus" than the one China principle, while Taiwan's opposition Democratic Progressive Party (DPP) will seek dialogue with China without giving up its pro-independence stance in 2011, scholars [Straits]
• Military strength eludes China, which looks overseas for arms
  By John Pomfret Washington Post Staff Writer Saturday, December 25, 2010; 12:00 AM MOSCOW - The Moscow Machine-Building Enterprise Salyut on the east side of town has put up a massive Soviet-style poster advertising its need for skilled workers. The New Year's party at the Chernyshev plant in a northwest suburb featured ballet dancers twirling on the stage of its Soviet-era Palace of Culture. The reason for the economic and seasonal cheer is that these factories produce fighter-jet engines for a wealthy and voracious customer: China. After years of trying, Chinese engineers still can't make a reliable engine for a military plane. The country's demands for weapons systems go much further. Chinese officials last month told Russian Defense Minister Anatoly E. Serdyukov that they may resume buying major Russian weapons systems after a several-year break. On their wish list are the Su-35 fighter, for a planned Chinese aircraft carrier; IL-476 military transport planes; IL-478 air refueling tankers and the S-400 air defense system, according to Russian news reports and weapons experts. This persistent dependence on Russian arms suppliers demonstrates a central truth about the Chinese military: The bluster about the emergence of a superpower is undermined by national defense industries that can't produce what China needs. Although the United States is making changes in response to China's growing military power, experts and officials believe it will be years, if not decades, before China will be able to produce a much-feared ballistic missile capable of striking a warship or overcome weaknesses that keep it from projecting power far from its shores. [Military balance] [China confrontation] [Self delusion]
• Frank Bessac, anthropologist who made daring escape from war-torn China, dies at 88
  By T. Rees Shapiro Washington Post Staff Writer Friday, December 24, 2010; 6:07 PM In 1949, Frank Bessac was a Fulbright scholar studying in Inner Mongolia when communist forces began organizing bloody raids across China. Fleeing for his life, he embarked on what became an 11-month, 1,500-mile trek to seek asylum in Tibet. Before the journey ended, three men in his traveling party would be shot, beheaded and buried in shallow graves near the Tibetan border. When the student made it back to the United States, the story of his safe return made national headlines. His autobiographical account of the trip appeared in Life magazine and vividly portrayed his harrowing tale of survival. But many details of the epic sojourn remained hidden for a half-century, including that one of the three men killed was a clandestine CIA agent - the first to die in the line of duty. [Espionage]
• China Calls for Peaceful Settlement in Trawler Row
  China on Thursday called for a peaceful settlement of an incident in which one Chinese fisherman died and two went missing after their trawler rammed a South Korean Coast Guard patrol boat and capsized on Dec. 18. Eight other fishermen were rescued from the water, but one later died.
• Chinese Vagueness About Korean Issues Hampers Communication
  Jiang Yu /AP China's reluctance to call a spade a spade in matters concerning the Korean Peninsula, apparently prompted by a desire to cover for North Korea at all costs, is making communication with the emerging superpower practically impossible, diplomats complain. [China confrontation]
• China’s North Korea Shift Helps U.S. Relations
  China’s influence was cited when North Korea did not respond militarily to air and ground drills held this week by South Korea. By MARK LANDLER Published: December 23, 2010 WASHINGTON — Few debates have strained relations between the United States and China more this year than how to handle an unruly North Korea. But after a tense week, when the threat of war hung over the Korean Peninsula, the Obama administration and Beijing seem finally to be on the same page. Administration officials said the Chinese government had embraced an American plan to press the North to reconcile with the South after its deadly attacks on a South Korean island and a warship. The United States believes the Chinese also worked successfully to curb North Korea’s belligerent behavior. [China NK] [Self delusion] [Inversion]
• U.S., China end year on positive note as they prepare for presidential summit
  By John Pomfret Washington Post Staff Writer Thursday, December 23, 2010; 11:47 PM The United States and China are closing out the year on a positive note on many fronts - including trade, military ties, climate change and global security - as both sides prepare for their presidents' second summit, set for next month. [US China]
• China Times: DPP's China policy at crucial juncture
  2010/12/23 16:24:31 When the chief negotiators across the Taiwan Strait, Chiang Pin-kung of Taiwan and China's Chen Yunlin, first held talks in Taipei two years ago, the pro-independence opposition Democratic Progressive Party led massive protests against the meeting. But similar scenes did not occur when Chiang and Chen met with each other in Taipei this week. During the run-up to last month's special municipality elections, the DPP did not even challenge the economic cooperation framework agreement signed with China in June, because surveys conducted by the DPP itself [Straits] [Separatism]
• China's Bullying Serves Nobody's Interests
  China wants compensation from Korea for an incident last week in which a Chinese trawler sank off the coast of Gunsan in the West Sea after ramming a South Korean Coast Guard ship to obstruct a search on suspicion of illegal fishing in South Korean waters. Chinese Foreign Ministry spokeswoman Jiang Yu said on Tuesday, "South Korea should do its best to search for the missing crewman and severely punish those responsible." She added Seoul should also "compensate for damage done to the Chinese fishermen and take thorough measures to prevent recurrence of similar incidents." The offender is blaming the victim. [China confrontation]
• Seoul Slams Chinese Support for N.Korean Use of Nuclear Power
  Seoul slammed Beijing on Wednesday for saying North Korea has the right to use nuclear power. "China appears to have lost its discernment and sense of balance," a Foreign Ministry official said. "It's possible to talk about the right to peaceful use of nuclear power for countries that are signatories to the Nuclear Non-Proliferation Treaty and undergo International Atomic Energy Agency inspections. But neither is the case with the North, which withdrew from the NPT and expelled IAEA inspectors," the official said. "China surely understands this situation but is clouding the issue of the North's denuclearization." [Nuclear energy] [Double standards] [China confrontation]
• Most Americans, Japanese Don't Trust China
  Most Japanese and Americans have little or no confidence in China, a survey shows. The Gallup poll published Wednesday by the Yomiuri Shimbun was conducted among 1022 Japanese and 1002 Americans and showed that 87 percent of Japanese and 65 percent of Americans do not trust China. [China confrontation] [Public opinion] [Media]
• 'Month of Calm' Expected on Korean Peninsula
  Experts predict that "calm would return to the Korean Peninsula for about a month," the Washington Post said Tuesday. This is "enough time to allow China's President, Hu Jintao, to return home from a trip to Washington expected to take place in the latter half of January," the daily wrote. The North would not dare to make trouble before Hu finishes his visit to Washington, the daily speculated. It reminded readers that Chinese State Councilor Dai Bingguo visited North Korea on Dec. 9 and that China and North Korea according to the Xinhua news agency reached "consensus" on the situation -- "which many analysts interpreted to mean a North Korean agreement not to provoke South Korea in the short term." [Inversion]
• All-out war unlikely on the Korean Peninsula
  Source: Global Times [08:26 December 23 2010] Comments Luo Yuan Editor's Note: The situation on Korean Peninsula became more intensified and complicated after the South Korean artillery exercises on Yeonpyeong Island on Monday. Confronted with South Korea's military drill, the North didn't respond by military retaliation as many had feared. How will the tension on the Korean Peninsula further develop? What role should China play in easing the situation? People's Daily Online (PO) interviewed Luo Yuan (Luo), major general in the PLA Academy of Military Sciences, on these issues. PO: Why did South Korea make the artillery exercise such a high-profile action? And what impact might result from it on the Korean Peninsula? Luo: As far as I can see, South Korea's high-profile drill conveys a certain message and is a diplomatic gesture. There are three objectives: first, to show the determination of retaliation against the North's future adventures; next, to comfort South Koreans and relieve domestic pressure; finally, to remind Americans that the crisis on the peninsula hasn't ended, so as to keep American forces in this region and tie America to their chariot. This operation can easily escalate the crisis between the North and the South, aggravating the status quo. PO: North Korea did not take action against the South's artillery exercise. Why didn't the North "defend itself?" Luo: North Korea's behavior seems to follow no routine at all, and that's its style. They take action only when the circumstance is propitious. What they do here has nothing to do with what they may do there, and the restraint they show on Yeonpyeong now won't lead to restraint in other areas.
• Korea-China discord deepens after trawler capsizes
  12-22-2010 17:30 By Kang Hyun-kyung China frustrated South Korea, Tuesday, by speaking publicly on behalf of North Korea over the reclusive nation’s right to use nuclear energy peacefully and blaming Seoul for the capsizing of a Chinese trawler. This has caused a stir in the South and analysts say Seoul-Beijing ties have hit an all-time low point recently. [China SK]
• China Blames S.Korea for Clash with Chinese Trawler
  The Chinese Foreign Ministry is calling South Korea to account for the dead and missing crew of a Chinese fishing boat which rammed into a South Korean coast guard patrol boat while illegally fishing in the West Sea last Saturday. In a press briefing on Tuesday, Chinese Foreign Ministry spokeswoman Jiang Yu said, "South Korea should do its best to search for the missing crewman and severely punish those responsible." She added Seoul should also "compensate for damage done to the Chinese fishermen and take thorough measures to prevent recurrence of similar incidents." The spokeswoman denied the Chinese were engaged in illegal fishing. "According to the South Korea-China fishery agreement, fishing boats of the two countries can enter these waters [where the incident happened]. The two countries can enforce law only on their own fishing boats."
• China and Russia to Hold Joint Naval Exercises
  China and Russia will hold their first joint naval exercise next year in the northern part of the East Sea, Hong Kong's Phoenix TV reported Monday citing Russian media. China and Russia used to hold joint military exercises on land near their shared border that stretches 4,350 km, but the annual exercise, dubbed "Peace Mission," will be held at sea for the first time in 2011. It is unclear whether the drill is a response to joint military exercises earlier this year involving U.S., South Korean and Japanese troops. Phoenix TV did not say when the joint drill will take place but reported, "Russia has already prepared a basic training plan and both sides plan to meet early next year to discuss it." A Russian military expert said the country recently reorganized its military structure from six to four regions, and only troops under the Eastern command will participate in the exercise. Last year's Peace Mission exercise, held in Khabarovsk, Russia and Shenyang, China, involved around 2,600 soldiers from both sides. Joint drills this September in Kazakhstan involved around 5,000 troops from five countries. englishnews@chosun.com / Dec. 21, 2010 13:26 KST [Joint US military] [Resurgence]
• China hails UN Security Council talks on Korea
  22:37 20/12/2010UN, December 20 (RIA Novosti) - An emergency meeting of the United Nations Security Council initiated by Russia helped to prevent a military conflict between South and North Korea, China's deputy envoy to the UN, Wang Min, said on Monday. "Yesterday China supported Russia's proposal to call for an urgent meeting of the [UN] Security Council on the situation on the Korean peninsula," Wang said. "Members of the council, including China, the United States and Russia have made efforts to the extent possible to avoid armed conflict on the peninsula." At the closed-door emergency meeting on Sunday, participants discussed a Russian draft statement calling on both North and South Korea to refrain from the escalation of conflict. A jarring of opinion between the United States and China prevented the adaptation of a coordinated statement. The United States insisted on a clear condemnation of the reclusive communist regime, whereas China was against blaming Pyongyang. South Korean military conducted 90-minute live-firing exercises on Yeonpyeong Island near the disputed border with North Korea earlier on Monday. The drills went ahead despite threats of retaliation from Pyongyang, a month after the North Korean military shelled the island, killing four people. The North does not recognize the sea border between the two countries, known as the Northern Limit Line, and claims the waters around Yeonpyeong are its territory. [Clash] [UNUS]
• China Steps Up Pressure on Koreas
  China stepped up pressure on North and South Korea Saturday to exercise self-restraint to ease what it says are "extremely precarious" tensions on the Korean Peninsula. China summoned ambassadors from the two countries to voice its concerns about South Korean plans for live-fire artillery drills from an island the North shelled last month, and the North's vow to strike back even harder than it did last month if the South carries out the exercises. South Korea delayed the drills on Yeonpyeong Island on Saturday because of bad weather, but a military official said it still expects to stage them on Monday or Tuesday. He said South Korea has a "right to conduct" its military drills. China, North Korea's chief ally, said it was "firmly and unambiguously opposed" to any actions that would escalate tensions in the region. [Peace efforts]
• China signs $35bn in deals with Pakistan
  By James Lamont in New Delhi and Farhan Bokhari in Islamabad Published: December 19 2010 11:37 | Last updated: December 19 2010 11:37 Chinese premier Wen Jiabao has unveiled $35bn in economic deals with Pakistan, as part of a plan to commercially integrate the nation with China’s western region. During a visit to Pakistan, Mr Wen on Sunday promised to create a deep alliance between Islamabad and Beijing based on economic co-operation that would tie the south Asian nation to China’s economic transformation. Mr Wen unveiled $20bn in government-to-government contracts and another $15bn in private sector deals. China wants to diversify its relationship with Pakistan – which is based on supplying arms – to build infrastructure that would help China secure land access to the Arabian Sea. Such transport links would boost Chinese exports to the Middle East and Europe, and help secure energy and commodity imports from the Middle East and Africa. The agreements outstrip the $16bn in deals China signed with India when Mr Wen recently visited Delhi. They are also a firm signal that Pakistan has an alternative to the US, which considers Pakistan a key – but not always reliable – ally in the fight against Islamic extremism and supplies considerable financial and military assistance. The wide-ranging deals announced include the development of oil, gas and mineral resources in Pakistan. China also agreed to help Pakistan develop a space industry, expertise in oceanology, and more electronics and heavy industry. The deals also include Chinese investment in the Karakoram Highway, which connects Islamabad to the north-western Chinese province of Xinjiang. “This will be an important step for China to build road and rail links to eventually link Xinjiang to Pakistan’s southern coast along the Indian Ocean,” said a Pakistani official. Mr Wen described the friendship between Beijing and Islamabad as “solid as a rock”, an affirmation that causes anxiety in India which views ties between China and Pakistan with increasing suspicion as a strategy to isolate it in south Asia. Senior Pakistani officials applauded the magnitude of the Chinese engagement, saying the Chinese premier’s visit – the first in five years – represented Beijing’s most concerted attempt to help transform Pakistan’s economy. Mr Wen told Pakistan’s parliament that China wanted to forge “deeper, closer and stronger” ties with Pakistan. The Chinese premier said “China and Pakistan will remain brothers for ever” in spite of Pakistan’s vulnerability to Islamist insurgency. Shortly after Mr Wen spoke, Chaudhary Nisar Ali, leader of the opposition in parliament, said: “You can go to any corner of our country and ask anyone about China and they will only say, China is a true friend. We [politicians] may have our differences but there is no difference on China.” But other senior politicians were careful not to interpret Chinese assistance as undermining efforts to secure a lasting peace with arch-rival India. Yusuf Raza Gilani, Pakistan’s prime minister, said the warmth of the bilateral relationship between his country and neighbouring China was “not directed against any country”.
• China again calls for restart of Six-Party Talks
  English.news.cn 2010-12-16 19:38:15 BEIJING, Dec. 16 (Xinhua) -- China on Thursday again called for a restart of the Six-Party Talks, saying parties involved in the dialogue should strive to bring it back on track. Foreign Ministry spokeswoman Jiang Yu made the remarks at a regular news briefing when commenting on the Korean Peninsula situation. Jiang said the situation on the Peninsula is still sensitive and complicated, and required all parties concerned to work together to find a solution. If the situation becomes chaotic, the first to suffer will be the people of the Korean Peninsula, said Jiang, once again calling on relevant parties to stay calm and refrain from actions that could increase tensions. We hope all parties concerned will jointly safeguard the peace and stability of the Korean Peninsula, she said. "China's position on safeguarding the peace and stability of the Peninsula and Northeast Asia is unswerving," she stressed. According to media reports, the Republic of Korea (ROK) will soon carry out a live fire artillery drill in waters southwest of Yeonpyeong Island near the disputed western maritime border between the Democratic People's Republic of Korea and the ROK on a selected day from Dec. 18 to 21 depending on weather conditions. [Peace efforts] [Provocation] [China global strategy]
• President denounces North Korea's actions
  2010/12/16 15:56:29 Taipei, Dec. 16 (CNA) President Ma Ying-jeou again condemned North Korea Thursday for the Nov. 23 artillery attacks on a South Korean island, which has caused an escalation of regional tensions over the past three weeks. Ma expressed hope that stability and prosperity will be restored [Clash]
• To Conquer Wind Power, China Writes the Rules
  By KEITH BRADSHER Published: December 14, 2010 TIANJIN, China — Judging by the din at its factory here one recent day, the Spanish company Gamesa might seem to be a thriving player in the Chinese wind energy industry it helped create. But Gamesa has learned the hard way, as other foreign manufacturers have, that competing for China’s lucrative business means playing by strict house rules that are often stacked in Beijing’s favor. Nearly all the components that Gamesa assembles into million-dollar turbines here, for example, are made by local suppliers — companies Gamesa trained to meet onerous local content requirements. And these same suppliers undermine Gamesa by selling parts to its Chinese competitors — wind turbine makers that barely existed in 2005, when Gamesa controlled more than a third of the Chinese market. But in the five years since, the upstarts have grabbed more than 85 percent of the wind turbine market, aided by low-interest loans and cheap land from the government, as well as preferential contracts from the state-owned power companies that are the main buyers of the equipment. Gamesa’s market share now is only 3 percent. [China competition] [FDI]
• Small Korean Firms Lose Out to Chinese Rivals
  Small and medium-sized Korean businesses are being beaten by their Chinese rivals in the global market. According to a report by the Korea International Trade Association released on Monday, 21 Korean-made products have over the last four years lost their top spots in their respective global industries to Chinese-made ones, 20 of them manufactured by small and mid-sized firms in textile, apparel and plastics industries [China competition]
• The Yuan's Future Role in the Global Financial System
  11.12.2010 The planned December 15 opening of the rouble-yuan trading in Russia is a symbolic and potentially historical event. It reflects tectonic shifts in the world's economy and politics and accordingly promises a transformation of the global financial architecture. At the moment China's contribution to the global economy far exceeds the scope of the yuan international circulation and the Chinese currency's share in national financial reserves. Consequently the financial strategies based on positive expectations concerning the coming status of the yuan will almost undoubtedly pay off. What should currently come into the spotlight is not the alleged yuan undervaluation but the potential that China's partners can unlock by partially switching to the yuan in the future. Today's debates over the state of the global financial system largely revolve around searches for currencies more stable than those designated at the moment as convertible. Naturally, the US dollar draws the lion's share of criticism considering that the rate of its injection into the global economy is clearly ahead of the US economic input and that the imbalance is placing the dollar's reserve-currency functionality in jeopardy. [Reserve] [China rising]
• Chinese Envoy Urged Kim Jong-il to Negotiate
  North Korean leader Kim Jong-il and Chinese State Councilor Dai Bingguo in a meeting last Thursday discussed China's proposal for a meeting of chief negotiators in six-party nuclear talks, it emerged Sunday. China briefed the South Korean Embassy in Beijing about the meeting last Friday. "The Chinese envoy apparently made no direct mention of the North's shelling of Yeonpyeong Island, but stressed the principle of cool-headedness and restraint," a South Korean government official said. "China did not tell us what Kim Jong-il said." [Media] [Inversion]
• Beijing firm on Nobel
  Source: Global Times [08:14 December 10 2010] Comments Chinese in Norway are planning to stage a demonstration opposite the Oslo City Hall Friday to protest the award, as they say it disrespects China's development and the majority of Chinese people.Photo:Google By Song Shengxia China won't bow to outside pressure over its opposition to Friday's awarding of the Noble Peace Prize to convicted criminal Liu Xiaobo, the Ministry of Foreign Affairs said Thursday, reasserting its opposition to the award a day before it was to be bestowed in Oslo, Norway. "Any attempt to use the issue to exert pressure on China or block China's development cannot succeed," ministry spokeswoman Jiang Yu said. "The Nobel Committee must admit it is in the minority. The Chinese people and a majority of countries and people in the world all oppose what they have done." Chinese in Norway are planning to stage a demonstration opposite the Oslo City Hall Friday to protest the award, as they say it disrespects China's development and the majority of Chinese people, according to Yuan Yaming, president of the Overseas Chinese Association in Norway. [China confrontation]
• China debriefs Seoul on Dai Bingguo’s Pyongyang visit
  China has debriefed South Korea on the meeting between the Chinese envoy Dai Bingguo and North Korea’s Kim Jong-il on Friday night, Yonhap News Agency reported Saturday. “North Korea’s stance didn’t seem to have changed much,” the report said, citing an unnamed diplomat, who apparently declined to go into details. Much attention was mounted on Dai’s meeting with Kim on whether China, North Korea’s largest economic benefactor, was able to persuade North Korea to contain its belligerence, in the aftermath of the latest Yeonpyeong artillery shelling. “It seems like the North told Dai more or less the same thing that it had already stated (publicly) regarding the Yeonpyeong attack and also the nuclear issue,” another diplomat, also unidentified by name, said in the report. This diplomat also said: “I suspect the North claimed that the shelling was a response to South Korea which it claimed provoked first.” China’s official Xinhua News Agency said on Tursday Dai and Kim “have reached an important consensus through candid and in-depth talks on the Korean Peninsula and the relations between two countries.” The report didn’t specify what the “consensus” was.
• S.Korea Makes Huge Increase to Chinese Diplomacy Budget
  Write 2010-12-10 11:47:46 Update 2010-12-10 14:18:27 The Foreign Ministry says three billion won of its budget for next year will be used to strengthen South Korea's diplomacy with China. A ministry official said Friday that the budget for South Korea-China diplomacy next year has been raised nearly seven times over the budget earmarked for this year. The ministry will increase its number of departments on Chinese affairs and will set up an analysis team focused on the domestic Chinese environment. Another team aimed at managing anti-Korean sentiment in China will be tasked with analyzing Chinese history, culture and public opinion. A bilateral strategic dialogue currently held at the vice-ministerial level will be boosted to the ministerial level. Overall, the budget for the Foreign Ministry next year has increased 14-point-seven percent to one-point-seven trillion won. [China SK] [China confrontation]
• Chinese Envoy Meets Kim Jong-il
  North Korean leader Kim Jong-il (right) holds the hand of visiting Chinese State Councilor Dai Bingguo as they walk together in Pyongyang on Thursday. /AP-Newsis Chinese State Councilor Dai Bingguo met with North Korean leader Kim Jong-il in Pyongyang on Thursday morning, China's official Xinhua news agency reported. The meeting came 11 days after Dai met with President Lee Myung-bak in Seoul on Nov. 28, right after the North's artillery attack on Yeonpyeong Island. [China NK]
• Chinese Envoy Rejects Call to Rein in N.Korea
  Cheng Yonghua A Chinese envoy on Thursday rejected calls for Beijing to curb North Korea made by the foreign ministers of South Korea, the U.S. and Japan earlier this week after the North's artillery attack on Yeongpyeong Island. Chinese Ambassador to Japan Cheng Yonghua said, "It's unreasonable for South Korea, the U.S. and Japan to ask China to use its influence over the North." Cheng was speaking with the Asahi Shimbun on Thursday. If the three countries "have anything to demand of the North, they should hold direct dialogue with the country," instead of China, he said. "Dialogue is the only way unless they want to aggravate the situation." [Bilateral]
• Chinese official visits North Korea to show support for Pyongyang
  By Chico Harlan Washington Post Foreign Service Thursday, December 9, 2010; 10:43 PM TOKYO - North Korean leader Kim Jong Il met Thursday in Pyongyang with a top Chinese diplomat, North Korea's official state media said, as the two countries boosted their "friendly and cooperative relations." According to the North Korean account, Chinese State Councilor Dai Bingguo conveyed a greeting from President Hu Jintao and presented Kim with a gift, reinforcing the cozy Pyongyang-Beijing relationship that has drawn recent criticism from the United States and other nations involved in the six-party talks about North Korea's nuclear ambitions. [China NK}
• China to Award 'Confucius Prize' as Counter to Nobel
  A newly formed Chinese organization says it will award its own peace prize on Thursday, a day before the Nobel Peace Prize is awarded in Norway to imprisoned Chinese dissident Liu Xiaobo. The announcement comes just three weeks after a Chinese newspaper proposed the creation of the "Confucius Peace Prize," named for the famed Chinese philosopher. It follows determined efforts to undermine Friday's Nobel ceremony in Oslo by pressuring governments to boycott the event. In e-mails to news organizations Wednesday, Confucius Prize organizers said the initial award will honor former Taiwan Vice President Lien Chen, who "built a bridge of peace between Taiwan and the mainland." Lien was chairman of Taiwan's Nationalist Party in 2005 when he made a historic trip to China, helping to ease decades of tensions between the two governments. [Resurgence]
• NGO creates 'Peace Prize'
  Source: Global Times [08:08 December 09 2010] Comments Lien Chan By Liu Linlin A Chinese committee, based on the mainland, has decided to award Lien Chan, honorary chairman of the Taiwan-based Kuomintang (KMT), the first-ever Confucius Peace Prize Thursday, a day before the Nobel Committee is due to award its Peace Prize to the convicted criminal Liu Xiaobo. Tan Liuchang, chairman of the Confucius Peace Prize Committee, told the Global Times Wednesday that his organization had informed Lien about the award through non-governmental channels. "Lien contributes immensely to the development of cross- Straits relations and to world peace," Tan said. [Resurgence]
• China and N. Korea Meet Over Crisis
  By REUTERS Published: December 9, 2010 SEOUL/TOKYO (Reuters) - China and its ally North Korea reached a consensus on the Korean peninsula crisis after "candid" talks in Pyongyang between Beijing's top diplomat and North Korean leader Kim Jong-il, Chinese state media reported. State Councilor Dai Bingguo met the isolated North's ailing leader in the capital Pyongyang for talks and "the two sides reached consensus on bilateral relations and the situation on the Korean Peninsula after candid and in-depth talks," Xinhua news agency said. North Korea's KCNA news agency said the talks were "held over the issue of boosting the friendly and cooperative relations between the two countries and a series of issues of mutual concern [China NK]
• Senior Chinese official meets North Korea's Kim
  The Associated Press Thursday, December 9, 2010; 1:39 AM SEOUL, South Korea -- A top Chinese foreign policy official met Thursday with North Korea's Kim Jong Il in Pyongyang amid the continuing military crisis on the Korean peninsula. China's official Xinhua News Agency did not immediately say what State Councilor Dai Bingguo discussed with Kim. But China is under heavy international pressure to defuse the tension, which spiked with North Korea's recent artillery attack on a South Korean island near the Koreas' disputed sea border. The barrage killed four South Koreans. [China NK]
• Noted US scholar hails ROC’s soft power
  •Publication Date:12/08/2010 •Source: United Daily News •By Elaine Hou The ROC government’s skillful exercise of its hard and soft power has enabled Taiwan to greatly improve cross-strait ties and expand its international space over the last two years. Such is the judgment of Joseph S. Nye, Jr., professor of international relations at Harvard University and one of the leading pioneers of the concept of soft power. Nye, in Taiwan to give a series of talks, said in an exclusive interview with the United Daily News Dec. 7 that Taiwan’s democracy and free markets will help the nation win the recognition of other liberal democracies as well as that of young adults in mainland China. The Economic Cooperation Framework Agreement, signed by Taipei and Beijing in late June, is an instance of soft power that will ensure many benefits for Taiwan, Nye said. Nye, former U.S. Assistant Secretary of Defense, added that arms sales from Washington to Taipei will give Taiwan more bargaining chips in its dealings with mainland China. Even as Taiwan upgrades its self-defense capabilities, it has also been engaged in peaceful cross-strait exchanges with mainland China, Nye noted, saying that such a dual approach is a perfect example of what he means by “smart power.” Nye, who has been called one of the top ten influential scholars in the U.S., said he expected that Taipei and Beijing will move to political talks after economic negotiations are concluded. [Straits] [Softpower]
• China Hints at Unhappiness Over S.Korea-Japan-U.S. Talks
  China has hinted it is unhappy about a statement by the South Korean, U.S. and Japanese foreign ministers in Washington on Monday condemning North Korea's Nov. 23 artillery attack on Yeonpyeong Island and uranium enrichment program and urging China to take on a larger role in constraining Pyongyang.  [China confrontation] [Clash]
• Former president has to stay behind bars for 17.5 years: court
  2010/12/06 13:23:56 Taipei, Dec. 6 (CNA) In a High Court ruling Monday, it was decided that former President Chen Shui-bian's prison term should amount to 17 and a half years. In addition, the court has determined that the fines on Chen, who has been convicted and jailed on corruption charges in two separate cases, would total NT$154 million (US$5.05 million). On Nov. 11, the Supreme Court sentenced the former president to 11 years in prison for taking bribes in a land deal during his time in office and also gave Chen an eight-year sentence in another bribery case. The rulings were the first final convictions in a string of corruption cases implicating Chen and his wife. According to the current law, the Taiwan High Court is authorized to determine whether the combined 19-year sentence should be served concurrently or consecutively. After careful review, a collegial panel at the high court ruled that Chen's total prison time should be 17 and a half years, a court spokesman said. Chen, the first president from the opposition Democratic Progressive Party, began serving his prison sentence at a jail in Taoyuan County Dec. 2, making history as Taiwan's first former head of state to be jailed. His wife Wu Shu-jen has also been given a combined 19-year sentence in the same two bribery cases. Judicial authorities will decide later today how and where the wheelchair-bound former first lady should serve her time. (By Lai Yu-chia and Sofia Wu) enditem /pc [Corruption]
• Why is China losing popularity here?
  By Kim Tae-gyu The U.S. think tank, the Pew Research Center, has found an intriguing trend in its surveys in South Korea. Asked whether they have a favorable or unfavorable view of China, an increasing number of respondents have come up with negative viewpoints over the past decade. Favorable views of China were as high as 66 percent here in 2002 but they headed down to 52 percent in 2007, 48 percent in 2008, 46 percent in 2009 and 38 percent this spring, the fifth lowest among 22 nations researched. By contrast, unfavorable views rocketed during the same period from just 31 percent in 2002 to 42 percent in 2007, 49 percent in 2008, 54 percent in 2009 and 56 percent this year, also the fifth highest among the 22 countries. Adjunct professor Kim Seung-chae at Korea University said that China’s failure to play the role of neutral mediator between the two Koreas explains why the nation’s popularity is tailing off here.   [China confrontation]
• U.S. steps up pressure on China to rein in N. Korea
  By John Pomfret Washington Post Staff Writer Monday, December 6, 2010; 12:48 AM The United States has stepped up diplomatic pressure on China by accusing its leaders of "enabling" North Korea to start a uranium-enrichment program and to launch attacks on South Korea, a senior U.S. administration official said this weekend. In response to the North Korean moves and apparent Chinese acquiescence, Washington is moving to redefine its relationship with South Korea and Japan, potentially creating an anti-China bloc in Northeast Asia that officials say they don't want but may need. In meetings with their Chinese counterparts in Beijing and in Washington since North Korea launched a deadly artillery barrage at a South Korean island on Nov. 23, U.S. officials have charged that China is turning a blind eye to North Korean violations of U.N. Security Council resolutions, international agreements and a 1953 armistice halting the Korean War that China helped to negotiate. The accusations mark a further deterioration of the tone and direction of the U.S. relationship with Asia's emerging giant and come as both countries prepare for a second summit next month between President Obama and his Chinese counterpart, Hu Jintao. [China confrontation] [China NK] [Inversion]
• China-skepticism spreads by leaps and bounds
  Dai Bingguo Chinese State Councillor This is the first in a series of articles about skepticism growing in South Korea about China’s role as a mediating power with North Korea amid a continuing series of problematic events. — ED. By Cho Jin-seo Arrogant and hard to communicate with is how Korea’s vice foreign minister allegedly described his Chinese counterpart at the six-party talks. This is also more or less the way ordinary Koreans are beginning to see China after the country’s ambivalent attitude toward the current inter-Korean conflict. [China confrontation]
• China, the Enabler
  Published: December 2, 2010 What is China thinking? Its client and neighbor North Korea is becoming more belligerent by the week, and Beijing is still playing cynical diplomacy-as-usual. To quickly recap: Last week, the North Korean military shelled a South Korean island — killing two South Korean marines and two civilians. Two weeks before that, the North flaunted a new nuclear fuel plant that could significantly increase its arsenal. Earlier this year, the North torpedoed a South Korean warship, killing 46 sailors. The South has shown remarkable forbearance, but the risk of a wider confrontation grows with each incident. China is the North’s main supplier of food and fuel, but it is refusing to rein in Pyongyang. Beijing said nothing after the North unveiled its uranium plant. After the shelling, it refused to condemn the North. Only after the Pentagon sent warships to join South Korea in military exercises did China bestir itself, calling for a meeting of the six-party players — the two Koreas, China, Russia, Japan and the United States — and exchanging diplomatic visits with Pyongyang.
  China has long made clear that it has only two concerns when it comes to the Korean peninsula: stability on its border and limiting the American presence. Before it’s too late, it needs to realize that an erratic, increasingly aggressive neighbor armed with nuclear weapons is anything but a recipe for stability — or for an American military drawdown. [US NK policy] [China NK] [Strategic incoherence]
• WikiLeaks Cables Expose Seoul's Wishful Thinking About China
  Diplomats are calling on China to abandon its blind support for North Korea following the North's artillery attack on Yeonpyeong Island. China also stood by North Korea after it sank the South Korean Navy corvette Cheonan in March. Until now, South Korea's diplomatic approach to China has been informed by a mixture of hope that Beijing would distance itself from North Korea by and by and understanding of the unique position of the Chinese government in dealing with the two Koreas. A woman in Schwerin, northeastern Germany, looks on the website of WikiLeaks on Tuesday while on the screen at right can be seen a photo of WikiLeaks founder Julian Assange. /AFP-Yonhap U.S. diplomatic cables unveiled by WikiLeaks clearly show how wishful the thinking of South Korean diplomats has been. Earlier this month, Chief Presidential Secretary for Foreign Affairs and Security Chun Young-woo met U.S. Ambassador Kathleen Stephens and quoted Chinese diplomats as saying that Beijing was ready to face the reality that North Korea has almost no value as a buffer country. He told Stephens that China "would be comfortable with a reunified Korea controlled by Seoul and anchored to the U.S. in a 'benign alliance' as long as Korea was not hostile towards China." [China NK] [Self delusion] [Takeover]
• China Reaffirms Its Stance on N.Korean Artillery Attack
  Chinese Foreign Minister Yang Jiechi said on Wednesday that Beijing will not side with either Seoul or Pyongyang on the matter of North Korea's shelling of Yeonpyeong Island, China's state-run news agency Xinhua reported. "As a responsible country, China decides its position based on the merits of each case and does not seek to protect any side," Yang said in a speech at an international forum in Beijing. The statement reiterates China's initial stance that all parties concerned should keep calm and exercise restraint over the situation, despite international pressure on China to rein in North Korea. [Clash] [China NK}
• Lee Stresses Confidence in Relations with China
  President Lee Myung-bak on Wednesday sought to head off mounting public anger here over China's refusal to censure North Korea for its recent artillery attack on Yeongpyeong Island. China also stood by North Korea after it sank the South Korean Navy corvette Cheonan in March. "While there have been reports that our relationship with China is in trouble, I'm confident about our partnership," Lee said in a breakfast meeting with his foreign policy and security advisors at Cheong Wa Dae on Wednesday. "On the North Korean issue, my view is that we and China will work out solutions together." [China SK]
• 'Pressuring N.Korea' rhetoric is self-deceiving
  Source: Global Times [08:11 November 30 2010] Comments South Korea rejected China's proposal for restarting Six-Party Talks. South Koreans are now being misguided by radical emotions. It's true that Six-Party Talks can ease Korean Peninsula tensions, but South Korea first needs to vent its anger. South Koreans are demonstrating almost concordant toughness, which is not normal for the country. South Korea's Ministry of Foreign Affairs and Trade should have the wisdom and insight that is clearly absent among netizens. With an overall national strength much stronger than the North's, and defense assistance from the US, South Korea should be worried less of security issues than the North. The probability of enduring a massive invasion from the North is almost zero. China cannot help vent South Korea's anger, but is sincerely helping ease Peninsula tensions and wants to find ways of defusing the Korean crisis. The South Korean government showed its reluctance to support China by not agreeing to talks. Decision-makers in Seoul probably believe that acting against pragmatic solutions entails much smaller political risks in the short term. Since the US declared its return to Asia, the frequency of clashes in Korea Peninsula has accelerated. Instead of reflecting upon this, South Korea became more obsessed with its military alliance with the US, which has proven faulty at best. Seoul and Washington are seeking to pull Beijing to their side. They think once China gets tough, North Korea will behave - but such logic is quite ludicrous among Chinese. People from the South and the North are one people. South Koreans clearly know about the Korean temperament of sticking to independent choices and being reluctant to succumb to external dissuasion. Isn't Pyongyang's decisiveness in front of orders by external powers also part of South Koreans' national character? Does South Korea really think the North would submit to pressure? The illusion of forcing North Korea to yield has plagued Northeast Asia for years. It stops the region from taking advantage of moments of opportunity to solve the Korean deadlock. There is no simple solution to the complex Korean issue. Saying that China should blockade North Korea to make Pyongyang succumb is not only self-deceiving, it is a humiliation to the entire Korean people. As long as people in this region do not want another war and let blood-and-iron policies reshape Peninsula dynamics, the only pragmatic solution is still to sit down and trade mutual compromise for lasting peninsular peace. [China SK] [Peace effort]
• N. Korea and China exchange diplomatic visits
  Chairman of North Korea’s Supreme People’s Assembly Choe Thae-bok arrived in Beijing Tuesday at the invitation of China’s National People’s Congress Standing Committee Chairman Wu Bangguo, China’s second most powerful leader. Choe’s five-day trip to China, described as an ordinary party-to-party diplomatic exchange, is the first such visit by North Korea’s high-level official since the North unveiled a new uranium enrichment facility and conducted an artillery attack on South Korea. Attentions focus on whether Choe meets with Chinese supreme leader Hu Jintao or Wen Jiabao. Chinese State Councilor Dai Bingguo, who made a lightening visit to South Korea and met with President Lee Myung-bak, reportedly visit North Korea as early as Wednesday, Japanese Kyodo News Agency said Tuesday, quoting diplomatic sources in Beijing. [China NK]
• Whose Core Interest Is It Anyway?
  China Hand Hmmmmmmmmm… From an April 2009 US Embassy Beijing cable in the Wikileaks dump as reported by the Guardian: The United States had its core interests, VFM He asserted, such as U.S. naval vessels that had operated near the Chinese coast. Now, as anybody with a memory more than a nanosecond recollects, in 2010 the world’s press was filled with reports like this one from the April 23, 2010 New York Times: China is also pressing the United States to heed its claims in the region. In March, Chinese officials told two visiting senior Obama administration officials, Jeffrey A. Bader and James B. Steinberg, that China would not tolerate any interference in the South China Sea, now part of China’s “core interest” of sovereignty, said an American official involved in China policy. It was the first time the Chinese labeled the South China Sea a core interest, on par with Taiwan and Tibet, the official said. I should comment that I had previously thought the core interest claim had first surfaced in a July Kyodo News Service dispatch; but there it is. China never publicly declared a “South China Sea = core interest” policy, raising questions about what it had actually said and meant, but the story acquired unstoppable legs through US government backgrounders to Washington journalists and served as the subtext for the whole “US defends freedom of navigation in the South China Sea” story. The Wikileaks cable provides some interesting nuance to the core interest angle. [China confrontation]
• China Urges Dialogue to Resolve Korea Tensions
  China stresses that it believes all parties involved in negotiating the North Korean nuclear crisis should come together to resolve the latest tensions through dialogue. Foreign Ministry spokesman Hong Lei Tuesday told reporters that China wants the latest Korean tensions resolved through negotiations. Hong says China believes it is imperative to bring the issue back to the track of dialogue and consultation as soon as possible. [Peace effort]
• Beijing’s lukewarm approach on NK attack sparks criticism
  By Kang Hyun-kyung “Great power involves great responsibility.” An increasing number of governments are urging China, the world’s second largest economy and decades-long benefactor of North Korea, to use its influence over its troubled neighbor which has committed yet another brutal act of late. [China NK] [China confrontation][China SK]
• China seeks talks to ease Korean tensions
  08:57, November 29, 2010 China called on Sunday for an emergency meeting of the six countries involved in past nuclear negotiations with Pyongyang, to discuss and resolve heightened tensions on the Korean Peninsula arising from the exchange of artillery fires between the two Koreas on November 23. As the United States and its ally South Korea has launched a large-scale navel exercises in the Yellow Sea, West of the peninsula and Pyongyang has vowed to retaliate, the dangers are high that a flare-up of the already tense situation could lead to a full-blown war. "After careful considerations, China proposes emergency meetings among the heads of delegations to the Six-party Talks, to be held in early December in Beijing," said Wu Dawei, Chinese Vice Foreign Minister and special envoy for Korean Peninsula affairs. Last week, China's Premier Wen Jiabao urged the two Koreas and relevant parties involved in the crisis to exercise utmost restraint, and made public China's stance that Beijing is firmly opposed to any military provocations that would escalate the crisis on the peninsula. To show the allies' military force, the U.S. Navy and South Korea armed forces launched a 4-day joint naval drill beginning Sunday, with the US nuclear-powered aircraft carrier USS George Washington jointing the war games. North Korea has vowed to fight back. Pyongyang said Saturday that it will deal "a merciless military counter-attack" at any provocative act of intrusion into its territorial waters, according to the official Rodong Sinmun. South Korea has been "lukewarm" to China's latest call for a resumption of six-party talks, said a report by The New York Times on Sunday. A South Korea foreign ministry statement suggested that "the timing was not yet right for such a meeting", and China's proposal for emergency consultations "should be examined very carefully." Japan will closely coordinate with Seoul and Washington in its response to China's proposal, Deputy Chief Cabinet Secretary Tetsuro Fukuyama told reporters in Tokyo. A spokesman for the US 7th Fleet in the Pacific said no live-fire drills were planned. Officials would not supply exact locations but Yonhap news agency in the ROK said the drills were taking place about 160 kilometers south of Yeonpyeong island, the scene of last week's artillery barrage by North Korea. The South Korea Defense Ministry told journalists to leave the island on Sunday because the situation was "bad". Many residents, evacuated earlier, said they did not want to return. The North Korea on Sunday blasted the exercises, saying they were bringing war to the Korean Peninsula. Meanwhile in Seoul, China's State Councilor Dai Bingguo met with ROK President Lee Myung-bak on Sunday. Stressing the situation on the peninsula was worrisome, the two sides agreed the parties concerned should make joint efforts to engage in serious contact and dialogue to ease tensions and safeguard overall peace and stability on the Korean Peninsula and Northeast Asia. Dai arrived in Seoul on Saturday and discussed the situation on the Korean Peninsula with ROK Foreign Minister Kim Sung-hwan. On Saturday, Foreign Minister Yang Jiechi also discussed the situation with his Japanese counterpart Seiji Maehara and Russian counterpart Sergei Lavrov on the phone. Choe Tae-bok, chairman of the Supreme People's Assembly of the DPRK, will pay an official visit to China from Tuesday until Saturday, Xinhua reported. By People's Daily Online [Clash] [Peace efforts] [US joint military]
• Chinese in Series of Diplomatic Gaffes in Seoul
  A Chinese delegation led by Dai Bingguo, the Chinese state councilor in charge of foreign affairs who visited South Korea on Nov. 27 and met with President Lee Myung-bak to discuss North Korea's attack on Yeonpyeong Island, has become the talk of the town among diplomats in Seoul. A diplomatic source in Seoul on Monday said the Chinese suddenly notified the South Korean Foreign Ministry at 3 p.m. on Nov. 27 that a delegation led by Dai will leave in 15 minutes and hopes to land at Seoul Airport. The airport in Seongnam, Gyeonggi Province, is an air force base, and is used for non-military purposes only when heads of state visit the country. As soon as the delegation arrived, they asked the Foreign Ministry to arrange an audience with Lee the same day, without clearly stating the purpose of the meeting. One source said, "It is against diplomatic protocol to request a meeting with a head of state in such a manner." China also asked for the meeting with Lee to be confidential. "But then Dai and his delegation brought five reporters and TV cameraman when they turned up at Cheong Wa Dae," another source said, "so Cheong Wa Dae urgently called the South Korean media in." China initially wanted Dai's visit to remain confidential, but Seoul refused, saying the request is inappropriate in this situation. Dai reportedly gave a tedious hour-long talk on the history of relations between South Korea and China, which offended Lee. Then when Dai called for resumption of six-party nuclear talks, Lee did not say a word. One diplomat said, "After the meeting, Dai out of blue requested a one-on-one meeting with Lee, and said something to Lee while they talked for a moment. Perhaps he was informing Lee of an 'important announcement' China had announced before delivering it later that afternoon, but until that time no mention was made of it. Simply put, the Chinese delegation committed a series of incomprehensible blunders from start to finish." [China confrontation]
• Cold War alliances reborn with regional tension
  Experts say authority to resolve the situation has been effectively ceded to China and the United States
  By Yi Yong-in, Staff Writer A “three against three” framework with South Korea, the United States and Japan on one side and North Korea, China, and Russia on the other is showing signs of taking shape once again. This transpired following China’s urgent proposal Sunday for discussions among senior representatives to the six-party talks on the North Korean nuclear issue. Observers say the “New Cold War” framework in Northeast Asia that began to show itself with the arrival of the Lee Myung-bak administration and its prioritization of the South Korea-U.S. alliance, and deepened in the wake of the Cheonan’s sinking, was reaffirmed following North Korea’s artillery attack on Yeonpyeong Island. Following South Korea’s rejection of the Chinese proposal Sunday to convene emergency six-party talks, the United States has also expressed an effective refusal. U.S. news outlets reported that Philip Crowley, U.S. assistant secretary of state for public affairs, said Sunday (local time) that the United States would engage in discussions with the nations taking part in the talks, including South Korea and Japan, but that China first has to deter provocations from North Korea. In effect, Crowley emphasized that “responding to North Korea” is a greater priority than “resuming the six-party talks” at the present time. [Capture] [China NK] [China confrontation]

• N.Korea, China to Exchange Visits After Yeonpyeong Attack
  Beijing and Pyongyang seem to be expediting mutual visits in a bid to facilitate coordination in dealing with North Korea's artillery attack on Yeonpyeong Island in the West Sea last Tuesday. Choe Thae-bok, the chairman of the North's Supreme People's Assembly and secretary of the Workers Party's Central Committee, will visit China Tuesday, and a Chinese official is apparently to visit the North soon.  
• Lee administration rejects six-party talks proposal
  Analysts say the administration would like a cooling period and a change in stance from N.Korea before agreeing to talks              » President Lee Myung-bak, left, greets Chinese State Counselor Dai Bingguo, right, at the Cheong Wa Dae, Nov. 28. (Cheong Wa Dae photo pool)        By Hwang Joon bum and Park Min-hee, Beijing Correspondent President Lee Myung-bak on Monday strongly condemned North Korea’s recent artillery attack on the Yeonpyeong Island near the border, calling it an “inhumane crime.” “A military attack on civilians is a crime against humanity strictly prohibited even during a war,” Lee said in a televised speech to South Korean people. Lee said, “(South Korea) will make North Korea pay the due price by all means for its provocation from now on.” He appealed to the South Korean people for unity, while offering a public apology for security loopholes and the sloppy response. The Lee government also effectively rejected an abrupt proposal from China on Sunday to hold emergency discussions early next month among senior representatives for the six-party talks on the North Korea nuclear issue. On Saturday, State Councilor Dai Bingguo was sent to South Korea with the effective status of special envoy for Chinese President Hu Jintao.  [Six Party Talks]
• S Korean president meets with Chinese State Councilor
  Source: Xinhua [14:42 November 28 2010] Comments South Korean President Lee Myung-bak on Sunday met with visiting Chinese State Councilor Dai Bingguo in Seoul's presidential office Cheong Wa Dae. Dai first conveyed the cordial greetings from Chinese President Hu Jintao and Premier Wen Jiabao to Lee, while Lee also asked Dai to convey his sincere regards to his Chinese counterpart Hu and Premier Wen. In the prolonged meeting, the two sides exchanged views on current situation on the Korean Peninsula and relationship between Beijing and Seoul in an in-depth and frank manner. Stressing that the current situation on the peninsula is worrisome, the two sides agreed that the parties concerned should make joint efforts to engage in serious contacts and dialogue to ease the tensions and safeguard overall interest of peace and stability on the Korean Peninsula and in the whole Northeast Asia.
• China must push North Korea harder: U.S. military chief
  Posted on 26 November 2010 by admin Print This Post « « Asia: Region-Wide Arms Race Is UnderwayChina is treading on dangerous ground » » This Story Page List: 1 2 2010-11-27 (China Military News cited from Reuters and written by Phil Stewart) -- The top U.S. military officer called on China to intensify pressure on North Korea and focus on leader Kim Jong-il's "vulnerabilities," saying that Beijing was wrong if it thought he was "controllable." China has said it is determined to prevent an escalation of this week's violence on the Korean peninsula after North Korea shelled a South Korean island, the heaviest bombardment since the 1950-53 Korean War. But Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, said in comments released on Friday that North Korea's nuclear ambitions increase the threat of regional instability. "It's hard to know why China doesn't push harder," Mullen, told CNN television's Fareed Zakaria GPS, in comments due to air on Sunday. "My sense is they try to control this guy. And I'm not sure he is controllable." He added: "I think we all have to focus on getting his attention -- but in particular, China, in terms of focusing on his vulnerabilities and making sure that that part of the world doesn't come undone." CNN released a transcript of the interview, recorded on November 24. [China NK]
• Anti-Chinese sentiment boiling under surface
  By Kim Tae-gyu Anti-Chinese sentiment has begun simmering under the surface in South Korea after the world’s second largest economy appears to be taking sides with North Korea in the aftermath of a deadly attack earlier this week. Pyongyang admitted to firing over a hundred shells at the South Korean island of Yeonpyeong, Tuesday, which killed two marines and two civilians — more than a dozen others were injured in the attack. Seoul asked Beijing, which has a big influence on the North, to play a role in criticizing North Korean leader Kim Jong-il, but to little avail. China just said the two nations should remain cool and hold talks. Worse, China caused a public uproar after its Foreign Minister Yang Jiechi postponed indefinitely his planned visit to Seoul on Friday, while lashing out at a South Korea-U.S. military exercise in the West Sea.
• China Addresses Rising Korean Tensions
  In a statement from its Foreign Ministry, China warned against “any military acts in our exclusive economic zone without permission,” the state-run Xinhua news agency reported Friday. But virtually all the waters to the west of the Korean Peninsula, where the United States said the exercises would take place, lie within that zone, and American naval traffic is far from uncommon there. [Clash] [Joint US military] [China confrontation]
• Getting China to rein in North Korea
  Friday, November 26, 2010; 9:32 PM Regarding former president Jimmy Carter's Nov. 24 op-ed, "Listen to North Korea": Mr. Carter did not mention the giant panda in the room. Without convincing China that its continued unconditional support of North Korea will only harm its long-term strategic interests, any "diplomatic niceties" the United States might initiate will be for naught. Despite Mr. Carter's assertions of Pyongyang's credo of "juche," or self-reliance, China's influence on North Korea is not trivial. For six decades, Pyongyang has proved itself an irrational actor that cannot be trusted to behave in accordance with the laws of nations. Our real challenge will be persuading China to temper North Korea sooner rather than later. Jared Graham, Savannah, Ga. [Bizarre]
• China Stays Firmly on Fence Over N.Korean Attack
  China's response to North Korea's shelling of South Korea's Yeonpyeong Island so far has been very similar to the position it took on the North's sinking of the Navy corvette Cheonan in March. After expressing condolences to the victims and urging the two Koreas to remain calm, it tries to gloss over the cause of the incident. Chinese Premier Wen Jiabao, currently in Russia, on Wednesday said he opposes any form of military provocation and urged "the countries involved" to exercise "maximum restraint" and work towards resuming six-party nuclear talks. [Clash]
• Chinese Foreign Minister Cancels Visit to Seoul
  China's Foreign Minister Yang Jiechi has postponed indefinitely a planned visit to Seoul on Friday. The South Korean Foreign Ministry says Beijing informed it of the cancellation late Wednesday through the Korean Embassy there, asking for Seoul's understanding of the decision. Although China cited scheduling reasons, the move is seen as a sign of caution from North Korea's long-time ally in the aftermath of Pyongyang's deadly artillery attack on Yeonpyeong Island on Tuesday. Beijing and Seoul plan to reschedule Minister Yang's visit for the near future.
• From swords & guns to plowshares & noodles
  Source: Global Times [08:18 November 26 2010] Comments Wei Zhongming, 21, pulls noodles at his restaurant on Chengdu Beilu in Shanghai. "The skills of gun making have not been handed down from my father's generation," says Wei, of Hualong county in Qinghai Province. "Making noodles is now the only and easiest choice to make a living for most young people from my hometown." Photos: Cai Xianmin By Liu Dong Few know the sensitive, exotic and violent secrets of the successful noodle chain that is Lanzhou Lamian, or "Chinese KFC" to its many millions of fans across the nation. The Ministry of Commerce hailed Lanzhou Lamian in 1999 as one of three fast foods most likely to succeed as a national franchise and since then, the noodle chain has apparently never looked back. Although popular throughout northwestern China as early as the Tang Dynasty (618-907), the modern Muslim-style beef noodles were created by Ma Baozi in 1915, according to the Lanzhou Commerce Bureau's introduction on its official website. "Nowadays Lanzhou Lamian restaurants can be found in every corner of the country," Kou Zongze, director of the food and beverage service department at Lanzhou Commerce Bureau told the Xinhua News Agency. The oddest fact about Lanzhou hand-pulled noodles is they don't actually come from Lanzhou, according to Ma Zhongyuan, director of the Hualong liaison office in Shanghai. More than 90 percent of Lanzhou Lamian restaurants can trace their origins to the approximate 232,500 residents of a poor, remote, 79-percent- Muslim county 259 kilometers' drive from Lanzhou, the capital city of Gansu Province.
• A test of tolerance over the Korean Peninsula
  Source: Global Times [08:13 November 26 2010] Comments After the recent artillery exchange on the Korean Peninsula, North Korea seems to be the only country that gained, but Pyongyang is drinking poison to curb its thirst. It is running head long down a road that leads to nowhere. Is the Korean Peninsula heading toward a dangerous dead end? Stability is a shared goal of all the countries involved. North Korea wishes to maintain a stable government; the South would like to see a stable border area. It is in the interest of China to keep an uneventful situation on the Peninsula, and the US hopes to see its influence in Northeast Asia unchallenged. Japan and Russia hold attitudes similar to China's or the US'. However, this shared goal is often interrupted by other interests, primarily, the pursuit of nuclear weapons by the North and its continuous provocation. In addition, the inconsistent policies of the US and South Korea toward Pyongyang also cause the North agitation, which in turn tends to overreact.
• Following announcement of joint exercises, China postpones diplomat’s visit
  Analysts say China may have wished to avoid increasing pressure from the international community to contain N.Korea » Chinese Prime Minister Wen Jiabo, right, is greeted by Tajik Prime Minister Oqil Oqilov, left, as he arrives at the airport of Tajikistan’s capital city of Dushanbe to attend the Shanghai Cooperation Organization’s meeting of prime ministers, Nov. 24 (local time) (Xinhua Yonhap) By Park Min-hee, Beijing Correspondent A South Korea visit by Chinese Foreign Minister Yang Jiechi that was originally scheduled for Friday and Saturday was abruptly postponed Wednesday night. A South Korean Ministry of Foreign Affairs and Trade official said Thursday that the China contacted the South Korean Embassy in China at 11:40 p.m. on Wednesday. “They said [the visit] had been unavoidably delayed because of scheduling reasons, and they respectfully asked for our understanding,” the official explained. But analysts have said the notice was effectively a cancellation, given that it came just two days ahead of the visit and was given immediately after South Korea and the United States announced their joint military exercises in the West Sea. China’s decision to postpone Yang’s visit, despite the possibility that it may appear a breach of diplomatic etiquette, has been interpreted as an indirect expression of displeasure with the exercises. Chinese foreign ministers have rarely cancelled a South Korea visit immediately beforehand without giving a clear reason.
• ROC condemns North Korean artillery attack
  MOFA Minister Timothy Chin-tien Yang condemns North Korea’s provocative shelling of South Korea during a Nov. 23 media conference in Taipei City. (CNA)•Publication Date:11/24/2010 •Source: Taiwan Today •By Elaine Hou The ROC Ministry of Foreign Affairs has condemned North Korea’s shelling of its southern neighbor, stating that the action has intensified the military situation on the divided peninsula. “We strongly denounce North Korea’s provocative act and extend our condolence and sympathies to the families of the South Korean dead and injured,” MOFA Minister Timothy Chin-tien Yang said Nov. 23. [Clash] [Inversion]
• China Avoids Comment on N.Korean Artillery Attack
  The Chinese government on Tuesday avoided direct comment on North Korea's artillery attack on the South Korean island of Yeonpyeong and instead called on Seoul to do more for peace and urged a resumption of six-party nuclear talks. It also had no comment on North Korea's uranium enrichment program. Asked in a press briefing about China's position on the North's unveiling of the uranium facility, Chinese Foreign Ministry spokesman Hong Lei said China has "taken note of related reports." He added Beijing's consistent policy is to realize denuclearization of the Korean Peninsula through dialogue. He urged resumption of the six-party talks as soon as possible. "It is necessary to properly handle concerns of each country through dialogue within the framework of the six-party talks," he said. Commenting on the artillery attack, he said Beijing is "concerned" but added, "The real situation needs to be confirmed." He expressed hope that the two Koreas will do "things conducive to peace and stability in the Korean Peninsula." Hong added that consistent pursuit of the six-party process and the implementation of "all goals" set by a statement of principles of September 2005 will serve the interests of all countries involved. [Clash]
• China must exert influence on Korea
  Evening Standard comment 23.11.10 Given North Korea's shelling of a South Korean island close to its territory today, it is sobering to reflect that technically the two Koreas are still at war. The Korean conflict ended merely with a truce in 1953. But it would be premature to see this latest act of aggression by the North - after its sinking of a South Korean vessel in March - as evidence of a desire to return to all-out war. To the extent to which the mentality of this reclusive state is readable, it has to be seen in the context of its ailing leader, Kim Jong-il, and his desire to pass power to his youngest son. It is at least possible that the shelling, on the disputed border, is intended to make the succession attractive to the military. But it is equally intelligible as a bizarre attempt at attention-seeking by the North, which only recently went out of its way to show an academic from a US university its facilities for enriching uranium, ostensibly for generating energy for civil purposes. North Korea wants a resumption of six-way talks between the regional powers, including the US and China, about its nuclear programme and its leaders may believe that a demonstration of strength, nuclear and military, can achieve it. The moves have, however, played predictably (sic) badly with the US. [NK US policy] [Media] [Bizarre] [Clash] [Inversion]
• China’s rise and the future of China-Korea relations
  By Park Myeong-lim, Professor of Political Science, Yonsei University I received a strong protest from a reader on a previous column regarding humanization. He rebuked me for not discussing the controversy surrounding a comment by Chinese Vice President Xi Jinping on the 60th anniversary of China’s intervention in the Korean War, and that I should discuss the matter based on historical facts.
• China Keeps Mum on N.Korean Uranium Shock
  China has yet to respond officially to news that North Korea showed a large uranium enrichment facility to a visiting U.S. expert. The Chinese state media are also keeping mum, with China Central Television and the Xinhua news agency only briefly reporting on Monday morning that Stephen Bosworth, U.S. special representative for North Korea policy, is on an urgent trip to South Korea, China and Japan. Diplomats in Beijing speculate that North Korea failed to inform China that it was building the facility. "We don't know whether North Korea notified China of its uranium enrichment program beforehand," a diplomat said. "But looking at delayed response from China, it's unlikely."
• China: Already on Top?
  By John Feffer, November 23, 2010 "The Communists have taken over the World Bank!" So far, this phrase hasn't appeared on Glenn Beck's infamous chalkboard. I'm still waiting for Beck or Rush Limbaugh to make a big stink that the World Bank's chief economist is from Mainland China. Justin Yifu Lin has been in his position for more than two years and the right-wing crazies have been largely silent. Maybe they're too busy attacking their fantasy version of President Barack Obama – the Muslim/elitist/socialist-in-chief – to pay much attention to what's going on in the real world. Of course, Justin Yifu Lin is not your typical communist. Born in Taiwan, he was an outspoken nationalist in his student days. That was before he defected to the Mainland in 1979. In the 1980s, he earned his PhD in economics from the University of China and then studied at Yale. On his return with the first such degree granted to a Chinese national since the Cultural Revolution, he was instrumental in guiding the market transformation of the Chinese economy. Now he's based in Washington, DC, where he's applying his experiences to transitional economies around the world. Lin is an advocate of China's "tinkering gradualist approach." He has criticized the IMF's shock therapy approach as "shock without therapy." And he's agnostic about what kind of government is best for implementing economic reform. "I think that we do not know what kind of governance structure is the best in the world," he told Evan Osnos of The New Yorker. "If you look into Japan, and also Germany and the U.S., they are all so different.
  Conflict in Korea North Korea, according to news reports, shelled a South Korean island today, and South Korea responded with 80 shells of its own. Prior to the attack, South Korea conducted a test firing near the North Korean coast, but denies that any shells passed over the disputed maritime border. However, the risk of mistakes – and misperceptions – in such a contested area is very high. [China rising] [SK NK policy] [Buildup] [Conflict]
• Taiwan concerned about incident on Korean Peninsula
  2010/11/23 22:24:14 Taipei, Nov. 23 (CNA) Taiwan is concerned about the situation on the Korean Peninsula after North and South Korean troops exchanged fire across the border earlier Tuesday. North Korean fired two rounds towards a frontline unit and South Korean soldiers returned fire three times. The shooting occurred in Yeonpyeong islet, some 90km (56 miles) north-east [Conflict]
• A Nettlesome Neighbor for China
  By IAN JOHNSON and MICHAEL WINES Published: November 23, 2010 BEIJING — North Korea’s unending appetite for confrontation has left many wondering what its bottom line is, none more so than its supposed patron and big brother, China. Despite its impoverishment and heavy dependence on Chinese aid and support, North Korea seems to take a perverse pleasure in defying every Chinese diplomatic initiative, from efforts to keep the Korean peninsula nuclear free to avoiding violent confrontation. China’s influence is rising steadily around the world. But the problem of how to manage its Communist neighbor and one-time ally appears to befuddle China’s leaders, who stumble from indulging the North to sending occasional signals of pique, all without making the country adopt a path toward greater openness or stability. [China NK]
• Korea's Growth Largely Due to Exports to China
  More than half of Korea's economic growth since the financial crisis is due to its exports to China. In a report published on Monday, the Korea Institute for Industrial Economics said Korea's GDP stood at W504 trillion (US$1=W1,127) in the first half of 2010, up 4.2 percent from the same period in 2008. Out of the total W20 trillion increase, W10.4 trillion or about 52 percent was due to an increase in the volume of net exports to China. Korea's growth would have been cut in half if exports to China had stagnated, the think tank speculated. In the first half of this year, the country's gross [China rising]
• N.Korea's alleged nuke progress causes alarm
  Source: Global Times [08:05 November 23 2010] Comments By Liu Linlin Revelations about North Korea's latest uranium-enrichment program point at the country seeking more bargaining chips ahead of any resumption of international talks on denuclearization, analysts suggested Monday. The New York Times reported that Pyongyang gave US nuclear scientist Siegfried Hecker a tour of a vast, new plant to enrich uranium with "hundreds and hundreds" of centrifuges installed. Hecker, the former director of the Los Alamos National Laboratory, concluded after his trip that the North had been building its nuclear facility in secret and at remarkable speed. In his report, Hecker described that he was left stunned at the sophistication of the "industrial-scale uranium-enrichment facility with 2,000 centrifuges," according to the newspaper. However, Pyongyang did not comment on the report.
  Lü Chao, director of the Center of South Korea studies at the Liaoning Academy of Social Sciences, told the Global Times that these claims concerning new nuclear facilities were calculated to push Washington into returning to talks with Pyongyang. "It seems to be an open secret that North Korea has been accelerating construction of its nuclear facilities. North Korea is letting the US know that should it maintain its tough approach, denuclearization will not be possible," Lü said, adding that it was time for the US to reconsider its North Korea policy. Zhang Liangui, a professor of international strategic research at the Party School of the CPC Central Committee, said, "North Korea has set its own agenda with regards to the pace of international denuclear-ization talks." "It hopes the world can eventually accept it as a powerful nuclear state," he said. Zhang urged the North to honor its denuclearization commitments made during the previous Six-Party, Talks and stressed that China should avoid being taken advantage of by its neighbor. Shen Dingli, at the Institute of International Studies of Fudan University, told the Global Times Monday that this latest move by North Korea was to raise the stakes for the resumption of the Six-Party Talks, which Shen believes Pyongyang does not wish to restart. "Pyongyang should adhere to its promise to abandon its nuclear ambitions, and serve as a responsible stakeholder in the region," he said [Double standards] [China NK] [MISCOM]
• Time to end the myth of currency wars
  By Jim O’Neill Published: November 21 2010 20:25 | Last updated: November 21 2010 20:25 In recent weeks, the phrase “currency war” has been used liberally. Let us hope this is a passing fad: it is inappropriate, and actually a fiction. In truth there are no real currency wars, just normal currency markets responding to events. Let us review the facts. The Chinese currency has risen by about 20 per cent against the US dollar in the past five years. About a tenth of this appreciation has happened since this summer. On a trade-weighted basis the renminbi has risen by about 14 per cent over the same time. Whichever measure you use this is quite a move, and one with powerful consequences. - Nov-19.Money Supply: PBoC raises reserve ratio 50bp - Nov-19.. For those minded to look, there is plenty of evidence that China’s economy is already changing for the better . [Domestic demand]
• US asks China to curb nuclear plans of North Korea
  By Daniel Dombey in Washington Published: November 21 2010 19:40 | Last updated: November 21 2010 19:40 The US has urged China to help rein in North Korea’s nuclear programme after reports that Pyongyang has built an extensive uranium enrichment facility which could add to the country’s stock of atomic weapons material. Barack Obama, the US president, has sent Stephen Bosworth, his special envoy for North Korea, to Seoul, Tokyo and Beijing in the wake of Pyongyang’s claim that it has built a facility with two thousand centrifuges to enrich uranium. The process can yield both nuclear fuel and fissile material for weapons. The response from South Korean atomic negotiators was muted. They said they had no idea how far Pyongyang’s nuclear scientists had got or where they might be running their experiments.
  Admiral Mike Mullen, chairman of the US joint chiefs of staff, said: “We have to continue to bring pressure on [Kim Jong-il, the North Korean dictator].” He described North Korea as a “very dangerous country” led by an unpredictable leader who had once again managed to destabilise the region. “A great part of this, I think, will have to be done through Beijing,” he added [Inversion] [Cliché] .
• Chinese reporter at G20 steals show and slammed
  By Sunny Lee BEIJING ? Rui Chenggang, a reporter with China’s state-controlled CCTV, went to Seoul to cover the G20 summit and became a news story himself due to his controversial remarks. “I think I get to represent all of Asia,” Rui told President Barak Obama during a press conference last week, in an exchange with the American head of state, who said he would answer a final question from the press of Korea, the host. Rui raised his hand and Obama thought he was Korean. “Unfortunately, I hate to disappoint you, President Obama, I'm actually Chinese,” Rui said. [China confrontation] [Resurgence]
• US Embassy: Beijing Air Quality Is 'Crazy Bad'
  By THE ASSOCIATED PRESS Published: November 19, 2010 BEIJING (AP) — Air pollution in Beijing was so bad Friday that the U.S. Embassy, which has been independently monitoring air quality, ran out of conventional adjectives to describe it, at one point saying it was "crazy bad." The embassy later deleted the phrase, saying it was an "incorrect" description and adding that it was working to revise the language to use when the air quality index goes above its highest point of 500, which means the air is considered hazardous for all people by U.S. standards. The hazardous haze has forced schools to stop outdoor exercises, and health experts asked residents, especially those with respiratory problems, the elderly and children, to stay indoors. [China confrontation] [Media]
• Train Makers Rail Against China's High-Speed Designs
  By NORIHIKO SHIROUZU QINGDAO, China—When the Japanese and European companies that pioneered high-speed rail agreed to build trains for China, they thought they'd be getting access to a booming new market, billions of dollars worth of contracts and the cachet of creating the most ambitious rapid rail system in history. China's Route for High-Speed Rail What they didn't count on was having to compete with Chinese firms who adapted their technology and turned it against them just a few years later. Today, Chinese rail companies that were once junior partners with the likes of Kawasaki Heavy Industries Ltd., Siemens AG, Alstom SA and Bombardier Inc. are vying against them in the burgeoning global market for super-fast train systems. From the U.S. to Saudi Arabia to Brazil and in China itself, Chinese companies are selling trains that in most cases are faster than those offered by their foreign rivals. On a recent visit to China, California Gov. Arnold Schwarzenegger said he is interested in Chinese help to build a planned high-speed line in his state. The progression of China's rail business reflects a national economic strategy of boosting state-owned firms and obtaining advanced technology, even at the expense of foreign partners. It's an approach that is challenging the U.S. and other powers, and fueling a broader angst among multinational firms doing business here. Read more: http://online.wsj.com/article/SB10001424052748704814204575507353221141616.html#ixzz 15fyiJurf [China competition] [Technology transfer] [Railways]
• Re-enter the dragon
  By Peter Lee China's first good stretch of foreign affairs news in several months was capped by a climb-down by Japan - and an endorsement by billionaire financier and philanthropist George Soros. Soros, who has devoted much of his fortune to promoting the replacement of single- party authoritarian regimes like China's with multi-party democratic governments, used the occasion of accepting the award of "Globalist of the Year" in Toronto to address the current state of play in China. According to the Globe and Mail: Mr Soros even went so far as to say that at times China wields more power than the US because of the political gridlock in Washington. "Today China has not only a more vigorous economy, but actually a better functioning government than the United States." [1] The immediate occasion for Soros' reflections was the depressing character of the US mid-term elections - literally depressing, in that the hopes of the US and world economy for further American economic stimulus were dashed by the resounding setback to the political fortunes of President Barack Obama and the Democratic Party. [China rising] [Decline] [Incompetence]
• Plans to Boost China Diplomacy Take Shape
  The Foreign Ministry plans to create an association aimed at bolstering friendship and cooperation with China. The move comes on top of a decision to expand the China department in the ministry as part of its efforts to strengthen diplomacy with the Asian power. The association, which will consist of both public servants and civilians, is to help organize Korean investment in China. The ministry is currently discussing the matter with the Office of the Prime Minister.
• How to chart a course out of the Sino-American storm
  By Martin Wolf Published: November 16 2010 22:25 | Last updated: November 16 2010 22:25 They came; they saw; they lost. That is the reaction to what emerged on global rebalancing at the summit meeting of the Group of 20 leading countries in Seoul last week. Publicly, surplus countries persist in calling on those in deficit to deflate themselves into economic health. The consequences of this folly are now evident in the eurozone. At the world level, the US will never accept it. But, beneath the radar, something more productive may be emerging . [China confrontation] [Currency]
• Talk of volcano eruption on Changbai Mountain stirs up residents
  Source: Global Times [08:19 November 17 2010] Comments By Pan Yan Scientists in China say that the Tianchi volcano in Changbai Mountain in Jilin Province, which sits near China's border with North Korea, is not likely to erupt anytime soon as some believe. However, that's not stopping the public from panicking about the potential of ash and fire spilling into their homes. Some residents in the area believe unsubstantiated claims that the volcano would erupt anytime in the next few years, Changchun Evening News reported Tuesday.
• China's first home-grown jetliner gets very first batch of orders
  Source: Global Times [13:59 November 16 2010] Comments A total of 100 orders, from home and abroad, were placed to the maker of China's first home-grown jetliner C919, the Commercial Aircraft Corporation of China (COMAC), at the Zhuhai Airshow Tuesday, according to a release by the company. The customers, all giants in the industry like Air China Ltd., China Southern Airlines Co., China Eastern Airlines Corp., HNA Group Co. and CDB Leasing Co., and GE Capital Aviation Services all helped COMAC to secure its very first batch of customers and orders. "The confirmation from the original launch customers creates a market foundation for the C919 large passenger plane which is smoothly moving from the research and development stage into the build stage," said Zhang Qingwei, chairman of the COMAC. The company plans to finish the primary design of the jet by 2010; the detailed design by 2012; first test flight by 2014 and make it operational by 2016. The 150-seat C919 is a prospective competitor to the Boeing 737 and Airbus A320, particularly in the Chinese market, according to the media reports.
• Pakistan heads down China road
  By Syed Saleem Shahzad ISLAMABAD - Pakistani President Asif Ali Zardari has visited China on several occasions since taking office in September 2008, but these visits have been more ceremonial than of substance, in part because his Washington-backed government had gravitated so close to the United States orbit that even the Chinese envoy in Islamabad publicly complained. The Pakistani military establishment's pro-China lobby, highly influenced by now retired General Tariq Majeed, frowned on this tilt towards the US, and was especially upset that the Americans were allowed to establsh a naval base in Ormara in Balochistan province, and that US defense contractors were given a free rein in the country. However, the post-Pervez Musharraf-era army was weak and didn't have much choice except to turn a blind eye. This situation continued until 2009, by which time the army had regained its influence in the corridors of power and had begun to prevail over the country's decision-making process. Hence, Zardari's scheduled visit to China on November 11 takes on a special significance. Notably, he has not sought the counsel of his pro-US envoy in Washington, Husain Haqqani, who has consistently advised Zardari to keep his distance from Beijing. Instead, the president on Monday held a long meeting with Chief of Army Staff General Ashfaq Parvez Kiani. Zardari will attend the opening ceremony of the 16th Asian Games in Guangzhou, as well as meet with his counterpart Hu Jintao and senior officials. On the surface, the leaders will discuss the Washington-opposed plan for a fifth Chinese-built nuclear reactor in Pakistan. However, the underlying emphasis will be on new moves on the grand chessboard of South Asia. [China confrontation]
• Taiwan envoy, Chinese leader meet on APEC summit sidelines
  2010/11/13 13:12:05 Yokohama, Nov. 13 (CNA) Lien Chan, Taiwan's presidential envoy to the Asia Pacific Economic Cooperation (APEC) leadership summit, met Chinese President Hu Jintao Saturday, with the two hailing a landmark cross-Taiwan Strait trade deal and exchanging views on issues of mutual concern. [Straits]
• Taiwan maintaining non-partisan contact in U.S. Congress: MOFA
  2010/11/04 18:50:31 Taipei, Nov. 4 (CNA) Taiwan has been maintaining non-partisan contact in the United States Congress and believes it can sustain support for arms sales to Taiwan, a Ministry of Foreign Affairs (MOFA) official said Thursday following the Republican Party's gains in the U.S. midterm elections. "The U.S. Congress has always been supportive of arms sales to Taiwan. We have been in close contact with Congressmen from both the Republican and Democratic parties, and we don't think the support (for arms sales) will just go away, " said Bruce J.D. Linghu, director-general [Arms sales] [Double standards]
• 'N.K. premier in China for economic ties'
  2010-11-04 10:50 Voiceware Text [Weird World] Charity calendar, Kerr's nude pose, Inaction over gang-rape, Kim lifts Korea‘s fifth judo gold medal Korea may join talks on Asia-Pacific free trade APEC leaders back growth, free trade Park sets Asian record, gives Korea 1st pool gold Sonata makes U.S. bestsellers list Bringing Bangkok back from brink Seongnam defeat Zob Ahan in ACL final Obama to Medvedev: START vote is top priority China to seek domestic growth, FX reform: Hu SHENYANG, China -- North Korea’s premier is visiting northeastern China to meet with ranking officials there and speed up joint economic projects between the communist allies, sources here said Wednesday. Choe Yong-rim arrived in the city of Harbin in Heilongjiang Province earlier this week and visited the city of Changchun in a nearby province on Wednesday, the diplomatic sources said. Choe, promoted by North Korean leader Kim Jong-il at a parliamentary convention in June, is seen as trying to consolidate the ties between Pyongyang and Beijing as the two countries seek to develop a joint economic bloc that draws from resources in China.
• DPRK Premier Tours Liaoning Province
  Pyongyang, November 8 (KCNA) -- DPRK Premier Choe Yong Rim, member of the Presidium of the Political Bureau of the Central Committee of the Workers' Party of Korea, and his party, on an unofficial working visit to Northeast China, visited various places in Shenyang City and Dalian City, Liaoning Province,. They paid visits to the Shenyang Blower Co., Ltd., the Dalian Locomotive Production Company, the Dalian Bingshan Group, the Liaoning Fishery Group, an ancient historic site Beiling Park and other places which General Secretary Kim Jong Il had visited last May. Meanwhile, Choe Yong Rim met and had a friendly talk with Wang Min, secretary of the Liaoning Provincial Committee of the Communist Party of China, and Chen Zhenggao, governor of the Liaoning Provincial People's Government. While staying there the premier and his party were entertained to the banquets jointly given by the Liaoning Provincial Committee of the CPC and the Liaoning Provincial People's Government, the Shenyang City Committee and the Dalian City Committee of the CPC and the relevant people's governments.[Northeast]
• How Baidu Won China
  Robin Li beat Google and made his search engine No. 1 in China. Now he wants to go global, but it will take some work to get the world to trust Baidu Li gets prepped for his speech at the annual Baidu World conference in Beijing Andrew Rowat By Brad Stone and Bruce Einhorn This Issue November 15, 2010
  Many CEOs have admirers. Robin Li—the 41-year-old, American-educated chief executive officer of the Chinese search engine Baidu—has a fan club. And each year at the Baidu (BIDU) World conference in Beijing, the members of the Robin Li fan club come out to get close to the object of their worship. [China competition] [ICT]
• N.Korea premier in China for economic ties
  Thu, Nov 11, 2010 SHENYANG, China - North Korea's premier is visiting northeastern China to meet with ranking officials there and speed up joint economic projects between the communist allies, sources here said Wednesday. Choe Yong-rim arrived in the city of Harbin in Heilongjiang Province earlier this week and visited the city of Changchun in a nearby province on Wednesday, the diplomatic sources said. Choe, promoted by North Korean leader Kim Jong-il at a parliamentary convention in June, is seen as trying to consolidate the ties between Pyongyang and Beijing as the two countries seek to develop a joint economic bloc that draws from resources in China. His visit comes after Kim visited the area in late August. During a summit between the North Korean leader and Chinese President Hu Jintao, the countries promised to boost their political and economic cooperation. Choe's trip, also reported by a local daily here, comes after 12 of the highest-ranking North Korean mayoral and provincial chiefs visited the same region in October, touring food, chemical and agricultural factories along with other major facilities. Believed to be a key aide to North Korea's next leader, Kim Jong-un, the premier inspected electronics and medicine companies and a agricultural research center in Harbin on Tuesday, the sources said. Choe, 79, formerly chief of the Pyongyang department for the ruling Workers' Party, has been noted for his rise to power in the past several months. He gave a speech at a mass rally on May 30, where as many as 100,000 North Koreans reportedly denounced South Korea and the United States for blaming Pyongyang for the sinking of a South Korean warship in March. -- The Korea Herald/Asia News Network [China NK] [Northeast]
• Chinese Missiles Could Close U.S. Bases in Attack, Report Says
  By Tony Capaccio - Nov 12, 2010 2:12 AM GMT+0900 Tweet (16)LinkedIn Share Business ExchangeBuzz up!DiggPrint Email .The Chinese military’s non-nuclear missiles have “the capability to attack” and close down five of six major U.S. Air Force bases in South Korea and Japan, an unpublished government report says. China’s improved inventory of short- and medium-range missiles provides a “dramatic increase” in its ability to “inhibit” U.S. military operations in the western Pacific, according to excerpts from the draft of the 2010 annual report by the U.S.-China Economic and Security Review Commission scheduled for release on Nov. 17. China’s current force “may be sufficient” to destroy runways, parked aircraft, fuel and maintenance facilities at Osan and Kunsan air bases in South Korea, and Kadena, Misawa and Yokota bases in Japan, the report says. The facilities are within 1,100 kilometers (684 miles) of China. [Military balance]
• U.S.-China Economic and Security Review Commission
  Release of 2010 Annual Report to Congress
  
  Among the topics in the 316-page Report: Economics and Trade Issues: • China’s ‘indigenous innovation’ policy to promote favored industries and limit imports. • China’s currency manipulation and its effects on the United States. • China’s purchases of U.S. Treasury securities and the implications for the United States. • China’s measures to restrict rare earth element exports. • China’s past and future role in the World Trade Organization. National Defense Issues: • China’s growing air and missile capabilities, and the increasing capacity to strike U.S. bases and allies in the region. • China’s improving commercial aviation manufacturing capabilities, and the spillover benefits for China’s defense aviation industry. • The increasingly sophisticated nature of malicious computer activity associated with China. Foreign Affairs Issues: • China’s increasing political, economic, energy and security interactions with Southeast Asia, and the implications for U.S. interests in the region. • Recent developments in the China-Taiwan relationship, and implications for the United States. Energy and Environmental Issues: • China’s efforts to promote green energy in order to increase its energy security, prevent environmental degradation, and develop a globally competitive green energy industry. • Ohio’s response to China’s promotion of its alternative energy industries. Censorship Issues: • How China’s revised state secrets laws may conflict with U.S. disclosure requirements and put U.S. investments in Chinese firms at risk. The U.S.-China Economic and Security Review Commission is a bipartisan Congressional Commission established in 2000 to investigate, analyze and provide recommendations to Congress on the economic and national security implications of the U.S.–China relationship,
• Shining Tradition of Blood-sealed Ties between DPRK and China
  Pyongyang, October 24 (KCNA) -- The tradition of ties of friendship between the peoples of the DPRK and China sealed in blood in the joint struggle against U.S. and Japanese imperialisms, the two formidable enemies, has steadily developed on the basis of particularly comradely trust and sense of revolutionary obligation of the leaders of the elder generation of the two countries. Rodong Sinmun Sunday says this in a signed article. It goes on:
  The revolutionaries of the elder generation of the two countries provided the historic roots of the DPRK-China friendship and cultivated them to be strong in the joint anti-Japanese struggle. President Kim Il Sung rendered unstinted assistance to the Chinese people in their revolutionary struggle, while leading the great anti-Japanese war to liberate the country.
• DPRK Ambassador to China Appointed
  Pyongyang, October 26 (KCNA) -- Ji Jae Ryong was appointed as DPRK ambassador to China, according to a decree of the Presidium of the DPRK Supreme People's Assembly.
• Kim Jong Il Receives Delegation of CPC
  Pyongyang, October 11 (KCNA) -- Kim Jong Il, general secretary of the Workers' Party of Korea and chairman of the National Defence Commission of the Democratic People's Republic of Korea, on Monday received a delegation of the Communist Party of China led by Zhou Yongkang, member of the Standing Committee of the Political Bureau of the Central Committee and secretary of the Central Commission of Politics and Law of the CPC, on a visit to the DPRK
• Protocol Inked between DPRK and China
  Pyongyang, October 18 (KCNA) -- A protocol on the revision and supplementation of the agreement on cooperation in the patent field was inked here Monday by the DPRK Invention Office and the State Intellectual Property Office of the People's Republic of China. Present there from the DPRK side were officials of the office headed by its Deputy Director O Pak and from the Chinese side members of the Chinese delegation led by Deputy Commissioner Li Yuguang. [IPR]
• Reception Given for Delegation of Veteran Fighters of CPV
  Pyongyang, October 19 (KCNA) -- A reception was given on Tuesday in honor of the delegation of veteran fighters of the Chinese People's Volunteers on a visit to the DPRK on the occasion of the 60th anniversary of the entry of the CPV into the Korean front. Present there on invitation were the delegation of veteran fighters of the CPV led by Wang Hai, former commander of the Air Force of the Chinese People's Liberation Army, and staff members of the Chinese embassy here. Present there were O Kuk Ryol, vice-chairman of the DPRK National Defence Commission, Pak Jae Gyong, vice-minister of the People's Armed Forces, general officers and other officers of the Korean People's Army. Speeches were made at the reception. The delegation of veteran fighters of the CPV arrived here on the same day. [Korean War]
• Guo Boxiong Makes Public Written Arrival Speech
  Pyongyang, October 23 (KCNA) -- Col. General Guo Boxiong, vice-chairman of the Central Military Commission of the People's Republic of China, made public a written speech at the airport upon his arrival in Pyongyang Saturday. He said in his speech that the Chinese high-ranking military delegation has come to the DPRK to participate in the celebrations of the 60th anniversary of the entry of the Chinese People's Volunteers into the Korean front and pay an official goodwill visit to the DPRK at the invitation of the DPRK National Defence Commission. He went on: China and the DPRK are the friendly neighbors having lips-and-teeth relations. [Korean War]
• Mass Meeting Marks 60th of CPV's Entry into Korean Front
  Pyongyang, October 25 (KCNA) -- A mass meeting was held with splendor in Pyongyang Monday on the occasion of the 60th anniversary of the entry of the Chinese People's Volunteers into the Korean front. Kim Jong Il, general secretary of the Workers' Party of Korea, chairman of the National Defence Commission of the DPRK and supreme commander of the Korean People's Army, was present there. [Korean War]
• China's Field of Dreams
  The Chinese are falling in love with America's national pastime. And it might not be long before a kid from Wuxi is throwing fastballs in Boston. BY BENJAMIN HAAS | OCTOBER 27, 2010 Huadin Danzin, who grew up a nomad on the Tibetan plateau mostly concerned with tending his yaks, is today consumed by one burning ambition: throwing a perfect strike. Danzin, 15, is one of 26 boys at the Major League Baseball development center in Wuxi, China, training with the dream of one day playing in China's eight-year-old, seven-team professional baseball league. Looking at him today, it's hard not to confuse him with the millions of young American would-be Derek Jeters. [China rising]
• China Defends Xi's Remarks About Korean War
  The Chinese government on Thursday gave its backing to remarks by the country's Vice President Xi Jinping that the Korean War was "a great and just war for safeguarding peace and resisting aggression." Xi, widely tipped as China's next president, had made the remarks Monday on the 60th anniversary of China's entry into the war. Chinese Foreign Ministry spokesman Ma Zhaoxu said the Chinese government's position is clear. "A symposium was held in Beijing yesterday to commemorate the 60th anniversary of the Chinese People's Volunteers entering [North Korea] to help in the war to resist U.S. aggression," Ma said, and Xi "delivered an important speech on behalf of the Communist Party of China's Central Committee, the State Council and the Central Military Commission." [Korean War] [China NK]
• US 'politicizing' Asian meetings
  Source: Global Times [02:38 October 29 2010] Comments By Guo Qiang Asian leaders gathered in Vietnam's capital city of Hanoi Thursday for a series of meetings amid a US attempt to reinforce its power in the Asia-Pacific region, and analysts say Premier Wen Jiabao is attending to mitigate concerns of some Asian countries over a rising China. The meetings are taking place against the backdrop of mounting pressure on China over its currency and maritime territorial disputes. Major concerns expected to be addressed during the series of meetings include the increasing US presence in Asia, as well as the influence that the presence of the US and Russia at the East Asia Summit will have on regional politics and economies. [China confrontation]

• Maybe It’s Time to Stop Listening to David Shambaugh on China
  I usually discount China-bashing rhetoric pretty heavily. But then I read a quote from David Shambaugh in the New York Times. “This administration came in with one dominant idea: make China a global partner in facing global challenges,” said David Shambaugh, director of the China policy program at George Washington University. “China failed to step up and play that role. Now, they realize they’re dealing with an increasingly narrow-minded, self-interested, truculent, hyper-nationalist and powerful country.” When Dr. Shambaugh says something like that, one has to think about it. Shambaugh is one of the deans of modern China political studies. I have appended his gigantic resume to the end of this post because it’s too long to include here. Dr.Shambaugh definitely has the ear of the media, and I assume his counsels hold sway in the White House as well. Jeffrey Bader, the administration’s China man, and Shambaugh share membership in the same Brookings Institute boffin brotherhood. And if the Chinese have lost David Shambaugh, the U.S. China policy is headed for the deep freeze. The issue, as I see it, is that Shambaugh is a serious “responsible stakeholder” proponent and analyzes Chinese foreign policy in terms of its difficulties in conforming to the “responsible stakeholder” paradigm. [China confrontation]
• How North Korea was lost - to China
  By Aidan Foster-Carter Who lost North Korea? The question may sound odd, even impertinent. It carries echoes of a similar question that was bruited next door, 60 years ago, when North Korea was new. Then, the question was: Who lost China? That was how some in the United States put it. They were anguished and angry that their man, Chiang Kai-shek, had unaccountably been chased off the mainland by an unknown communist upstart called Mao Zedong. In the emerging Cold War, which rapidly dissolved the pre-1945 anti-fascist global alliance, the world's most populous nation had in this view fallen on the wrong side of the fence. USSR 1, USA 0 - or so it seemed. That debate - more a witchhunt, really - was nasty as well as presumptuous. In what sense was China ever America's to lose in the first place? Yet geopolitics won't go away. [China NK] [US NK policy] [Agency]
• ECFA service concessions take effect
  •Publication Date:10/28/2010 •Source: Taiwan Today •By Audrey Wang Five Taiwanese service sectors will begin enjoying benefits as specified in the cross-strait Economic Cooperation Framework Agreement Oct. 28, according to the Ministry of Economic Affairs. Three of the first sectors to benefit from the deal—computer and software implementation, R&D in natural sciences and engineering, and conventions and exhibitions—will be allowed to set up wholly-owned companies in mainland China, the MOEA said. Temporary licenses in the mainland for Taiwanese accounting firms will be extended to one year, and Taiwanese-produced motion pictures will be exempt from mainland China’s limit of 50 foreign films per year in its cinema market. “These terms are more favorable than those granted to such World Trade Organization members as Japan, the European Union, South Korea and the U.S.,” officials said, adding that the concessions will give domestic providers more flexibility in operations and capital management [FTA] [Services]
• China's Next Leader Hails Korean War as 'Great and Just'
  Chinese Vice President Xi Jinping, widely tipped as his country's next leader, on Monday called the Korean War "a great and just war for safeguarding peace and resisting aggression." Xi was speaking in a meeting with veterans of the Chinese People's Volunteers to commemorate the 60th anniversary of China's entry into the war. Xi said the war was imposed on the people of China by "imperialist invaders," and the Communist Party of China and Mao Zedong decided to enter the war at the request of North Korea while the security of the new China was at risk. "It was also a great victory gained by the united combat forces of China's and [North Korean] civilians and soldiers, and a great victory in the pursuit of world peace and human progress," Xi said. He added the Chinese people have not forgotten their great friendship with North Korea. [Korean War] [China NK]
• Shine is coming off once-golden Western standards
  Source: Global Times [23:03 October 27 2010] Comments By Zheng Xiwen Over the years, it seems that people always think the West stands for excellence. Wall Street is regarded as the best financial standard and model. Upon mentioning journalistic independence and impartiality, only the BBC and CNN come to mind. While talking about films, humanities, science and technology awards, the Academy Awards and the Nobel Prize are the only focus. For many people, the West represents the world and the Western standard is the gold standard. However, in recent years, new realities have gradually pricked the bubble of Western myth. On the economic front, the outbreak of the international financial crisis has sparked criticism of the Western economic development models and highlighted the hypocrisy and greed of Wall Street. The three major international credit rating agencies have been in the pocket of large Western firms for many years. In terms of politics, the war in Iraq, launched with the excuse of seeking weapons of mass destruction, found no trace of them. This made people question the justice and legality of the war. Reporting events in China, including the violence in the Tibetan and Xinjiang autonomous regions and the events around the Beijing Olympic Games, some Western media crossed a professional line in substituting rumor for fact, which sparked anger in China. As for the rule of law, the Guantanamo prison abuse scandals and the new revelations about the use of torture by the CIA and other US agencies contradicts the Western ideal of "rule of law" and "human rights." This shows that the West's star is fading and the West's so-called standards and awards are losing their original significance. [Decline] [Resurgence]
• US says China must clarify rare earth exports
  By MATTHEW LEE The Associated Press Thursday, October 28, 2010; 5:05 AM HONOLULU -- Secretary of State Hillary Rodham Clinton on Wednesday called on China to clarify its policy on the export of exotic metals key to the global high-tech industry. Opening a two-week Asia-Pacific
  At all stops, she said she would focus on strategic planning to counter existing threats from North Korea and other "contingencies," an apparent reference to possible Chinese muscle-flexing. "We need to be looking at all kinds of scenarios, all kinds of contingencies, work though responses to events that might occur in the future and, of course, stay focused on the threat posed by North Korea," she said. [US global strategy] [Inversion]
• China, North Korea enhance ties
  Beijing military officials visit DPRK amid a series of high-level meetings Bao Daozu China Daily Publication Date : 26-10-2010 Chinese military officials have expressed their firm resolve to continue advancing their longtime friendship with Pyongyang in commemoration of Chinese soldiers who gave their lives during the Korean War. Guo Boxiong, vice-chairman of China's Central Military Commission, led the military delegation on Sunday to lay a wreath at the martyrs cemetery of Chinese People's Volunteers (CPV) 100 km east of Pyongyang. "To review the past is to focus on the future. China and the Democratic People's Republic of Korea (DPRK) should join hands to further develop the long-lasting friendship and contribute to the prosperity of both countries and the world," Guo said.
• Taking Harder Stance Toward China, Obama Lines Up Allies
  By Mark Landler and Sewell Chan Published: October 25, 2010 WASHINGTON — The Obama administration, facing a confrontational relationship with China on exchange rates, trade and security issues, is stiffening its approach toward Beijing, seeking allies to confront a newly assertive power that officials now say has little intention of working with the United States. [China confrontation] [Inversion]
• Ma: Never forget historical lessons of war against Japan
  President Ma Ying-jeou (left) points out a document to Premier Wu Den-yih while attending an exhibition to mark Taiwan’s 65th Retrocession Day in Taipei Oct. 25. (CNA) •Publication Date:10/26/2010 •Source: Taiwan Today •By Elaine Hou ROC President Ma Ying-jeou said Oct. 25 that the crimes committed by the Japanese people during the Second World War can be forgiven, but that the lessons of history, written in blood and tears, must never be forgotten. The president made the remarks while attending the opening ceremony of an exhibit commemorating Taiwan’s retrocession from Japan to the ROC at the end of what local historians refer to as the Eight Year War of Resistance against Japan (1937-1945). [Japanese colonialism]
• N.Korea, China Mark Participation of Chinese Troops in Korean War
  North Korea and China have marked the 60th anniversary of the entry of Chinese forces into the Korean War. In Pyongyang, North Korean leader Kim Jong-il and his youngest son and heir apparent Kim Jong-un attended a mass rally in honor of North Korea's military alliance with China. General Guo Boxiong, a vice chairman of China's Central Military Commission, also attended the event, held at an indoor stadium. Guo is heading a Chinese military delegation that arrived Saturday in North Korea for a four-day visit.
• China Telecom Giant Makes Push for U.S. Market
  By JOHN MARKOFF and DAVID BARBOZA Published: October 25, 2010 SANTA CLARA, Calif. — This spring, an executive from a Chinese telecommunications equipment company made an intriguing job offer to a Silicon Valley software engineer. The Chinese company, Huawei Technologies, wanted to get into the booming market for Internet-based computing, and it had just moved its United States research headquarters here to capture some of the best local talent. Enlarge This Image Peter DaSilva for The New York Times The company, which is trying to expand its reach in the United States, has 17 research centers around the world, including one in Santa Clara, Calif. “How many engineers would you like for your team? Several hundred? That’s not a problem,” the recruiter said, according to the engineer. When the software manager turned down the offer, the Chinese executive was undeterred and asked for the name of the engineer working under him. The exchange underscores Huawei’s bold entrance onto the world’s technology stage. In the span of a decade, it has gone from imitating others’ products to taking on international rivals with its own innovative computing and communications gear. But Huawei has largely been locked out of the United States — until now. [China rising] [ODI] [China confrontation]
• N.Korea Replaces Ambassador to China
  Just six months after assuming his post North Korea's ambassador to China Choe Pyong-gwan will be replaced with Ji Jae-ryong, a senior member of the North's ruling Workers' Party. According to diplomatic sources, Choe made farewell visits to Chinese foreign ministry officials and other North Korean diplomats in Beijing before leaving for Pyongyang on Saturday. The move is drawing much attention as the North’s previous ambassador to China kept his post for more than 10 years. Observers say although the exact reasons behind the reshuffle are unclear, one possible explanation could be that Choe is being reprimanded for the slump in diplomatic activity between the two countries since he took the post in April.
• N.Korea replaces ambassador to China
  Speculation has swirled around the unexpected move, as some analysts say N.Korea has dispatched a more influential figure By Park Min-hee, Beijing Correspondent North Korea has abruptly replaced its ambassador to China, according to reports. This move comes six months after former Ambasador Choi Byong-kwan assumed the position in April of this year.
• The Chances of a War with China are Rising
  By Mike Whitney Global Research, October 22, 2010 Information Clearing House - 2010-10-21 The United States conducts monetary policy the same way it conducts foreign policy; unilaterally. When Fed chairman Ben Bernanke signaled last week that he was planning to restart his bond purchasing program (Quantitative Easing) he didn't consult with allies at the IMF, the G-20 or the WTO. He simply issued his edict, and that was that. The fact that the Fed's policy will flood emerging markets with cheap capital, pushing up the value of their currencies and igniting inflation, is of no concern to Bernanke. He operates on the same theory as former Treasury Secretary John Connally who breezily quipped to a group of euro finance ministers, “The dollar is our currency, but your problem.”
  Neither the Obama administration nor the Fed want a full-blown trade war with China. They'd rather see China “assume its position in the global system”. (as US diplomats aver) But that means that China will have to compromise on, what it considers to be, a matter of national sovereignty. And, there's the rub. China is a proud nation and doesn't want to be told what to do. But that's not how the system works. Behind the facade of free markets and international institutions, lies an imperial system ruled from Washington. That leaves Beijing with two options; they can either bow to US pressure and fall in line or shrug off Washington's demands and continue on the same path. If they choose to resist, relations with the US will grow more acrimonious and the probability of conflict will rise. [China confrontation] [Currency]
• Government of Taiwan objects to AP report
  Oct 22Advertisement TAIPEI, Taiwan (AP) -- The government of Taiwan has objected to an AP dispatch based on an interview Tuesday with President Ma Ying-jeou, saying that certain paraphrases used in the article distorted the president's message and contained errors of emphasis and fact. The disputed passages concerned the degree to which the president is open to a political dialogue with Beijing, the likelihood of such talks in the near future, and specifically whether he suggested a dialogue on political issues could take place as soon as his second term of office, if he is re-elected in 2012. [Straits]
• AP Interview: Taiwan's Ma moves ahead with China
  (AP) – 4 days ago TAIPEI, Taiwan (AP) — Taiwanese President Ma Ying-jeou said Tuesday he is open to a political dialogue with China once remaining economic issues are resolved, though he gave no timetable for when those discussions might start. In an interview with The Associated Press, Ma credited his outreach to China, which has so far centered on trade and commercial ties, with easing tensions in one of East Asia's longest-running feuds. The 60-year-old leader, who took office in 2008, said the warmer relations between Taipei and Beijing have also benefited the United States, long the island's most important military benefactor. [Straits] [Spin]
• OCTOBER 22, 2010 Reluctant Warriors
  Assertive Chinese and job-hungry Americans are gearing up for a trade war across the Pacific. Fortunately, cooler heads will likely prevail. BY EVAN A. FEIGENBAUM | OCTOBER 19, 2010 The United States and China are deeply interdependent, with trade in goods between the two countries reaching a whopping $366 billion in 2009. But a growing number of influential people on both sides find that reality deeply alarming, albeit for different reasons. [China confrontation]
• PRC had no choice but to fight in Korea
  * Source: Global Times * [22:14 October 21 2010] * Comments By Chen Ping Six decades after China sent its soldiers to fight the US-led UN troops on the Korean Peninsula, a handful of domestic scholars still debate the correctness of this decision. They argue that China's participation in the Korean War caused great loss of life, came at the expense of China's economic reconstruction, prevented Beijing from recovering Taiwan, made Beijing, at least in the short run, more dependent upon Moscow than before, and excluded Beijing from the UN until the early 1970s. Yet others argue that Chinese leaders, primarily Chairman Mao Zedong, were left with no option but to intervene in the Korean War, as the outcome of the Korean crisis was closely related to China's vital domestic and international interests. [Korean War]
• A fifth column attack and relations with China
  The ruling Grand National Party and main opposition Democratic Party have been waging a battle over a statement made by DP floor leader Park Jie-won, who quoted Chinese Vice President Xi Jinping as saying that the “Lee Myung-bak administration is a disruptor of peace on the Korean Peninsula.” Park claims that Xi used the term “disruptor of peace” in May while criticizing the foreign policy of the South Korean government to former President Kim Dae-jung, who was visiting China at the time. The Cheong Wa Dae (the presidential office in South Korea or Blue House) and ruling party are saying that the records of the meeting drafted by South Korean foreign ministry attendees show no mention of the statement. It is a well-known fact that China has been expressing its displeasure with the Lee administration’s foreign policy [China SK]
• N.Korea, China Grow Ever Closer
  The senior secretaries of all North Korea's 11 metropolitan and provincial party committees paid a rare collective visit to a senior member of the Communist Party of China in Beijing on Tuesday. The North Korean delegation led by Mun Kyong-dok, the senior secretary of the Pyongyang municipal party committee, met with Zhou Yongkang, a member of the Politburo Standing Committee who ranks ninth in the hierarchy, to discuss economic cooperation. Zhou was quoted by the official Xinhua news agency as saying it was "the first time" in the history of bilateral relations that senior secretaries of the Workers Party's metropolitan and provincial committees have visited China as a group. "I wish that you will expand exchange with various Chinese regions you're visiting and achieve success from your tours." A North Korean Workers Party delegation led by Mun Kyong-dok (second from right), the senior secretary of the Pyongyang municipal party committee, meets with Zhou Yongkang (first from right), a member of the Politburo Standing Committee, in Beijing on Tuesday. /CCTV-Xinhua The North Koreans also met with their Chinese counterparts to discuss investment in development projects in the North. The Chinese officials were in Beijing to attend the fifth plenary session of the 17th Communist Party Central Committee. [China NK] [FDI]
• 'No troops going to North Korea'
  Source: Global Times [04:53 October 21 2010] Comments By Guo Qiang Senior Chinese strategists Wednesday denied a report that said China may position troops in North Korea. The strategists also accused conservatives in South Korea of escalating tensions on the Korea Peninsula when bilateral relations between Beijing and Pyongyang were believed to have strengthened after the North introduced the likely successor to Kim Jong-il. South Korea's Dong-A Ilbo newspaper reported Wednesday that China will send 2,000-3,000 People's Liberation Army (PLA) troops to Pyongyang in a bid to help modernize the North Korean army by the end of this year at the earliest, quoting an unnamed source in Beijing. [China NK] [Buildup]
• N. Korea, China Enjoy ‘Honeymoon Period’ in Bilateral Ties
  OCTOBER 13, 2010 11:16 North Korea and China have grown closer since the sinking of a South Korean naval vessel in March under a “honeymoon period” in the wake of Kim Jong Un’s apparent designation as the North’s successor. Beijing took Pyongyang’s side on the Cheonan sinking despite heavy criticism from the international community. China has also supported the third-generation power succession of the North’s ruling Kim family, urging Pyongyang “to continue to build friendship for generations [China NK] [Cheonan] [Inversion]
• 22% of Chinese believe S. Korea responsible for Cheonan sinking
  By Kang Hyun-kyung Chinese people think that South Korea and the United States are more responsible for the sinking of the warship Cheonan than North Korea, a recent public opinion survey found. Rep. Gu Sang-chan of the ruling Grand National Party (GNP) said Thursday that another poll of Chinese and Koreans showed a deep perception gap over bilateral relations between people in the two countries. During the National Assembly’s annual audit of the Ministry of Foreign Affairs and Trade, Rep. Gu said the vast majority of Chinese people thought Korea-China relations were good, but Koreans considered the ties as not working. His staffers conducted three surveys of 703 people ? 300 Chinese living in China, 285 Chinese students in Korea and 128 Korean students attending Seoul National University ? to see if there were any meaningful differences in their attitudes toward the maritime tragedy and Korea-China relations. Twenty-two percent of Chinese said South Korea was responsible for the sinking of the Cheonan near the maritime border in the West Sea on March 26. The tragedy killed 46 sailors. [Cheonan] [Coverup] [Public opinion]
• ECCT set to push for Taiwan, EU trade agreement
  •Publication Date:10/20/2010 •Source: Taiwan Today •By Audrey Wang The European Chamber of Commerce Taipei released its annual position papers Oct. 19, urging Taiwan to pursue trade pacts, including a Trade Enhancement Measures agreement with the European Union. ECCT Chairman Peter Weiss explained that this year’s papers indicate both pieces in place and pieces that are missing for Taiwan’s position in the global economic picture. While entering the World Trade Organization, signing the Government Procurement Agreement and concluding the cross-strait Economic Cooperation Framework Agreement are all positive steps toward Taiwan’s reintegration into the global economy, the ROC government still needs to work on fitting three missing pieces into the incomplete puzzle of East Asia, he said. These areas include adopting international regulatory standards, easing restrictions on imports from mainland China and pursuing more trade agreements with its trading partners. On the issue of a trade pact with the EU, the papers indicate that the European Commission has made it clear that it is interested in discussing non-tariff barriers similar to the free trade agreement negotiated between the EU and South Korea. [FTA]
• The China-ROK Trade Relationship and Implications for Managing Security Cooperation
  by See-won Byun & Scott Snyder Asia Foundation Since their normalization of relations, China has emerged as South Korea’s biggest trade partner and investment destination. Though this has strengthened the Sino-South Korean partnership, growing economic competition presents a new source of tension in the relationship that demands careful political management from both sides. China and South Korea have managed trade tensions such as the garlic (2000) and kimchi (2005) wars, but the lack of institutional mechanisms regulating security relations has undermined similar progress in addressing bilateral security challenges including historical and territorial issues. The Cheonan incident in March 2010 marks the lowest point in China-ROK relations since diplomatic normalization in 1992 and demonstrates the relative weakness of institutional mechanisms for managing the political and security side of the China-ROK relationship. [China NK]
• Xi lambasted Lee’s North policy
  DP rep quotes China’s VP from Beijing meeting in 2009 October 20, 2010 Xi Jinping The opposition Democratic Party yesterday urged the Lee Myung-bak administration to change its hard-line North Korea policy to prepare for changes in China’s leadership, after Vice President Xi Jinping received a major promotion Monday in Beijing. Park Jie-won, floor leader of the Democratic Party, said yesterday that Xi expressed disapproval of the Lee administration’s North Korea policy during a May 2009 meeting with former President Kim Dae-jung in Beijing. Park accompanied Kim to the meeting. “Xi said the Lee administration, along with Japan, acts as the disrupter of the Korean Peninsula’s peace,” Park said. “Xi also said he could not understand why the Lee administration, in contrast to previous administrations, did not make exchanges with the North and kept inter-Korean tensions up.” [China NK]
• President Ma calls for expansion of ROC soft power
  •By Audrey Wang Taiwan has to cultivate its soft power to stand out on the world stage now that the cross-strait Economic Cooperation Framework Agreement is in effect, ROC President Ma Ying-jeou said Oct. 18. Outlining his visions for Taiwan’s economy at the opening of the two-day 8th Annual Global Views Business Forum, organized by the Taipei-based business magazine Global Views, Ma explained that soft power is a country’s ability to get others to accept or acknowledge its goals through persuasion and attraction. He cited the definition given by Joseph S. Nye Jr., the Harvard University scholar who coined the phrase in 1990. “Compared to hard power, this invisible force is stronger and has greater influence on the actions of others,” he said. The remarkable performances of Taiwan’s North Pole marathon runner Tommy Chen, tennis player Lu Yen-hsun, golfer Yani Tseng and philanthropist vegetable vendor Chen Shu-chu are all excellent examples of Taiwan’s soft power, he added. [Softpower]
• Hu Unlikely to Visit N.Korea This Year
  Chinese President Hu Jintao is unlikely to visit North Korea this year, leading to speculation that the first visit to China by North Korean leader Kim Jong-il's son Kim Jong-un since he was officially established as his father's heir will have to wait too. The assumption is based on the custom of alternating visits between the leaders of the two countries. A high-ranking diplomat in Beijing said on Sunday Hu's schedule is packed until the early next year, including the G20 Seoul Summit in November, and Kim senior is in bad health after a stroke, so the chances of Hu visiting North Korea at the end of the year are "almost zero."
• China: View from the inside
  By Geoff Dyer in Beijing Published: October 15 2010 22:42 | Last updated: October 15 2010 22:42 China’s leaders can be excused for feeling a little embattled at the moment. They are reeling from this month’s award of the Nobel Peace Prize to jailed dissident Liu Xiaobo. Their currency policy is under attack from wealthier nations, most recently Japan. And Beijing finds itself under renewed pressure over territorial claims in the South China Sea that have caused unrest among some of its Asian neighbours. In effect, the country is being challenged on central parts of its foreign policy, economic strategy and domestic political system – all at the same time. This in the week that 300 or so leading Communist party officials gathered for the annual meeting at which they are due to approve the outlines of the next five-year plan and settle some of the questions surrounding the next leadership transition in two years’ time. The proliferation of disputes is unlikely to lead to a breakdown in international relations. However, it does suggest China’s ascendance in recent years has been so dramatic that governments around the world, as well as Beijing itself, are still struggling to adjust. [China rising] [China confrontation]
• Is China trying to control Hangul typing technology?
  October 15, 2010 The Grand National Party reacted in horror to a report that China may be trying to create a standardized Korean-language typing system for mobile devices, saying yesterday it will encourage the government to make Korea’s standard recognized worldwide. [China competition]
• Pyongyang wants ‘quick’ response on tourism talks
  October 15, 2010 North Korea urged South Korea yesterday to agree “as quickly as possible” to a working dialogue on resuming their suspended cross-border tourism project, officials said, adding pressure on Seoul, which is wary of possible implications on other inter-Korean exchanges. [Overtures]
• China Practices Intercepting U.S. Stealth Fighters
  The Chinese People's Liberation Army recently staged an intercept exercise targeting the U.S.' latest stealth fighter jet, the F-22 Raptor, Hong Kong's Apple Daily reported Thursday. Japanese media on Oct. 3 reported that the Japanese and U.S. militaries will carry out a joint exercise to practice recapturing the disputed Senkaku or Diaoyutai Islands in November, in case the Chinese capture them in a surprise attack. It said the U.S. nuclear-powered aircraft carrier George Washington and F-22 Raptors will take part in the exercise. [China confrontation] [Military balance]
• Soaring US trade deficit fuels tension
  By Alan Beattie in Washington and Alan Rappeport in New York Published: October 14 2010 19:58 | Last updated: October 14 2010 19:58 The US trade deficit soared in August as surging Chinese imports worsened global economic imbalances and stoked rising American anger over China’s exchange rate policy. [Currency] [Inversion]
• China 'Warned N.Korea to Leave Kim Jong-nam Alone'
  Close aides to North Korean leader Kim Jong-il's third son Jong-un planned to attack his older brother Kim Jong-nam when Jong-un was named as the successor to the leadership in January last year but China told them to leave him alone, officials here said Tuesday. The North Korean leader's reform-minded oldest son has been living in virtual exile in Beijing and Macau since he fell out of favor with his father. A South Korean official said Jong-un's aides tried "to do something to Kim Jong-nam, who has a loose tongue abroad," but it seems China warned them not to lay a hand on him on Chinese soil. Kim Jong-nam reportedly has close ties with China's powerful "princelings," an elite group of the children of senior Chinese officials. The plan was apparently fuelled by rumors that China would attempt to march into the North and install Kim Jong-nam as the ruler in case the regime collapses. "Kim Jong-nam won't go back to the North but stay in China," the official added. On Saturday, the 38-year old told Japanese TV he is against the hereditary succession in the North. [Succession]
• Chinese, U.S. Defense Chiefs Confer
  Tuesday, Oct. 12, 2010 U.S. Defense Secretary Robert Gates yesterday held a 30-minute discussion with his Chinese counterpart ahead of a regional conference in Vietnam, the Los Angeles Times reported (see GSN, Oct. 6). Gates' meeting with Gen. Liang Guanglie marked the first bilateral military exchange between the nuclear powers since China canceled all senior-level armed forces exchanges over the Obama administration's January approval of a large arms package to Taiwan. Beijing claims the island as its territory. "When there are disagreements, it's all the more important to talk with each other, not less," a Defense Department press release quoted Gates as saying. [Bilateral] [China confrontation] [Double standards]
• China’s new pragmatic consumers
  They spend more in categories they highly value, and they generally trade down in less compelling ones. OCTOBER 2010 • Yuval Atsmon, Vinay Dixit, Max Magni, and Ian St-Maurice ..Increasingly, Chinese consumers are behaving like their counterparts in the developed world. They are more demanding and pragmatic than ever as their horizons expand beyond basic concerns about product features. Also, they are willing to pay for better value and quality and are spending more time researching and are exploring product nuances. Yet McKinsey’s 2010 survey of China’s consumers also found that they are blazing a uniquely Chinese trail (see sidebar “About the research”). The country obviously offers some of the world’s biggest growth opportunities—but only for consumer product companies that understand and respond to this rapidly evolving marketplace. McKinsey Insights China conducted its first study of Chinese consumers in 2005 and has since surveyed over 46,000 of them. The 2010 survey, conducted from December 2009 to March 2010, covered 15,000 consumers in 49 Chinese cities across all major geographic regions, city clusters, city tiers, and income segments. The research addresses the evolution of the Chinese consumer’s overall attitudes, behavior, and preferences and identifies purchase patterns and motivations relevant to key consumer goods categories, including apparel, automotive, consumer electronics, food and beverages, and home and personal care. Back to topChinese consumers remain brand conscious but, unlike shoppers elsewhere, they focus on value so intensely that brand loyalty is often secondary.
• China Emerges as a Scapegoat in Campaign Advertisements
  By DAVID W. CHEN Published: October 9, 2010 Recommend With many Americans seized by anxiety about the country’s economic decline, candidates from both political parties have suddenly found a new villain to run against: China. In the last few weeks, at least 29 candidates, either directly or through their supporters, have unveiled advertisements tapping into Americans’ anxiety over China’s economic might. The list includes 19 Democrats and 10 Republicans. House Rep. Jason Altmire (D-Pa.) Rep. Michael Arcuri (D-N.Y.) Jon Barela (R-N.M.) Rep. Joe Donnelly (D-Ind.) Ryan Frazier (R-Colo.) Raj Goyle (D-Kan.) Denny Heck (D-Wash.) Robert Hurt (R-Va.) Ann McLane Kuster (D-N.H.) Spike Maynard (R-W.Va.) Rep. Scott Murphy (D-N.Y.) Rep. Bill Owens (D-N.Y.) Rep. Mark Schauer (D-Mich.) Austin Scott (R-Ga.) Rep. Zack Space (Ohio) Tim Walberg (R-Mich.) Rep. John Yarmuth (D-Ky.) Tom Ganley (R-Ohio) Rep. Ben Chandler (D-Ky.) Bob Gibbs (R-Ohio) Rep. Martin Heinrich (D-N.M.) Stephen Fincher (R-Tenn.) Senate Sen. Barbara Boxer (D-Calif.) Lt. Gov. Lee Fisher (D-Ohio) Gov. Joe Manchin (D-W.Va.) Sen. Harry Reid (D-Nev.) Rep. Joe Sestak (D-Pa.) Governor Gov. Ted Strickland (D-Ohio) Susana Martinez (R-N.M.) An ad by Representative Zack Space accuses his Republican rival, Bob Gibbs, of supporting policies that sent jobs to China. From the marquee battle between Senator Barbara Boxer and Carly Fiorina in California to the House contests in rural New York, Democrats and Republicans are blaming one another for allowing the export of jobs to its economic rival [China confrontation] [Offshoring] [Decline]
• Buffett’s China-Gushing Optimism Sells Like Sex: William Pesek
  October 04, 2010, 3:20 PM EDT By William Pesek Oct. 5 (Bloomberg) -- Warren Buffett says China’s BYD Co. has “momentum.” It may have more to do with his name than the company’s. Such is the power of the most famous investor. Buffett, worth $47.5 billion, according to Bloomberg data, homes in on a Shenzhen automaker and its stock heads for the stratosphere. This dynamic works both ways. Add a China element to any company or trend, and success is virtually assured. China is the economic equivalent of sex -- it sells. [China rising]
• Huge potential in halal trade
  Made In China
  By Chow How Ban China is counting on its Muslim-majority Ningxia, Gansu and Xinjiang regions and Silk Route roots to expand economic cooperation with the Arab states. CHINA has something to offer everyone. From its strong manufacturing capability and real estate to green energy development, and now even goods for the Muslim market. You name it. The recently-concluded China (Ningxia) International Investment and Trade Fair at Yinchuan, the capital of the Ningxia Hui Autonomous Region, showed up the Muslim market as another area with huge potential. [Halal]
• Taiwan congratulates Liu Xiaobo on winning Nobel Peace Prize
  2010/10/08 21:15:37 Taipei, Oct. 8 (CNA) Taiwan's government on Friday congratulated Chinese dissident Liu Xiaobo for winning the 2010 Nobel Peace Prize and urged the Chinese government to engage in the promotion of human rights as its economic power grows. [Straits]
• India’s unwise military moves
  Source: Global Times [00:09 June 11 2009] Comments In the last few days, India has dispatched roughly 60,000 troops to its border with China, the scene of enduring territorial disputes between the two countries. J.J. Singh, the Indian governor of the controversial area, said the move was intended to “meet future security challenges” from China. Meanwhile, Indian Prime Minister Manmohan Singh claimed, despite cooperative India-China relations, his government would make no concessions to China on territorial disputes. The tough posture Singh’s new government has taken may win some applause among India’s domestic nationalists. But it is dangerous if it is based on a false anticipation that China will cave in. [China India]
• Nobel Prize for Dissident Is Seen as Rebuke to China
  By EDWARD WONG Published: October 8, 2010 BEIJING — Few nations today stand as more of a challenge to the democratic model of governance than China, where an 89-year-old Communist Party has managed to quash political movements while creating a roaring, quasi-market economy and enforcing a veneer of social stability. .With the United States’ economy flagging and its global influence in decline, some Chinese leaders now appear confident in asserting that freedom of speech, multiparty elections and constitutional rights — what some human rights advocates call universal values — are indigenous to the West, and that is where they should stay. The awarding of the Nobel Peace Prize to Liu Xiaobo, 54, was a sharp rejoinder to that philosophy. Of course, it was a Norwegian panel that gave him the prize, providing Chinese officials and their supporters with ample ammunition to denounce the move as another attempt by the West to impose its values on China. [China confrontation] [Manipulation] [Human rights] [Double standards]
• China issues travel alert against Japan
  Posted: Wed 6 Oct, 2010 10:39 AM China has issued a travel warning against Japan, for its citizens. The decision comes in the wake of a group of Chinese tourists being attacked on Fukuoka. According to a report in TourExpi, ten cars filled with Japanese citizens attacked a bus carrying the tourists. The Chinese National Tourism Administration has issued a warning which states: “Chinese tourists and tour groups currently in Japan, or planning to go to Japan, should watch their travel safety.” Relations between the two countries have deteriorated following an argument over the Diaoyu islands, over which both claim sovereignty. Tourism has greatly suffered, with Japan Airlines claiming than more than 1,000 people cancelled flights between the two countries recently [China confrontation] [Territorial disputes]
• MND wants F-16s to counter Beijing's missile threat
  According to MND Deputy Minister Andrew Yang, Taiwan is interested in acquiring F-35 jet fighters, as pictured, in the future. (Courtesy of Lockheed Martin via USAF)•Publication Date:10/08/2010 •Source: Taiwan Today •By Elaine Hou Taiwan urgently requires F-16 C/D jet fighters from the U.S. to counter mainland China’s growing missile and aircraft threats, Deputy Minister of National Defense Andrew Yang said Oct. 6. Yang told U.S. daily The Washington Times that Taiwan needs the newer model F-16s to replace its aging weapons in order to enhance its air defenses and overall security, adding that the military would also like to purchase more advanced F-35 jets in the future. [Straits] [Military balance] [Arms sales] [China confrontation]
• It's the Chinese, Stupid
  Are Democrats so afraid of getting crushed in the midterm elections that they've turned to demonizing China? BY MAX STRASSER | SEPTEMBER 29, 2010 It's a political strategy as tried and true as stump speeches, barbecues, and baby-kissing: When times are tough in your district, find someone else to blame. With U.S. midterm election campaigns now in high gear, the boogeyman of choice in regions with high unemployment and sluggish manufacturing is -- unsurprisingly -- China. And with President Barack Obama struggling to cajole an apathetic base, Democrats have been playing the red-menace card more than their Republican opponents. Democrats in the rust belt -- the part of the country hardest hit by the downturn in steel, auto manufacturing, and other heavy industries -- are making a concerted effort to blame unemployment on outsourcing, painting their Republican opponents as pro-corporate politicians who care more about maximizing profits than they do about keeping jobs in Michigan, Illinois, Pennsylvania, or Ohio. But in a year when many Republicans are shedding the establishment mantle in favor of Tea Party populism, it doesn't seem to be working. [Offshoring] [China confrontation] [Domestic]
• Korea Falls Behind as China Grabs Future Growth Industries
  The global economic crisis was a chance for the Korean economy to demonstrate its resilience, but a closer look at the economic situation shows that this is no time for Seoul to rest on its laurels. In conjunction with the Samsung Economic Research Institute, the Chosun Ilbo diagnosed seven industries to map out a new strategy for the future of the Korean economy 10 or 20 years hence. [China competition]
• China Transforms from Copycat to Patent Powerhouse
  The company that filed the most international patent applications in 2008 was not from Japan or the U.S. It was China's Huawei Technologies, a telecommunications equipment maker based in Shenzhen. Huawei filed 1,737 patent applications under the Patent Cooperation Treaty of the World Intellectual Property Organization, nudging Japan's Panasonic Corp. (1,729 applications) into second place. It was the first time for a Chinese company to top the list. Huawei had ranked second after Panasonic in the previous year, but it had trailed by only 44 applications. [China rising] [IPR]
• Chinese Textbooks Distort History of Korea
  Chinese textbooks give seriously distorted accounts of Korea's past, analysis of 126 Chinese history books finds. According to the analysis announced by Grand National Party lawmaker Park Young-ah on Wednesday based on data from the Northeast Asian History Foundation, most Chinese history textbooks inaccurately shrink the territory of the ancient Korean kingdom of Koguryo to a tiny realm within the Korean Peninsula. Many of the books also disparage some parts of Korean history. englishnews@chosun.com / Oct. 07, 2010 12:08 KST
• U.S. conducting assessment of Taiwan's defense needs
  2010/10/06 17:37:37 Washington, Oct. 5 (CNA) Washington has begun a sweeping assessment of Taiwan's defense needs over the next five to 10 years to determine the types of defensive weapon systems the United States should provide it with, a U.S. business leader said Tuesday. Rupert Hammond-Chambers, president of the U.S.-Taiwan Business Council, which groups U.S. companies with interests in Taiwan, made the remarks following the 2010 U.S.-Taiwan Defense Industry Conference that took place in Cambridge, Maryland Oct. 3-5, bringing together more than 140 government officials, scholars, experts and defense company representatives [China confrontation] [Arms sales] [MISCOM}
• China's 'frown diplomacy' in Southeast Asia
  By Donald K Emmerson "Smart Power, Chinese Style" is the title of a 2008 article by a renowned Singaporean analyst of global affairs, Kishore Mahbubani. In his essay, [1] Kishore praised China for the "competence" of its diplomacy. He contrasted China's "deft geopolitical instincts" with American "incompetence" and "arrogance." He noted admiringly Beijing's fealty to ancient principles of Chinese statecraft once summarized by Deng Xiaoping, including admonitions to observe and analyze calmly, deal with changes patiently, and avoid the limelight. Keeping a low profile was especially significant for Kishore since it explained "much of China's recent behavior in international fora." [China confrontation] [Inversion]
• Taiwan probing report on U.S.-Japan joint exercise over Tiaoyutais
  2010/10/03 18:37:49 Taipei, Oct. 3 (CNA) Taiwan's representative office in Tokyo has launched a probe into a report published Sunday by the Sankei Simbun newspaper that the United States and Japan are slated to hold a joint military exercise in November as a mock operation to retake the Tiaoyutai Islands if China occupies them, Foreign Ministry spokesman James Chang said that day. Chang said the Republic of China's sovereignty claim over the islands is [Territorial disputes] [US Japan alliance] [Straits]
• Krugman’s Chinese renminbi fallacy
  March 15th, 2010 Author: Yiping Huang, Peking University and ANU Paul Krugman is one of the international economists I most respect. He is a towering figure in the study of international trade. But his understanding of some international economic policy issues is, to put it generously, naïve. In fact, were the Obama administration to follow his policy advice, the world economy could encounter more serious difficulties, if not another recession, in the years ahead. In the year 2010, Krugman suddenly found a new and passionate interest in China’s exchange rate policy. On 1 January, in his piece ‘Chinese New Year’, Krugman claimed that America had lost 1.4 million jobs because of the undervalued renminbi and, therefore, he endorsed trade protectionism against China. On 11 March, in another piece, ‘China’s swan song‘, he advised the Treasury Department to name China as a currency manipulator. And on 12 March, at an Economic Policy Institute event, in Washington, he said that global economic growth would be about 1.5 percentage points higher if China stopped restraining the value of its currency and running a trade surplus. [China confrontation] [Currency]
• Chinese President Hu Jintao reiterates support for North Korean leadership
  Associated Press Saturday, October 2, 2010; 5:45 PM BEIJING - China's president on Saturday welcomed North Korea's election of a new slate of Communist Party leaders and promised to maintain close ties - an expected but important affirmation by the North's principal ally. The comments were Hu Jintao's first on the new leadership since a key ruling-party conference in North Korea last week at which the youngest son of ruler Kim Jong Il was introduced to the world and given key posts, confirming speculation he was being groomed to eventually succeed his ailing 68-year-old father. Hu said China's Communist Party will work with North Korea's ruling party to "strengthen communication and coordination in regional and international affairs and continue endeavors for the region's peace, stability and common development," according to the state-run Xinhua News Agency. He was speaking during a meeting with a North Korean delegation. [China NK]
• China successfully launches 2nd lunar probe
  Source: Xinhua [07:54 October 02 2010] Comments Long March 3C rocket carrying China's second unmanned lunar probe, Chang'e II, lifts off from the launch pad at the Xichang Satellite Launch Center in southwest China's Sichuan Province, at 18:59:57 (Beijing time) on Oct. 1, 2010. Photo:Xinhua China launched its second unmanned lunar probe, Chang'e-2 on Friday, inaugurating the second phase of a three-step moon mission, which will culminate in a soft-landing on the moon. At 6:59:57 pm, the satellite blasted off on a Long March 3C carrier rocket from the Xichang Satellite Launch Center in southwest China's Sichuan Province.
• China’s Rise, the United States, and Asia’s Angst
  by Robert Sutter Robert Sutter [sutterr@georgetown.edu] is Visiting Professor of Asian Studies at the School of Foreign Service, Georgetown University, Washington DC. He recently completed consultations with officials and non-government opinion leaders in 15 Asian-Pacific cities. Americans interacting with officials and other experts in the Asia-Pacific region in recent weeks would be reassured that official and other expert opinion among US allies and associates seems to disagree with prevailing media commentary in these countries depicting the United States in decline and China emerging to challenge the US leadership in the region. [China rising] [China confrontation] [Decline]
• Kim Jong Il Greets Hu Jintao
  Pyongyang, September 30 (KCNA) -- Kim Jong Il, general secretary of the Workers' Party of Korea and chairman of the National Defence Commission of the DPRK, together with President of the Presidium of the Supreme People's Assembly Kim Yong Nam and Premier Choe Yong Rim on Thursday sent a message of greetings to Hu Jintao, general secretary of the Central Committee of the Communist Party of China and president of the People's Republic of China who is also chairman of the Central Military Commission of China, Wu Bangguo, chairman of the Standing Committee of the Chinese National People's Congress, and Wen Jiabao, premier of State Council of China, on the occasion of the 61st birthday of the PRC.
• A truer picture of China’s export machine
  China’s growth depends less on exports than conventional wisdom suggests. SEPTEMBER 2010 • John Horn, Vivien Singer, and Jonathan Woetzel Is China’s economic growth largely dependent on exports, or is it becoming more domestically led? That’s a question economists are vigorously debating—and an important one for policy makers and executives alike. An increasingly consumption- and investment-focused Chinese economy could improve the chances of more balanced trading relationships with developed economies. At the same time, businesses operating in China or planning to enter it could find greater opportunities as the economy accelerated its transition from a manufacturing center to a key consumer market. To shed light on this question, we developed a new way of measuring the role of export growth in China’s overall economic expansion. We found that exports have been a major driver, but not one as dominant as commonly believed. Indeed, there are clear signs that a shift toward domestically driven economic growth is well under way. The picture that emerges of the Chinese economy has implications for the growth and supply chain strategies of businesses in China and elsewhere. [Domestic demand]
• Hu Congratulates Kim Jong-il on Party Congress
  Hu Jintao Chinese President Hu Jintao has sent a congratulatory message to North Korean leader Kim Jong-il on his reelection as the Workers Party's general secretary at a party congress held Tuesday, China's official Xinhua news agency reported Wednesday.
• MOEA predicts record cross-strait trade
  The MOEA statistics show that cross-strait trade activities soared by 52.8 percent from last year to US$100 billion during the first eight months of 2010. (Photo: Huang Chung-hsin)Publication Date:09/30/2010 Source: Taiwan Today By Audrey Wang Trade between Taiwan and mainland China is expected to hit a record high in 2010 amid a gradual slowdown in the global economic recovery, the Ministry of Economic Affairs said Sept. 29. MOEA statistics showed that in the first eight months of the year, Taiwan’s total export-import activities with mainland China, including Hong Kong, soared by 52.8 percent from last year to US$100 billion, an all-time high for the same period. Mainland China remains Taiwan’s largest export market. It is also the market with which Taiwan enjoys the highest trade surplus. Cumulative exports and imports across the Taiwan Strait advanced by 42.4 percent and 58 percent, respectively, to reach US$76.29 billion and US$23.72 billion, record highs in both categories [Straits] [Trade]
• Language: groundswell forces a retreat by Chinese authorities
  N.Jayaram, 29 September 2010 Subjects:Culture Democracy and government China The people of Guangdong have managed to defend Cantonese as their prime time television language About the author N.Jayaram is an Indian journalist based in Hong Kong who has worked for Agence France-Presse and the Press Trust of India - for six years as its Beijing correspondent.Damage control seems to have been effective and the rumblings from the early July thunder have become faint reverberations. But that it was required at all shows the capacity of Chinese authorities to disregard their own and other countries’ history and ride roughshod over people’s preferences. It all started with a proposal aired by Ji Keguang, an official of a municipal-level advisory body, the Chinese People’s Political Consultative Conference, to use Putonghua (Mandarin) in place of Cantonese as the prime time television language in Guangzhou, capital of the southern Chinese province of Guangdong. The reasoning was that as Guangzhou would be hosting the 16th Asian Games from 12 November to 27 November, its television station could reach out to visitors through Putonghua broadcasts. [Fragmentation]
• China's future: Coercive, or benigh, or a bit of both?
  By Kang Hyun-kyung The latest Sino-Japan standoff, ignited on Sept. 7 when a Chinese fishing boat collided with Japanese Coast Guard vessels near disputed waters, has left analysts here with a burning question. Can the ongoing high-tense incident be used as a prism through which to preview China’s future foreign policy? Amid mixed opinions, many deem the way China has handled the situation could foreshadow how the rising global economic leader will react when facing a conflict of interests with neighboring nations, including South Korea. The China-Japan row taking place in the disputed maritime territory showed China was fully geared to make the most of all its political and diplomatic muscle and impose trade restrictions, if that was necessary to gain what it wanted. The speculation comes as tension between Japan and China still remains high even after the release of Zhan Qixiong, the Chinese fishing boat captain, after being held by Japan’s law enforcement authorities after the maritime collision. [China rising]

• President Ma reaffirms ROC sovereignty over Diaoyutais
  * Publication Date:09/29/2010 * Source: China Times President Ma Ying-jeou reaffirmed the ROC's sovereignty over the Diaoyutai islands Sept. 28. “The islands are part of ROC territory, and the government remains steadfast in protecting the rights of our fishermen operating in the surrounding waters,” Ma said during a dinner gathering with ruling Kuomintang lawmakers. The president also expressed approval of the Coast Guard Administration’s sending 12 vessels to protect a local fishing boat that headed to waters near the archipelago Sept. 14 as a demonstration of Taiwanese fishermen’s right to fish in the area. [Territorial disputes] [Japan]
• Who decides China’s policy on North Korea?
  Linda Jakobson, director at the Stockholm International Peace Research Institute ‘Zhonglianbu’ most influential in decision-making on Pyongyang By Sunny Lee BEIJING — China issued an unprecedentedly strong condemnation against North Korea in the aftermath of the North’s nuclear test in October 2006. Characterizing Pyongyang’s move as a “flagrant” (“hanran” in Chinese) act surprised even some Chinese experts on North Korea who couldn’t believe their foreign ministry would use such an “undiplomatic” term. It turned out that the term was not decided by the foreign ministry, but was given from “above,” according to a source familiar with the situation. “The foreign ministry had to use the term because it was the expression used by the top leadership, which was very angry about the North Korean nuclear test,” the source said. “The foreign ministry just carried out the instruction.” This episode begs the question of “who” in China then makes foreign policy decisions on North Korea. Although educated guesses lead us to think that matters concerning relations with “foreign” countries are supposed to be dealt with by the “foreign” ministry, outside observers for years have also speculated that China’s ministry may not be the main player in architecting the country’s major foreign policy on North Korea. “Based on my research, the senior Chinese leadership tends to listen more to the opinions of ‘Zhonglianbu’ pertaining to the matters on the Korean Peninsula,” said Linda Jakobson, director of the China and Global Security Program at the Stockholm International Peace Research Institute (SIPRI). “Zhonglianbu” stands for the International Department of the Central Committee of the Communist Party of China. The title is so long that even foreign scholars of China prefer to go by its shortened Chinese moniker. [China NK]
• Economic Daily News: Defuse demographic bombs
  2010/09/26 15:10:22 The administration has two financial bombs to defuse in the face of an increasingly graying society and a dwindling birth rate. The bomb of ever-rising expenditure for health and pension payments as a result of the aged and aging populations and that of shrinking revenues a [Ageing society]
• Three Faces of the New China
  By DAVID E. SANGER Published: September 25, 2010 UNITED NATIONS — In a blur of headlines over the past few days, Americans have been surprised with brief, seemingly contradictory glimpses of how China is wielding its newfound power. There was China the neighborhood bully, cutting off Japan’s access to rare-earth minerals unless Tokyo folded in a minor, but longstanding, territorial dispute. (The Japanese folded.) There was China the schmoozer, with its prime minister, Wen Jiabao, trying his hardest on Thursday to deflect President Obama’s pressure over the value of China’s currency — really a battle over whether jobs go to workers in Seattle or Shenzhen. The two leaders talked for two hours at the United Nations. The outcome was left unclear. And there was China the classic realist, opting for convenient inconsistency on sanctions against North Korea and Iran in efforts to balance its competing national interests. (The first is to engage the West on the Security Council. The others include securing oil and protecting a client-state from collapse.) In one sense, there’s nothing surprising about a rising power finding subtle ways to handle complex problems. But before China’s breakout from poverty to arguably the world’s No. 2 economy, its default position on foreign policy was to restate the principle of non-interference in other nations’ affairs and focus largely on its neighborhood. [China confrontation] [China NK] [Client]
• Taiwan welcomes China's remarks on missile withdrawal
  (update-2) 2010/09/24 16:49:07 Taipei, Sept. 24 (CNA) President Ma Ying-jeou has welcomed China Premier Wen Jiabao's Sept. 22 statement that missiles deployed by Beijing across the Taiwan Strait aimed at Taiwan will eventually be removed, one of Ma's aides said Friday. "It is a sign of goodwill from Beijing, evidence of the peaceful and steady development of bilateral ties and something we are glad to see, " said Joseph Chen, director-ge [Straits]
• Taiwan to bid for Guam military base project
  Publication Date:09/24/2010 Source: Taiwan Today By Audrey Wang Taiwan is seeking to take part in a military base relocation project in the U.S. territory of Guam through the Government Procurement Agreement, ROC President Ma Ying-jeou said Sept. 23. “Since Taiwan became a party to the GPA, it has been actively seeking to participate in the project to relocate American bases,” Ma said. He noted that Guam is the closest U.S. territory to Taiwan, and that Taiwan has many commercial ties to Guam, with two direct flights between the two every week. [Military expenditure] [Client]
• With Warning, Obama Presses China on Currency
  By DAVID E. SANGER Published: September 23, 2010 UNITED NATIONS — President Obama increased pressure on China to immediately revalue its currency on Thursday, devoting most of a two-hour meeting with China’s prime minister to the issue and sending the message, according to one of his top aides, that if “the Chinese don’t take actions, we have other means of protecting U.S. interests.” Related Text: Obama’s Remarks at the United Nations (September 24, 2010) U.S. Walks Out as Iran Leader Speaks (September 24, 2010) But Prime Minister Wen Jiabao barely budged beyond his familiar talking points about gradual “reform” of China’s currency policy, leaving it unclear whether Mr. Obama’s message would change Beijing’s economic or political calculus. [China confrontation] [Currency]
• Dispute with Japan highlights China's foreign-policy power struggle
  By John Pomfret Washington Post Staff Writer Friday, September 24, 2010; 1:54 AM The increasingly bitter dispute between China and Japan over a small group of islands in the Pacific is heightening concerns in capitals across the globe over who controls China's foreign policy. This Story Dispute with Japan highlights China's foreign-policy power struggle China increasing economic leverage by limiting 'rare earths' exports Video: China warns Japan over sea row A new generation of officials in the military, key government ministries and state-owned companies has begun to define how China deals with the rest of the world. Emboldened by China's economic expansion, these officials are taking advantage of a weakened leadership at the top of the Communist Party to assert their interests in ways that would have been impossible even a decade ago. [Resurgence]
• China’s Disputes in Asia Buttress Influence of U.S.
  BEIJING — For the last several years, one big theme has dominated talk of the future of Asia: As China rises, its neighbors are being inevitably drawn into its orbit, currying favor with the region’s new hegemonic power. The presumed loser, of course, is the United States, whose wealth and influence are being spent on the wars in Iraq and Afghanistan and whose economic troubles have eroded its standing in a more dynamic Asia. But rising frictions between China and its neighbors in recent weeks over security issues have handed the United States an opportunity to reassert itself — one the Obama administration has been keen to take advantage of. Washington is leaping into the middle of heated territorial disputes between China and Southeast Asian nations despite stern Chinese warnings that it mind its own business. The United States is carrying out naval exercises with South Korea in order to help Seoul rebuff threats from North Korea even though China is denouncing those exercises, saying that they intrude on areas where the Chinese military operates [China confrontation] [Decline] [Fragmentation]
• [News Briefing] N. Korea’s dependency on China on the rise
  North Korea’s commercial transactions with neighboring China are expected to account for 80 percent of the country’s total international trade this year, excluding Inter-Korean trade, a local think tank said Sunday. The report by the LG Economic Research Institute showed that with the exception of March, trade between North Korea and China has been steadily increasing and will be up 20 percent this year compared to the year before. The report stated, “The highest attention should be paid to actions to link China’s development project of northeastern three provinces (the Changchun-Jilin-Tumen River Pilot Development and Opening Zone) with North Korea’s development of the Rajin- Sonbong and Shinuiju Special Economic and Trade Zone.” [China NK] [Sanctions]
• Disputes in sea sparks anger, breakdown in China and Japan talks
  By William Wan Washington Post Foreign Service Monday, September 20, 2010; 12:54 AM BEIJING - The Chinese government suspended high-level exchanges with the Japan on Sunday after weeks of heated arguments between the two countries that began after a Chinese fishing boat collided with Japanese coast guard ships in disputed waters this month. The diplomatic wrangling is over custody of the Chinese boat captain, who is under arrest in Japan, but fueling the abundance of strong posturing is a struggle between China and Japan for regional dominance as well as long-standing disputes over territory. And the angry rhetoric, which has come more from the Chinese side than that Japanese side, is the latest indication that a newly assertive China is looking to flex its muscles on an international stage. [Resurgence] [Territorial disputes] [China Japan]
• China Suspected of Undermining Missile Proliferation Controls
  Monday, Sept. 20, 2010 A recent report by the U.S. Congressional Research Service cautions that China could be undermining international efforts to limit the spread of missile technology through its dealings with Iran, Pakistan and North Korea (see GSN, May 26). The Congressional Research Service report on conventional arms transfers to the developing world states that "credible reports persist in various publications that China has sold surface-to-surface missiles to Pakistan. North Korea and Iran have also reportedly received Chinese missile technology, which may have increased their capabilities to threaten other countries in their respective neighborhoods. [Arms sales] [China confrontation] [Double standards] [Chutzpah]
• Moon landing gets timetable
  Source: Global Times [02:06 September 20 2010] Comments By Song Shengxia The timetable for China's first manned moon landing, as well as the launch of a space station, lab and probes
  Ye proposed that China launch its first manned moon landing in 2025, a probe to Mars by 2013 and to Venus by 2015. [China rising]
• United States and China: Will positive relations endure?
  September 13th, 2010 Author: Robert Sutter, School of Foreign Service, Georgetown University Since the early years of the George W. Bush administration, US and Chinese leaders have endeavored to emphasise the positive aspects of the US-China relationship and to deal with their many differences out of the public limelight, mainly through the dozens of largely secret dialogues that characterise recent Sino-American relations. Barack Obama came to office with the unusual distinction of avoiding significant China related issues during his long presidential campaign.
  Commentators have warned that China has now reached a point of economic, military, and political power in Asia such that it is prepared to confront and challenge many aspects of US policy and practice in the region that it has long disagreed with. These observers view the US leadership position in decline because of economic difficulties and extensive military commitments in the Middle East and South Asia. Additionally, forces of ‘nationalism’ and behind-the-scenes maneuvers of Chinese leadership ‘factions’ seeking advantage by pushing a more assertive public stance against Washington are compelling Chinese leaders to adopt a tougher public posture toward the US. These assessments and pronouncements foretell a worrisome situation of greater instability in Asia as rising China confronts and challenges the United States on Taiwan, Tibet, trade issues, access to waters near China, and other sensitive issues. In contrast, this observer sees clear limits on how far China is prepared to go in pursuing a tougher posture toward the United States in Asia. [China US] [China US policy]
• Twenty-First Century Energy Superpower China, Energy, and Global Power
  By Michael T. Klare If you want to know which way the global wind is blowing (or the sun shining or the coal burning), watch China. That’s the news for our energy future and for the future of great-power politics on planet Earth. Washington is already watching -- with anxiety. Rarely has a simple press interview said more about the global power shifts taking place in our world. On July 20th, the chief economist of the International Energy Agency (IEA), Fatih Birol, told the Wall Street Journal that China had overtaken the United States to become the world’s number one energy consumer. [Energy] [Decline] [China rising]
• Comparing China’s Schools and Ours
  Published: September 18, 2010 Mark Allen Miller Re “Testing, the Chinese Way” (Week in Review, Sept. 12): Having just returned from a trip to China, which included visits to several public schools, I disagree with Elisabeth Rosenthal’s representation of Chinese educational goals. While it may be true that her children experienced a great deal of testing while attending a Beijing school, China is poised for a very different approach to education. With a delegation of educators from the United States and other countries, I had the opportunity to observe firsthand the classrooms and schools in both urban and rural settings. In our discussions with ministers of education, university professors, classroom teachers, students and parents, we found universal disdain for the amount and intensity of testing in what they call their “examination culture.” So distressed are the Chinese by the emphasis on testing that they have unabashedly resolved to aspire to education reforms that include more attention to creativity, encouraging students to attend to social action and a reduction of competitive tests. How ironic that just as America is “racing to the top” by unleashing another round of requirements for additional testing, our most significant world competitors are realizing the folly of such an emphasis in their schools. Arnold Dodge Merrick, N.Y., Sept. 12, 2010 The writer is chairman and assistant professor in the department of educational leadership and administration, Long Island University/C. W. Post Campus. [China competition] [Education]
• Germany seizes on big business in China
  By Anthony Faiola Washington Post Foreign Service Saturday, September 18, 2010; 3:50 AM VERL, GERMANY - As Americans fret over high unemployment and the prospect of another recession, an economic renaissance is putting Germans back to work and propelling the economy at a pace not seen since the fall of the Berlin Wall. This Story Germany seizes on big business in China How a touch of inflation could boost the economy Made in Germany, sold in China Consumer prices rise 0.3 percent in August Poll: What economic issue are you most concerned about? View All Items in This Story View Only Top Items in This Story Ask a German executive why, and you are likely to get the same one-word answer that slips like silk off Gunter Scheipermeier's tongue: "China." Vilified in the United States as a great sucking sound on the American economy, China is courted here as a revered client. Fast-growing demand from Asia's giant is helping to fuel the strong German recovery, and Germany now stands as proof that a rich nation can profit off China's rise.
  One thing is for sure: When it comes to building a healthy trading relationship with China, Germany is cooking America's goose. U.S. exports to the world's second-largest economy surged 25 percent in the second quarter of this year, but German sales to China grew twice as fast. Overall, German exports have jumped 17 percent this year, driven in large part by a 55 percent rise in China of imports. Although the United States still exports more to China in total dollar terms, adjusted for the size of their economies, Germany is now out-exporting the United States to China by a factor of three to one. [Decline] [China rising]
• Korean War spy rivalries persist 60 years later
  Far be it that the week should pass without noting that it was 60 years ago on Sept. 15 that allied troops under Gen. Douglas MacArthur pulled off one of military history’s greatest feats: a surprise landing behind North Korean lines on the Inchon Peninsula. Not satisfied with that, as historians also note, MacArthur then turned his triumph into a Shakespearean tragedy by driving his troops north to the Yalu River on China's border, supremely confident that Beijing would not react. It did, of course, in large numbers, dooming tens of thousands of U.S. and allied troops to cold, bitter deaths, not to mention his own command, in time. The CIA, in its infancy then, didn’t see the Chinese coming. [Intelligence]
• For currency control lessons read yen for Renminbi
  By Gillian Tett Published: September 16 2010 19:56 | Last updated: September 16 2010 19:56 A few days ago, I stumbled across an influential tome written two decades earlier by Taggart Murphy, a journalist-cum-banker, called The Weight of the Yen. It is wryly relevant today – though not in the way Murphy might have thought. When Murphy wrote his book, what was worrying many American policymakers – and some Japanese – was the weakness of the yen; most notably, during the 1970s and early 1980s the yen had been kept artificially low by government controls, running at around Y250-Y300 to the dollar. As a result, the Japanese export machine boomed, undercutting American industry; and Japanese investors gobbled up American debt, keeping US Treasury yields artificially low. Or, as Murphy wrote: “The causes of the imbalances were twofold: first the US Federal Deficit, which the Reagan Revolution had structurally embedded into the US body politic; and second the Japanese ‘development state’ system of national leverage, centralised credit allocation and credit risk socialisation.” These days, of course, the story has moved on – at least as far as Japan is concerned. This week the Tokyo government has been busily intervening to weaken its excessively strong currency, which hit Y82.88 earlier in the week. And American pundits are no longer fretting about “unfair” Japanese exports or bond purchases; instead, the country has largely moved off the US political radar screen. However, if you replace the word “Japan” with the word “China”, Murphy’s book creates a powerful sense of déjà vu. [currency]
• China rebuffs pressure on yuan
  Source: Global Times [03:54 September 16 2010] Comments By Li Qiaoyi and Guo Qiang China Wednesday rejected a charge of manipulating its currency amid what appears to be a fresh mounting wave of pressure from the United States for a stronger yuan before the midterm election in November there. "It is groundless for the US to criticize China's exchange rate policy simply according to the trade surplus alone," Yao Jian, spokesman with the Ministry of Commerce, said Wednesday at a news conference. [China confrontation] [currency]
• Brazil's huge new port highlights China's drive into South America
  Investments guarantee Chinese access to soy, oil and other badly needed resources
  (11)Tweet this (27)Tom Phillips in Sao Joao da Barra guardian.co.uk, Wednesday 15 September 2010 21.02 BST Article history The 'super port' in Sao Joao da Barra is the largest port investment in Brazil and will have capacity for the largest ships in the world. Photograph: Douglas Engle/Australfoto Blades slicing through the morning heat, the helicopter rose from the tarmac and swept into a cobalt sky, high above Rio's Guanabara Bay. It powered north-east over deserted beaches, dense Atlantic rainforest and fishing boats that bobbed lazily in the ocean below. Then finally, 80 minutes on, the destination came into view: a gigantic concrete pier that juts nearly two miles out into the South Atlantic and boasts an unusual nickname: the Highway to China. Dotted with orange-clad construction workers and propped up by dozens of 38-tonne pillars, this vast concrete structure is part of the Superporto do Acu, a £1.6bn port and industrial complex that is being erected on the Rio coastline, on an area equivalent to 12,000 football pitches. Reputedly the largest industrial port complex of its type in the world, Açu is also one of the most visible symbols of China's rapidly accelerating drive into Brazil and South America as it looks to guarantee access to much-needed natural resources and bolster its support base in the developing world. [China rising] [ODI] [China demand]
• Will China Help Modernize Russia?
  Dr. Alexander Salitski, an economist and the Chief Research Associate with the Institute of World Economy and International Relations of the Russian Academy of Science 16.09.2010
  Russian President D. Medvedev's visit to China will certainly help clarify in what international settings Russia is going to put into practice its declared modernization course. China's economic and political rise to which the economic downturn in industrialized countries added visibility is largely owed to Beijing's commitment to the strategy of modernization. The strategy which has over the past three decades successfully combined free market and state stewardship in the economy proved more efficient in the XXI century than fairly similar approaches adopted by other developing countries and the so-called countries with emerging markets. In the period of time, Chinese reformers managed to switch the economy into a completely new mode without provoking serious side effects linked to the transition. As noted by Indian economist R. Agarwala, China's progress in agriculture at the initial phase of the reform was made possible by implanting novel material incentives into the environment whose material basis had been created in the epoch of Mao Zedong (1). [Development strategy] [Domestic demand]
• U.S. Adopts Tougher Stance on China
  By SEWELL CHAN Published: September 15, 2010 WASHINGTON — The Obama administration is moving to take a harder stance on the Chinese government’s trade and currency policies, with anger toward China rising in both political parties ahead of midterm elections. Treasury Secretary Timothy F. Geithner, in separate hearings before House and Senate panels, plans to acknowledge on Thursday that China has kept the value of its currency, the renminbi, artificially low to help its exports and has largely failed to improve the situation as it promised to do in June. [China confrontation]
• Taiwan not siding with China on Tiaoyutai issue: MOFA
  2010/09/14 16:46:09 Taipei, Sept. 14 (CNA) The Taiwan government said Tuesday it is not siding with China in an incident involving the collision of a Chinese fishing boat and two Japanese patrol vessels in the area of the disputed Tiaoyutai Islands on Sept. 7. The presence of a boat carrying two Taiwanese activists in the area Monday was the result of "a spontaneous reaction by Taiwanese nationals" to make clear their opinion that Taiwan holds sovereignty over the Tiaoyutai Islands, [Straits] [Territorial disputes]
• Kim Jong-il's Heir 'Met Chinese President'
  Hu Jintao (left) and Kim Jong-un North Korean leader Kim Jong-il's son and heir apparent Jong-un met Chinese President Hu Jintao during a recent trip to China, North Korean sources claimed Friday. They said Jong-un, escorted by a team of three bodyguards, accompanied Kim senior on his China tour but traveled in a separate vehicle from his father and behaved as if he were a member of the entourage to avoid exposure to the press. Kim senior introduced his son to Hu and other Chinese leaders at a dinner in Changchun, Jilin on Aug. 27, the sources said. At the dinner, Kim senior was apparently in high spirits and drank more than a bottle of the Chinese white liquor maotai. Some members of his entourage also drank a lot, they added. It seems the Chinese leadership promised Kim senior to stand by the North as before when power is handed down to Jong-un. Meanwhile, sources said China drastically increased aid to North Korea since last year. In addition to free grants, China is persuading the North to conduct economic reform through economic cooperation. [Media] [Succession
• World economy: The China cycle
  By Geoff Dyer Published: September 12 2010 20:03 | Last updated: September 12 2010 20:03 Allied by alloys: a steel market in the Chinese privince of Hubei. As well as investing in fellow emerging nations' commodities, such as Brazilian iron ore, Beijing is increasingly investing in their infrastructure Deep in the Amazon jungle, huge chunks of red earth are torn out of the ground at Carajás, the biggest iron ore mine in the world, to be transported halfway round the globe to the steel mills on China’s eastern seaboard. There they are turned into the backbone for millions of tower blocks in hundreds of booming Chinese cities. Last year, China overtook the US to become Brazil’s biggest trading partner. The two large developing countries may be on opposite sides of the planet but their growing economic ties over the past decade have become among the enduring symbols of shifts in the global economy. The duo could also be forging a path for one of the potential biggest realignments in the global economy over the next decade. With little fanfare, China is likely to emerge as the biggest direct investor in Brazil this year, following a string of deals announced in mining, steel, construction equipment and electricity transmission. Such investments are part of a slow-burning but hugely important trend. Newly crowned the second-largest economy, eclipsing Japan, China is becoming the anchor for a new cycle of self-sustaining economic development between Asia and the rest of the developing world – one that is bypassing the economies of Europe and the US [China rising]
• China to loosen west’s grip on rail sector
  By Robert Wright Published: September 13 2010 03:18 | Last updated: September 13 2010 03:18 At Siemens’ train-making plant in Uerdingen, near Düsseldorf, engineers wear 3-D spectacles as they examine detailed projections of their company’s latest designs. The facility lets them rotate multi-dimensional projections of the train and its components to see how easily they can be maintained, how comfortable the driver will be and other minute details. Similarly impressive work is undertaken at General Electric’s main locomotive plant in Erie, Pennsylvania, where the company works to cut fuel consumption and develop hybrid, power-saving techniques. The world’s big-three passenger train manufacturers – Siemens, France’s Alstom and Canada’s Bombardier – along with GE and Caterpillar’s EMD Division, the dominant forces in diesel locomotives, have long bet advanced technology would keep them on top of the world’s rail supply market. All have transferred some technology to Chinese partners, largely trusting their designs will not be misused to develop other products. All argue that, while their products might cost more to buy than those from emerging economies, their superior technology makes them cheaper and more reliable. But the results of the latest rail market report commissioned by Unife, the European railway industry association, raise the possibility that the big manufacturers could lose market share to cheaper Chinese products. According to Peter Ulrich, the Boston Consulting Group partner who oversaw production of the report, the question for the big rich world manufacturers is no longer how they should position themselves in the Chinese market. “It’s also: ‘How do I position myself with the Chinese or against the Chinese outside China?’ ” Mr Ulrich says. The dilemma has already faced Siemens after it initially bid to supply high-speed trains for Saudi Arabia’s inaugural high-speed rail project – between Mecca and Medina – then instead decided to join a Chinese-led consortium
  But China’s suppliers face uncertainties. While there are many Chinese-built high-speed trains in China, all current models are based on European or Japanese technology, and under the technology transfer agreements, exported trains must be new and cannot be based on this [Railways] [China rising]
• China Says N.Korean Succession Is Internal Matter
  The Chinese government says North Korea's leadership succession is an "internal matter." When asked by a Japanese reporter how China views the planned handover of power in North Korea from Kim Jong-il to his third son Jong-un and whether it has moved away from its traditional disapproval of hereditary succession in socialist countries, Chinese Foreign Ministry spokesman Jiang Yu told reporters, "This is entirely an internal matter for North Korea." That is what Beijing usually says when dealing with sensitive international issues. [Succession] [China NK] [Takeover] [Legality]
• Chinese Money Flows into Korea
  Chinese capital is flowing into Korea in a reversal of the traditional direction, with Chinese investors snapping up Korean sovereign bonds and a growing number of Chinese companies listing themselves on the Korea Exchange [China rising] [ODI]
• Korea, Other Asian 'Middle Powers' Seen Asserting Themselves
  "Middle powers" in the Asia-Pacific region like Korea, Indonesia and Australia are drawing together in an effort to hold emerging superpower China in check, the International Institute for Strategic Studies said in an annual report Tuesday. The British think tank said these countries seem to be interested in forms of "middle-power consultation" to defend their interests in a "multi-polar Asia," with some like Vietnam and Australia increasing their defense budget. [China confrontation] [Client] [US global strategy]
• Distracted US too busy to tackle China
  Source: Global Times [22:54 September 08 2010] Comments By Ding Gang Some analysts have claimed that after the US withdraws from Iraq, it would be ready to deal with China. It sounds reasonable because since World War II the US has always looked for a main opponent. But this view is misleading. After all, the US war on terror is not over. The war in Afghanistan is not over and the main enemy is still terrorism. US forces withdrew, but the terrorists did not. Washington also values the economy above all else. Today the US economy has become closely linked with the world economy, and especially with the emerging economies. The US economy cannot be improved without an improving world economy. In these two aspects, the US clearly remains dependent on the support of China. [China confrontation] [US global strategy] [Decline]
• DPRK Pavilion Day Celebrated Shanghai Expo
  Pyongyang, September 7 (KCNA) -- An event observing the day of the DPRK pavilion of Expo 2010 Shanghai China was held on Monday.
• China makes its North Korea move
  By Peter Lee The Barack Obama administration's policy of "strategic reassurance" vis-a-vis China appears to be yielding its first fruits - the profoundly unreassuring image of President Hu Jintao clasping Kim Jong-il's hand in Changchun and, very probably, heralding the survival of the sclerotic North Korean regime into its third generation. [US NK policy] [China NK] [Cheonan]
• China’s Soft Power v America’s Smart Power
  August 31st, 2010 Author: Carlyle A. Thayer, UNSW@ADFA If China has made the running in Southeast Asia on the basis of soft power over the last decade, the tide now seems to be turning and the United States is re-engaging with smart power. [Soft power] [China confrontation]
• N.Korea, China Promote Business in Border Area
  North Korea and China are already starting economic cooperation projects in the border area across China's northeast and the North's Rajin-Sonbong region. The Chinese Ministry of Transport recently designated Jilin Province as a pilot region for international trade and logistics encompassing the three northeastern provinces of China and the Duman (or Tumen) River area, the China Shipping Gazette reported last Friday. [China NK]
• China and the cult of 'celebrity' advertising
  See 'Princess Diana' playing the cello in her underwear . . . Tania Branigan guardian.co.uk, Sunday 5 September 2010 20.00 BST Article history 'Princess Diana' as you have never seen her before. Photograph: Tim Stewart News/Rex Features Even in the paparazzi gym-and-swimwear shots, Diana never appeared quite like this: playing the cello clad only in bra and knickers (and regal tiara). "Feel the romance of British royalty – Diana underwear," reads the poster from China's splendidly named Jealousy International brand. Inspect it closely and the woman is, of course, a lookalike. But while the advert prompted censure in the UK, it caused hardly a ripple in China, where improbable celebrity "endorsements" have a long, if not distinguished, pedigree. [Media] [Double standards]
• If Only China Were More Like Japan
  China is heading toward a Japanese-style economic debacle, says columnist John Lee, who warns that the process won't be as gradual or peaceful By John Lee Insight August 31, 2010, 8:39AM EST text size: TT Now that China has officially overtaken Japan as the world's second-largest economy, there is growing speculation by influential Chinese and U.S. economists, such as Wu Jinglian and John Makin, that China will soon endure its own "lost decade" as it suffers a Japanese-style malaise. The idea that contemporary Japan offers a glimpse of China's economic future is credible, given similarities in the two growth models. But Japan's economic decline has at least been a gradual and comfortable one for the Japanese people and government. For the Chinese Communist Party and the nation's people, following in Japan's footsteps would likely be much more traumatic. Before there was conclusive proof that Japan was in an extended period of stagnation, some economists were warning about the dangers of over-reliance on exports and fixed investment to drive growth. [Domestic demand] [China rising]
• China and US stage Yellow Sea war games
  By Kathrin Hille in Beijing Published: September 3 2010 13:49 | Last updated: September 3 2010 13:49 China and the US have been staging near-simultaneous naval exercises this week in the oceans around the Yellow Sea in one of the most open displays of the rising competition between the two rival forces in north Asia. The Chinese navy’s North Sea Fleet is practising shooting artillery in waters south-east of Qingdao until Saturday, while the US and South Korea are scheduled to hold a joint exercise in the Yellow Sea from Sunday. While the US war games are intended as a show of force towards North Korea, Beijing’s latest exercises illustrates a pattern of increasing assertiveness on the part of its military, especially its navy experts say [China confrontation] [Cheonan] [Pretext] [Inversion] [Resurgence] [Buildup]
• Hu Jintao 'Declined Invitation to N.Korea'
  North Korean leader Kim Jong-il had hoped to see Chinese President Hu Jintao in Pyongyang for a summit rather than visit China again last week, a source claimed Thursday. Hu had accepted the invitation during Kim's last visit in May but decided such a visit would send the wrong signal amid international sanctions against the North after it sank the South Korean Navy corvette Cheonan. [China NK] [Media]
• NK, China bolster military ties
  By Kim Young-jin Kim Yong-nam, North Korea’s number two leader, vowed Wednesday to deepen military ties with Beijing, less than a week after the heads of the two countries agreed to upgrade their bilateral relationship, China’s official Xinhua News Agency reported. According to the report, Kim, presidium of the Supreme People's Assembly, made the pledge to a delegation from the People’s Liberation Army as he highlighted the “traditional DPRK-China friendship.” "In the future, North Korea will deepen cooperation with China in all areas, and also make efforts to strengthen cooperation between our two militaries," he said. [China NK]
• China calls for compromise on NKorea talks
  The Associated Press Thursday, September 2, 2010; 6:10 AM BEIJING -- China called Thursday for a compromise among the parties to talks aimed at disarming North Korea's nuclear program in order to get the negotiations back on track. China hosted the six-nation talks before North Korea walked away from them last year in protest over the international condemnation that followed its testing of a long-range missile. [Six Party Talks]
• GIO minister reaffirms ROC sovereignty over Spratlys
  GIO Minister Johnny Chi-chen Chiang comments on reports that Taiwan and mainland China could build an artificial island in the South China Sea. (CNA) •Publication Date:09/02/2010 •Source: Taiwan Today •By Elaine Hou The ROC government reaffirmed sovereignty over the Spratly Islands in response to a report by a Hong Kong magazine that Taiwan and mainland China could build a jointly-run airport in the disputed archipelago. According to the Mirror, mainland Chinese military experts have urged Taiwan to engage in a cross-strait project to build an artificial island on which the airport can be built. In response, Government Information Office Minister Johnny Chi-chen Chiang said the feasibility of such a project would have to be carefully deliberated upon before a decision could be made. “Any decision we make will be in the best interests of the people of Taiwan.” The artificial island would extend from Taiping Island, and on the island an airport would be built which could increase the island’s military value, by providing a place where planes based on aircraft carriers can land. Island groups in the South China Sea, a region rich in oil deposits and marine life, are claimed either entirely or in part by Brunei, mainland China, Malaysia, the Philippines, the ROC and Vietnam. The ROC respects the basic principles of international law, Chiang said. It is not opposed to dialogue that will help solve the disputes revolving around the islands and will promote the peaceful development of the region. When it comes to the Nansha Islands, Chiang added, the ROC will be guided by four basic principles it has stated on many occasions: “safeguarding sovereignty, shelving disputes, peace and reciprocity and joint exploration.” These principles apply to the Shisha Islands, the Chungsha Islands and the Tungsha Islands as well, Chiang said. (HZW) [Straits]
• LEE VIEWS N.K. LEADER'S TRIP POSITIVELY
  Yonhap (Lee Chi-dong, , Seoul, 2010/08/31) reported that ROK President Lee Myung-bak gave a positive assessment Tuesday of DPRK leader Kim Jong-il's trip to the PRC, saying it must have allowed the leader to witness for himself the rapid economic growth of the PRC. "I positively evaluate that Chairman Kim frequents China," Lee said during a Cabinet meeting, according to presidential spokeswoman Kim Hee-jung. "I see China's role positively as well," the president added. Cheong Wa Dae said Seoul's ambassador to Beijing was debriefed from the Chinese side on the results of the latest Hu-Kim summit. [Spin] [China NK]
• Hu 'Told Kim Jong-il It's Time for Economic Reform'
  Chinese President Hu Jintao told North Korean leader Kim Jong-il in strong terms to reform the North's failed socialist economy and open up the country, a senior South Korean government official said Wednesday. He made the call during a meeting when Kim visited China last week, using rather more direct terms than Chinese Premier Wen Jiabao had used during Kim's last visit in May, according to the official. Wen told Kim, "I'd like to introduce to you China's experience in the reform and opening drive." But the official quoted Hu as saying, "Socialist modernization is based on China's three-decade-long experience in reform and opening. Although self-reliance is important, economic development is inseparable from external cooperation." [China NK] [Media] [Opening] [Inversion]
• China Starts Live-Fire Drill in West Sea
  The Chinese Navy's North Sea Fleet on Wednesday started a live-fire drill in waters southeast of Qingdao, the official Xinhua news agency reported. The drill will come to an end on Saturday, one day before a South Korea-U.S. naval exercise starts in the West Sea. [Joint US military] [Resurgence] [China confrontation]
• Kim Jong Il Pays Unofficial Visit to China
  Pyongyang, August 30 (KCNA) -- General Secretary Kim Jong Il paid an unofficial visit to the People's Republic of China from August 26 to 30 at the invitation of Hu JIntao, general secretary of the Central Committee of the Communist Party of China and president of the PRC. He was accompanied by Kim Yong Chun, vice-chairman of the NDC and minister of the People's Armed forces of the DPRK, Kim Ki Nam, secretary of the C.C., the WPK, Thae Jong Su, department director of the C.C., the WPK, Kang Sok Ju, first vice-minister of Foreign Affairs, Jang Song Thaek, Hong Sok Hyong, Kim Yong Il and Kim Yang Gon who are department directors of the C.C., the WPK, Choe Ryong Hae, chief secretary of the North Hwanghae Provincial Committee of the WPK, Kim Phyong Hae, chief secretary of the North Phyongan Provincial Committee of the WPK, and Pak To Chun, chief secretary of the Jagang Provincial Committee of the WPK. The party and state leaders and people of China warmly welcomed Kim Jong Il, who visited China again, and accorded with utmost sincerity cordial hospitality to him. [China NK]
• Speech of Kim Jong Il at Banquet
  Pyongyang, August 30 (KCNA) -- Following is the speech of General Secretary Kim Jong Il at the banquet: Esteemed Comrade General Secretary Hu Jintao, Dear Chinese comrades, I am very pleased to visit China again after nearly four months at the warm invitation of you Comrade general secretary and have a significant meeting with you. I, above all, would like to express heartfelt thanks to you for having come to Jilin Province, far away from Beijing, to entertain us to this grand banquet and make a friendly speech just before.
• Speech of Hu Jintao at Banquet
  Pyongyang, August 30 (KCNA) -- Following is the speech of Hu Jintao, general secretary of the Central Committee of the Communist Party of China and president of the People's Republic of China, at the banquet: Esteemed Comrade General Secretary Kim Jong Il, Dear comrades from Korea, I, first of all, would like to warmly welcome the China visit of you, general secretary of the Workers' Party of Korea and chairman of the National Defence Commission of the DPRK, on behalf of the Chinese party, government and people. Your two visits to China in less than four months are enough to show that you have attached a great importance to steadily consolidating and developing the traditional Sino-Korean friendship.
  Just before, we made an in-depth exchange of views in a pleasant and outspoken atmosphere on crucial matters concerning the bilateral relations and those of mutual interests. [China NK]
• China pushes six-party talks with North Korea, but others remain sceptical(sic)
  By Chico Harlan Washington Post Foreign Service Wednesday, September 1, 2010 TOKYO - China is in the midst of a sales pitch. It is pushing for the resumption of six-party talks, the process concocted seven years ago to end a North Korean nuclear program that has not yet ended. This time, Beijing says North Korean leader Kim Jong Il is onboard. And in recent days, China has sent its nuclear envoy to South Korea and Japan, touting the six-party idea to Washington's closest Asian allies. On Wednesday, he will visit Washington for a meeting at the State Department. According to officials in Washington, Seoul and Tokyo, China has emerged as the driving force pushing to restart the talks, which Beijing sees as the best way to maintain security and status quo on the Korean Peninsula. China has proposed a three-step process that calls first for bilateral talks between North Korea and the United States, perhaps in Beijing, Pyongyang or New York. [Bilateral] [Six Part Talks] [China confrontation] [Spin]
• ECFA Expected to Usher In Greater Prosperity and Peace
  Byline:PAT GAOPublication Date:09/01/2010 The signing of a landmark trade pact with mainland China is expected to help Taiwan become an Asia-Pacific trade and investment hub as well as contribute greatly to world peace. After four arduous rounds of negotiations that started in January this year, a landmark trade pact between Taiwan and mainland China was signed on June 29 in the southwestern mainland city of Chongqing. Once implemented, the Economic Cooperation Framework Agreement (ECFA) is expected to help institutionalize and normalize trade relations between Taiwan and mainland China. The agreement is also notable because it is likely to further boost economic integration, both in Asia and worldwide. In an interview with Taiwan’s Central News Agency in early July this year, for example, World Trade Organization (WTO) Director-General Pascal Lamy said that ECFA would considerably improve cross-strait relations and help to integrate Taiwan further into the world economy. [FTA] [Straits] [Globalisation] [Spin]
• China Keeps Purse Strings Tight During Kim Jong-il's Visit
  It appears North Korean leader Kim Jong-il returned once again empty-handed from a trip to China that ended Monday, despite the warm hospitality he enjoyed there. Neither the North Korean nor the Chinese press mentioned aid when they reported on Kim's latest tour of China's northeastern region. This is the second time this year Kim, whose country is in dire economic straits due to international sanctions and a botched currency reform, has failed to win substantial Chinese support, a South Korean government official said. [Sanctions] [China NK]
• China 'Has More Warships than U.S.'
  China overtakes the U.S. in the number of warships, a British weekly said, quoting a report by the International Institute for Strategic Studies. The Economist on Tuesday said the IISS "reckons China now has more warships than America, which long possessed the biggest fleet. As it can be hard to distinguish a warship from other boats, the IISS uses its own definition of what counts and what does not." According to the IISS, Russia had the largest fleet from 1971 to 1996, the U.S. from 1997 to 2006, and now China since 2008. "This striking trend is yet another manifestation of the rise of China," the weekly added. [Military balance] [Media] [MISCOM] [Spin] [China confrontation]
• China Hints at N.Korean Guilt in Cheonan Sinking
  Xu Jialu A senior Chinese government official has for the first time hinted that Beijing believes North Korea was responsible for the sinking of the South Korean Navy corvette Cheonan. Just after North Korean leader Kim Jong-il wrapped up his visit to China, Xu Jialu, vice chairman of the Standing Committee of the National People's Congress, was quoted by participants at a leaders' forum in Seoul as saying in a speech Tuesday, "Even China is concerned about North Korea's Cheonan incident and is well aware of the fact that it hinders peace and stability on the Korean peninsula." "We mean this sincerely," they quoted him as adding.
  Prof. Ahn In-hae of Korea University, who attended the forum at the Millennium Hilton in Seoul, said he took the phrase "North Korea's Cheonan incident" to mean "an incident committed by North Korea.'" After the address, Ahn asked Xu, "Do your comments mean that China acknowledges North Korea's role in the Cheonan incident?" But Xu neither confirmed nor denied the question, apparently mindful of the diplomatic repercussions. [Cheonan] [Media]
• Strong relations with N.Korea strengthen China’s regional influence
  Chinese newspapers have reported that China could encourage N.Korea to adopt liberalization and openness policies By Park Min-hee Beijing Correspondent “Stable North Korea Relationship Most Advantageous to China.” This was the title of an editorial on Chinese edition published by the Chinese state-run “Global Times” newspaper on Aug. 30, when news of a summit meeting between Chinese President Hu Jintao and North Korean National Defence Commission Chairman Kim Jong-il was made public. The same newspaper went on to publish an editorial on Aug. 31, which stated that the world should encourage North Korea to initiate reform and openness policies. The editorial emphasized that the liberalization and opening up in North Korea was advantageous for strategically easing tension in Northeast Asia, and was an important key to resolving the state of conflict on the Korean peninsula. [China NK]
• Attention focusing on China’s role in inter-Korean relations
  Experts say China has the most influence over N.Korea for returning to six-party talks and easing tension on the Korean peninsula By Lee Je-hoon, Staff writer The situation in Northeast Asia, including the Korean Peninsula, remains turbulent. Immediately following the announcement by North Korea and China of the results of the summit between North Korean leader Kim Jong-il and Chinese President Hu Jintao, the U.S. government officially announced additional sanctions on North Korea on Monday (local time). It seems the U.S. government has responded to the announcement by the North Korean and Chinese leaders of “strengthening friendly cooperation between North Korea and China” with a continuation of sanctions and pressure. [US NK policy] [China confrontation] [Six Party Talks]
• KIM JONG-IL'S CHINA VISIT 'HASTILY ARRANGED'
  Chosun Ilbo (Seoul, 2010/08/31) reported that DPRK leader Kim Jong-il's latest visit to the PRC seems to have been arranged hastily at an abrupt request from Pyongyang, a diplomatic source in Beijing said. During Kim's latest visit, the PRC appears to have accorded him unprecedentedly warm hospitality, with President Hu Jintao staying at the same hotel as Kim after their summit on Saturday and regional leaders throwing a dinner party. But there is speculation that Kim's talks with Hu were not substantial.
• Reading Between the Lines of Kim's Secret China Trip
  Just before Beijing officially confirmed Monday the open secret that North Korean leader Kim Jong-il and Chinese President Hu Jintao met over the weekend, China's state-run Xinhua news agency carried a quirky response from Chinese authorities about whether Kim's son and heir apparent Jong-un accompanied his father, saying the younger Kim was "not on the guest list." The diplomatic community in Beijing interpreted the response two different ways. The first was that China and North Korea agreed not to mention the name of Kim's heir according to practices observed in both countries. The other is that Jong-un really did not accompany his father. [Succession] [China NK]
• Why Kim Jong-il Still Gets a Warm Welcome in China
  North Korean leader Kim Jong-il has received surprisingly warm hospitality in China whenever he visited. Whether bilateral relations are good or bad, he is always being received by the Chinese Communist Party's general secretary -- twice by Jiang Zemin and three times by President Hu Jintao. In 2004, 2006 and in May this year, all nine members of the Presidium of the Politburo met with Kim together or separately, a red-carpet welcome accorded no other foreign leaders. On Kim's second visit in January 2001, then premier Zhu Rongji traveled all the way down to Shanghai to escort Kim on his tour of the Pudong District, drawing attention from all over the world. At the time, although he privately disparaged China's reform and opening as "revisionism," Kim officially praised development in Shanghai to acknowledge the warm hospitality he was given, experts speculated. Beijing-Pyongyang ties are more brittle than they were in the days of North Korea's founder Kim Il-sung, and Chinese diplomats privately say the North is a headache with its constant provocations and refusal to reform. But Chinese leaders still roll out the red carpet for Kim since they are apparently worried that tension could heighten on the Korean Peninsula if their country's relations with the North go sour, and because they need the North as a bargaining chip with the U.S. and the Western world in general. This time too, Kim was the guest of honor at a dinner for about 200 guests and apparently met Hu in Changchun. [China NK] [Media] [Sidelined]
• China to Hold Live-Fire Naval Drill in West Sea
  The Chinese Navy will conduct training in the West Sea using live ammunition from Wednesday to Saturday, China's Ministry of Defense said Sunday. Beijing said the naval exercise will be held off the coastal city of Qingdao ahead of joint anti-submarine drills planned by South Korea and the U.S. in the West Sea in September. China has voiced strong opposition against the naval drills on its own doorstep and threatened its own war games in response. But China's Defense Ministry said the drill is "an annual routine" mainly involving the firing of shipboard artillery. Meanwhile, Admiral Robert Willard, commander of the U.S. Pacific Command, during a visit to Japan last week said China's anti-ship ballistic missile, known as the "carrier killer," is close to becoming operational. According to Hong Kong's South China Morning Post, Willard said the weapon, which "has undergone repeated tests" is "probably close to being operational." But he added, "We have not allowed the development of these capabilities and capacities to deter our right to navigate in international waters in areas around China." Hong Kong and Chinese media reported that China has built two strategic missile bases in Guangdong Province and plans to deploy the state-of-the-art Dongfeng-21C and Dongfeng-21D missiles there soon. The Dongfeng-21D, which has a longer range than the 1,800 km Dongfeng-21C, would place 70 percent of the South China Sea within its reach, which includes disputed areas. [Resurgence] [Military balance]
• Inter-Korean relations remain tense during Kim’s China visit
  Experts say attention is focusing on the WPK’s meeting of representatives, expected to be a major variable in inter-Korean relations
  By Lee Je-hoon North Korean leader Kim Jong-il reportedly arrived at Harbin, Northeast China's Heilongjiang Province, and inspected its industrial facilities on Saturday, the third day of his visit to China. It appeared that Kim’s personal train left Harbin, heading for home through the city of Tumen in China’s Yanbian Korean Autonomous Prefecture. Despite Kim’s visit to China, experts speculate that no major changes in the currently tense situation on the Korean Peninsula, with North Korea and China facing off against South Korea, the United States and Japan will occur. Most government officials and experts say the current situation will neither improve nor worsen. However, experts predict some short term reactions as a result of Kim’s visit to China. First, a South Korean official said Sunday that the U.S. government will announce plans for additional sanctions on North Korea early this week. Experts say the additional sanctions will not result in any long-term impact, but will still result in controversy from North Korea’s expected objections.
  A former high-ranking security and diplomacy figure said, “It is very possible that after the November mid-term elections, the United States will begin to move toward negotiations and a compromise will be reached between Washington and Beijing(sic).” [US NK policy] [Domestic] [China confrontation]
• North Korea Confirms Leader’s Trip to China
  By MICHAEL WINES Published: August 30, 2010 BEIJING —North Korea’s leader, Kim Jong-il, has left China after completing a secretive five-day visit that included a meeting on Friday with China’s president, Hu Jintao, state news agencies in both nations reported Monday evening. China’s state-run Xinhua news agency said Mr. Kim expressed hope during the meeting that six-party talks would resume over dismantling North Korea’s nuclear weapons program and easing tensions on the Korean Peninsula.

• Mystery Surrounds Kim Jong-il's China Trip
  Ailing North Korean leader Kim Jong-il has not lost his ability to baffle the world, embarking on a surprise trip to China the same day former U.S. President Jimmy Carter arrived in Pyongyang at the North's invitation. The trip was unusually abrupt. A South Korean security official on Thursday pointed out that Kim usually sends an advance party ahead to plan his China visits, and that this visit comes a mere three months after his last one. Experts believe Kim is trying to consolidate the succession of his son Jong-un (26) with the visit. [Health] [Succession]
• N. Korean Leader Holds Talks With Chinese Pres.
  AUGUST 28, 2010 12:39 North Korean leader Kim Jong Il reportedly held talks Friday with Chinese President Hu Jintao on the second day of his surprise trip to China. Kim is known to have been accompanied by his youngest son and heir apparent Jong Un. A number of diplomatic sources said Hu, who was staying in northeastern China, went to Nanhu Hotel in Jilin Province for talks with Kim Jong Il.
• Experts link Kim’s trip to economic development
  The path of Kim’s trip reportedly includes business hubs in Northeast China By Park Min-hee Beijing Correspondent “The fact that he has visited China twice this year is a ‘Northern Tour’ showing his determination to achieve economic development.” This was the explanation given by a foreign affairs source in Beijing on the North Korean leader Kim Jong-il’s consecutive stops in the cities of Jilin and Changchun in northeast China's Jilin Province, in his second visit to China in three months. Both are central cities in the Changchun-Jilin-Tumen River Pilot Development and Opening Zone, which China has been actively pursuing at the central government level since last year. The source’s interpretation is that the visit symbolizes Kim’s determination to ride the tide of China’s northeast China development in order to develop North Korea’s economy. Kim previously discussed linking northeast Chinese development with North Korea’s economic development at a May meeting with Chinese President Hu Jintao and Prime Minister Wen Jiabao. By paying visits to key cities in the Pilot Development and Opening Zone during his second stop in China in three months, he showed that linking the development of China’s three northeastern provinces with North Korea’s economic development is now the focus of North Korea-China relations. [China NK] [Context] [Agency]
• Kim Jong-il may have met with Hu Jintao, sources say
  Experts have raised N.Korean leadership succession and economic development as possible goals of Kim’s trip
  By Lee Je-hoon, Staff writer North Korean leader Kim Jong-il reportedly spent Friday, the second day of his visit to China, in Changchun, the capital of Jilin province. Arriving in Changchun by car in the morning, Kim and his party’s visit has been conducted in extreme secrecy. After entering the Nanhu Hotel, they did not appear to leave, and have revealed no clues about to their whereabouts. Chinese leader Hu Jintao appeared to have make a sudden visit to Changchun to meet with Kim.
• Kim Jong-il in Surprise Trip Down Memory Lane in China
  North Korean leader Kim Jong-il has abruptly embarked on his sixth visit to China since he took power, this time probably with his third son and heir apparent Jong-un. He crossed the border at Manpo railway bridge over the Apnok (or Yalu) River bound for Jian in China's Jilin Province. This is Kim's second visit to China this year.
  Kim then took a limousine to visit Yuwen Middle School, by the side of the Songhua River to the south of the city, which his father Kim Il-sung attended from 1927 to 1930. North Korean and Chinese leaders visit the school whenever they stop over in the city. He stayed for about an hour
• N. Korean leader arrives in Chinese industrial city on second day of surprise trip
  Yonhap (Beijing/Jilin, 2010/08/27) reported that DPRK leader Kim Jong-il arrived in a PRC industrial city Friday. A convoy of some 30 vehicles, believed to be carrying the reclusive leader, arrived at the South Lake Hotel in the northeastern Chinese city of Changchun, about an hour and a half after leaving the nearby city of Jilin. Kim's stay in Changchun is expected to include a tour of advanced industrial facilities. On Thursday, Kim paid a visit to Jilin's Yuwen Middle School, which his father and national founder, Kim Il-sung, attended for two and a half years starting in 1927. Kim also visited Beishan Park in the city of Jilin where the remains of anti-Japanese independence fighters are buried.
• CHINA TELLS US NOT TO SELL RADARS
  Agence France-Presse (Beijing, 2010/08/27) reported that the PRC on Friday called on the United States to revoke export licences granted to US firms selling radar equipment to Taiwan. US State Department spokesman Philip Crowley said this week the move would 'allow the commercial export to Taiwan of defence services, technical data, and defence articles to support Taiwan's existing air defence radar system'. In Beijing, foreign ministry spokeswoman Jiang Yu responded: 'China firmly opposes the United States selling weapons and relevant technical assistance to Taiwan.' 'We urge the United States... to revoke their wrong decision and put an end to arms sales to Taiwan and military ties with Taiwan to avoid causing new harm to Sino-US ties,' she said. [Arms sales] [China confrontation]
• Taiwan, China stage largest-ever joint raid on fraud rings
  2010/08/25 19:11:36 Taipei, Aug. 25 (CNA) Taiwan and China police nabbed 450 suspects Wednesday in the largest-ever joint crackdown on fraud rings operating on the both sides of the Taiwan Strait, according to Taiwan police. [Straits]
• U.S. confirms approval of three arms sales to Taiwan
  2010/08/25 18:04:11 Washington, Aug. 24 (CNA) The U.S. Department of State confirmed Tuesday that it had notified Congress of its decision to allow U.S. companies to sell Taiwan defense articles and services to support and upgrade its existing air defense
  He further said the authorizing of the export licenses is fully consistent with Washington's "one China" policy based on three U.S.-China joint communiques and the Taiwan Relations Act. Asked whether the latest arms sales to Taiwan will draw strong protests from [Arms sales] [China confrontation]
• TENSIONS HIGH AS S.KOREA-CHINA RELATIONS MARK 18 YEARS
  Hankyoreh (Park Min-hee, , Beijing, 2010/08/24) reported that Beijing sources familiar with the PRC-ROK relationship have recently been saying there are even indications that senior foreign affairs officials have been dodging meetings with Yu Woo-ik, ROK ambassador to the country. Recently, proper discussions of sensitive issues are reportedly not taking place at all. "Recently, if you meet the Chinese elder statesmen, they all say 'no comment' when asked about the two countries' relations," said one figure who has developed close friendships with Chinese people over a long period of doing business in the country. "Chinese people sense that South Korea has been pressuring the country through the strength of its 'Big Brother' the United States since the Cheonan sinking, and they are angry about it." [China confrontation] [Lee Myung-bak]
• Can China Overtake U.S. as World's No. 1 Economy?
  After the news that China has pulled ahead of Japan to become the world's second largest economy, experts are now speculating on when it might dethrone the U.S. to take the No. 1 spot. Nomura Securities forecasts China could achieve the feat in less than a decade. Nobel Prize-winning economist Robert Fogel of the University of Chicago predicts that China will account for 40 percent of the world's GDP by 2050, and the U.S. a meager 14 percent. But other experts say fears of Chinese hegemony are exaggerated as the country's rapid economic growth will soon hit its limits. Forbes magazine issued a report on Tuesday that looks at "five reasons why the U.S. can stay ahead of the Middle Kingdom." [China rising] [Decline]
• The China Syndrome
  Joel Kotkin, 08.24.10, 10:00 AM EDT
  Five reasons why the U.S. can stay ahead of the Middle Kingdom.
  China's ascension to the world's second-largest economy, surpassing Japan, has led to predictions that it will inevitably snatch the No. 1 spot from the United States. Nomura Securities envisions China surpassing the U.S.' total GDP in little more than a decade. And economist Robert Fogel predicts that by 2050 China's economy will account for 40% of the world's GDP, with the U.S.' share shrinking to a measly 14%. Americans indeed should worry about the prospect of slipping status, but the idée fixe about China's inevitable hegemony--like Japan's two decades ago--could prove greatly exaggerated. Countries generally do not experience hyper-growth--the starting point for many predictions--for long. Eventually costs rise, internal pressures grow and natural limitations brake and can even throw the economy into reverse. Instead the U.S. has a decent chance of remaining the world's pre-eminent economy not only over the next decade or two and even by mid-century. There are five key reasons for this contrarian conclusion. [China rising] [Decline]
• N.Korean Leader Apparently Traveling to China
  South Korean government officials says they believe North Korean leader Kim Jong-il has left his country on a visit to China. The unnamed officials confirmed earlier reports by South Korean news outlets that Kim was heading to China on a rare visit. YTN television reports Kim's son, Kim Jong-un, is traveling with his father. The North Korean leader is heading to China a day after former U.S. President Jimmy Carter arrived in Pyongyang to win the release of an American man who has been imprisoned in the isolated regime since January. Kim last visited China in May. China is North Korea's major ally and its most important source of food and energy. China's government had no immediate comment on Mr. Kim’s reported visit.
• US decision on arms sales may signal policy shift
  U.S. State Department spokesman Philip J. Crowley confirms the lastest arms sales programs to Taiwan. (CNA)•Publication Date:08/26/2010 •Source: China Times The Obama administration’s recent decision to notify Congress of three Taiwan arms sales programs related to radar upgrades for the island’s Indigenous Defense Fighters could signal an apparent shift in policy, the U.S.-Taiwan Business Council said Aug. 24. The council issued a press release after the U.S. State Department confirmed earlier the same day that it had notified Congress as required under the Arms Export Control Act of the proposed direct commercial sales between Taiwan and U.S. companies. State Department spokesman Philip J. Crowley said the planned sale includes defense services, technical data and defense articles for Taiwan’s air defense system, as well as radar equipment for its IDFs. However, he did not provide any details on the monetary amount or U.S. firms involved. Council President Rupert Hammond-Chambers noted that after the White House approved several arms sales programs totaling some US$6.4 billion from the former Bush administration in late January, a decision was made to submit no further notifications for the year. He said the council is encouraged by the seeming change in policy represented by the State Department’s latest move. [Arms sales] [China confrontation] [Obama]
• Kim Jong-il visits China Thursday
  August 26, 2010 North Korean leader Kim Jong-il was visiting China early this morning, a key South Korean government official told JoongAng Ilbo. “(North Korea’s) National Defense Commission chairman Kim was detected to be visiting China on his private train,” the official said. “Unlike his ordinary visit to China, when he visited via Sinuiju and Dandong (of China), he was detected this time to have gone to China through three provinces in Northeastern China.” The official said Seoul is yet to grasp of the purpose of the visit and whom Kim to contact during the visit. This is Kim’s second visit to the North Korea’s closest ally this year. Kim visited China to meet Chinese leader Hu Jintao in May. His unheralded trip to China this time triggers much speculation about the motif as it occurred when former U.S. President Jimmy Carter is visiting North Korea on a rescue mission for Aijalon Mahli Gomes, a U.S. citizen detained in the North for seven months for illegal entry. Carter is known not to have met Kim on Wednesday, the first day he spent in the North. by Seo Seung-wook, Moon Gwang-lip [joe@joongang.co.kr]
• Kim Jong-il Reported to Be in China
  By CHOE SANG-HUN Published: August 25, 2010 The South Korean authorities were checking signs that the North Korean leader, Kim Jong-il, was visiting China by special train on Thursday, an official in the presidential office of South Korea said. South Korean news media, including the national news agency, Yonhap, and the mass-circulation daily, Chosun, reported the information in their Web sites.
• NKorea's Kim visits Chinese school, teachers say
  By SCOTT McDONALD The Associated Press Thursday, August 26, 2010; 3:58 AM BEIJING -- North Korea's reclusive leader Kim Jong Il was in China Thursday on his second visit this year to his country's biggest source of diplomatic and financial support, according to teachers at a school he visited. The visit, which has not been announced by either country, is highly unusual, coming just three months after the last visit of Kim, who rarely travels and when he does goes by train. It came particularly as a surprise because former U.S. President Jimmy Carter is in North Korea and many had speculated he would meet the leader. But his stop in Jilin city in Jilin province in northeastern China was confirmed by two teachers at the Yuwen Middle School.
• Chinese, N Korean leaders hold talks
  North Korean leader Kim Jong-il met with Chinese President Hu Jintao in Beijing on Wednesday Kim So-hyun The Korea Herald Publication Date : 06-05-2010
  North Korean leader Kim Jong-il met with Chinese President Hu Jintao Wednesday (May 5) to discuss efforts to restart the six-nation nuclear talks and Beijing’s economic aid to the impoverished state, sources said.
  When Chinese Premier Wen Jiabao visited Pyongyang in October last year, Wen and Kim Jong-il appeared to have discussed developing the Rajin port, building a second bridge over the Yalu River and a highway between Pyongyang and Sinuiju, according to Hong Ik-pyo, senior researcher at the state-run Korea Institute for International Economic Policy. “Kim and Hu are expected to discuss actual implementation of some of the investment agreements made then,” Hong said. [FDI]
• Cheonan raises tensions with China
  August 19th, 2010 Author: John Hemmings, RUSI The sinking of the Cheonan, recent actions by the United States and South Korea, and reaction by China will provide some difficult questions for states of the Asia Pacific region, and the international community to resolve.
  Returning to the Cheonan, China’s reaction to the Yellow Sea exercises ignores the fact that a North Korean vessel deliberately sunk a South Korean vessel. China and Russia continue to cast doubt on its findings, but a multinational investigation team comprising experts from Sweden, the United Kingdom, Australia, the US, and South Korea found North Korea culpable and issued a public report with those findings. [MISCOM] [Cheonan] [China confrontation] [Resurgence]
• U.S. SEEKING STRATEGIC AND NUCLEAR DIALOGUE WITH CHINA
  Kyodo ("", Washington, 2010/08/20) reported that the U.S. government is pursuing bilateral dialogue with the PRC on strategic issues like nuclear forces and deterrent policy to create ''strategic stability'' between the two big powers, a senior U.S. Defense Department official said in a recent interview with Kyodo News. But it is uncertain when the dialogue will start because ''the interruption in military-to-military dialogue has gone on longer'' than the United States expected, according to the official. The official said, ''We can imagine many important topics that we would like to cover, over a decade of dialogue with China.'' ''We would like to explain our concepts of strategic stability and express our concerns about the things China is doing that are troubling from our perspective.'' The official, who declined to be named, also said, ''We do not understand the type of nuclear force that will result from the current buildup in China, and we find China's lack of transparency troubling.'' [US China] [China confrontation] [Military balance]
• Investments in NK limit China’s policy choices
  By Kang Hyun-kyung Approximately 100 small Chinese companies out of 150 that have investments in North Korea are based in Jilin and Liaoning Provinces near the northeastern border with the North. These investments constrain Beijing’s policy options toward the world’s most isolated nation, said a China watcher. Drew Thompson, director of China Studies and Star Senior Fellow at the Nixon Center based in Washington D.C., predicted sanctions against the North would not only put Chinese investments at risk but also do a disservice to China’s plan to help North Korea open up and take advantage of its market. [China NK] [Sanctions]
• Chinese Special Envoy Winds up Visit to DPRK
  Pyongyang, August 19 (KCNA) -- Wu Dawei, special envoy for the Korean Peninsula issue of the Chinese government, and his party visited the DPRK from August 16 to 18. During their stay, they paid a courtesy call on Kim Yong Il, department director of the Central Committee of the Workers' Party of Korea, and Pak Ui Chun, minister of Foreign Affairs, and had talks with officials concerned. At conversations and talks the two sides had in-depth discussions on the regional situation and the bilateral relations of friendship and matters of mutual concern including the resumption of the six-party talks and the denuclearization of the whole Korean Peninsula. They reached a full consensus of views on all the matters discussed.
• Will China Intervene If N.Korea Collapses?
  Will China Intervene If N.Korea Collapses? The U.S. Defense Department in its annual review of China's rising military might hinted at a warning that Beijing could deploy its troops in North Korea if political instability threatens to spill across the border. "China's leaders hope to prevent regional instability from spilling across China's borders and thereby interfering with economic development or domestic stability. Changes in regional security dynamics -- such as perceived threats to China's ability to access and transport foreign resources, or disruptions on the Korean Peninsula -- could lead to shifts in China's military development and deployment patterns, likely with consequences for neighboring states," as the report delicately phrased it. Put bluntly, the Chinese Army could be deployed along the border with North Korea if the North Korean regime collapses, threatening Beijing's interests. This is the first time the U.S. government has openly mentioned China's possible military response to sudden changes in North Korea, meaning that it is taking a realistic approach to the role China plays in North Korean issues. [Collapse] [China NK] [Takeover]
• China Blames Mechanical Failure for N.Korean Jet Crash
  China on Thursday said a North Korean MiG-21 fighter jet crashed in the northeastern Chinese province of Liaoning on Tuesday due to mechanical failure. The state-run Xinhua news agency said the plane, which crashed in Lagu Township in Fushun County, went off course due to a technical defect and strayed into Chinese territory. Xinhua said China and North Korea "reached consensus" on dealing with the aftermath and the North apologized
• Chinese Nuke Envoy Visits N.Korea
  China has sent its top nuclear envoy Wu Dawei to North Korea to discuss the resumption of six party talks on the North's nuclear weapons program and relieve tension on the Korean Peninsula following the sinking of the South Korean Navy corvette Cheonan. China's Foreign Ministry said on its website on Thursday that Wu "visited North Korea from Monday to Wednesday to discuss resuming the nuclear talks and exchange opinions on peace and stability on the peninsula." The ministry said Wu met one-to-one with senior officials including Foreign Minister Pak Ui-chun and chief nuclear negotiator Kim Kye-gwan, as well as Kim Yong-il, head of international affairs at the North Korean Worker's Party. [Six Party Talks]
• Relations in tact following N.Korean fighter jet crash
  Experts say the pilot’s reason for entering Chinese airspace will likely remain unanswered By Park Min-hee North Korea and China are engaged in close discussions to address the crash of a North Korean fighter jet in northeast China’s Liaoning Province. On Wednesday, the day after the crash, China issued an unusually prompt report through Xinhua News stating, “The plane that crashed was a North Korean fighter, and China is currently discussing the issue with North Korea.” In the wake of the report, a vehicle from the North Korean general consulate in Shenyang arrived Wednesday evening at the scene of the crash in Lagu Township, Fushun Prefecture, Liaoning Province, and a deputy secretary in the Chinese Foreign Ministry also reportedly left for Shenyang. Sources reported that Chinese authorities dismantled the wreckage of the North Korean plane Thursday morning and removed it from the crash site.
• USTR expresses concern over Taiwan rice wine tax cut
  2010/08/20 10:38:26 Washington, Aug. 19 (CNA) The U.S. government expressed concern Thursday over the Taiwan legislature's approval earlier in the day of a tax reduction for rice wine -- a kitchen staple among Taiwanese consumers. "The United States is concerned with the potential market impact of Taiwan's tax reduction on rice wine, " said an official with the Office of the United States Trade Representative [Wine]
• Implications of China’s Economic Rise for Northeast Asian Geopolitics
  Drew Thompson
  Director of China Studies and Starr Senior Fellow The Nixon Center Washington, DC
  Despite the global economic crisis, China appears to have weathered the storm well; its stimulus package was robust, its economy achieved positive economic growth throughout the crisis (though it was close to zero in 2008) and its banks remain solvent. Its vast floating population of low-cost labor, high savings rates, massive foreign currency reserves and political adeptness has served China’s interests well in a time of great crisis. Rather than succumb to domestic chaos from mass layoffs stemming from the collapse of export markets, China has avoided stagnation, inflation and managed its chronically high unemployment while continuing to deploy its capital at home and abroad to its own advantage. China hopes its political-economic model -- now proven to be particularly resilient -- is appealing to developing countries seeking to replicate China’s success. [China rising]
• Chinese Investors and North Korea’s Future
  Drew Thompson
  Director of China Studies and Starr Senior Fellow The Nixon Center Washington, DC Paper presented at: 2010 Northeast Asia Future Forum: Challenges and Opportunities for the Establishment of East Asian Community August 2, 2010 Peking University Beijing, China 2 When the United States looks at North Korea, we see their nukes and songun (military first) policy; nothing but guns. But when China looks, they see butter too. North Korea and China have historic links and significant economic ties. China often ignores Pyongyang’s bad behavior while the U.S. is often blind to Chinese perspectives. These diverging perspectives reach the highest levels. At the G-20 summit, President Obama accused China of “willful blindness” towards North Korea. Though President Obama acknowledged North Korea’s proximity to China in his remarks, a Chinese Foreign Ministry spokesman countered with the observation that China’s view of North Korea is very different than a country 8,000 kilometers away. If one believes that China is central to resolving tensions on the peninsula, then it is imperative that one seeks to understand their unique view which shaped by historical, geo-strategic and economic interests.[Paradigm] [China NK]
• China’s Perspective of Post-Cheonan Regional Security
  Drew Thompson
  Director of China Studies and Starr Senior Fellow The Nixon Center AIPS Symposium on “Post-Cheonan Regional Security Seoul, Korea August 13, 2010 2 The Cheonan incident has seriously tested China’s foreign policy and relations in the region, reinvigorating U.S. alliances with South Korea and Japan amid growing regional support for a robust and active U.S. presence in both Northeast and Southeast Asia. China’s failure to take a stronger stand against North Korea’s attack on the Cheonan reflect stagnation and uncertainty in Chinese decision making at the highest levels. Regional concerns about China’s growing assertiveness, a more active and far-ranging PLA and China’s growing economic hegemony are heightened by a lack of insight into opaque politicking in Beijing, raising questions about whether the succession process from Hu Jintao to the next generation of leaders is going smoothly, or whether there is a widening gap between civilian and military leaders. It is impossible to know how and to what degree elite politics in the run-up to 2012 are shaping China’s response to foreign policy challenges, however, it is clear that they will affect Chinese perceptions of their own interests and possibly result in postures that adversely affect China’s relations with the U.S. and the region.
  China’s response to the Cheonan attack was seen as out of step with South Korea, drawing criticism from both Seoul and Washington, which surprised some in Beijing who felt that their reaction was consistent with China long-standing posture. Basically, China felt that nothing had changed, and China’s subsequent response was not towards the alleged instigator, North Korea, but the highly visible and choreographed response by South Korea and the U.S. [Cheonan] [China NK] [China confrontation]
• China Could Intervene at Military 'Flash Points,' Pentagon Warns
  The U.S. Defense Department says North Korea, the Spratly Islands, the Senkaku Islands, Afghanistan and Pakistan are "flash points" that could prompt China to assert its regional interests. "China's leaders hope to prevent regional instability from spilling across China's borders and thereby interfering with economic development or domestic stability," the Pentagon warns in an annual report titled "Military and Security Developments Involving the People's Republic of China."
  A "disruption" like regime collapse in North Korea could prompt the Chinese military to act, the report says. "Changes in regional security dynamics -- such as perceived threats to China's ability to access and transport foreign resources, or disruptions on the Korean Peninsula -- could lead to shifts in China's military development and deployment patterns, likely with consequences for neighboring states," it warns. The U.S. had so far analyzed the possibility of Chinese military intervention and a possible response behind the scenes, but the Pentagon report is the first open mention of such fears. It implies that the U.S. is considering a military response to Chinese interventions. [China confrontation] [Collapse] [Takeover]
• Global Military Agenda: U.S. Expands Asian NATO To Contain And Confront China
  by Rick Rozoff
  Global Research, August 7, 2010 The U.S. ended the four-day Invincible Spirit joint military exercise with South Korea on July 28, which consisted of 20 warships and submarines, 200 aircraft and 8,000 troops "in the sea, shore and the skies" [1] of South Korea and in the Sea of Japan near the coasts of North Korea and Russia. On the same day the Taiwan News ran a feature entitled "China reports: the US means to set up another NATO in Asia," which cited Chinese news media, scholars and analysts warning that "The US is establishing another 'NATO' in Asia to contain China as evidenced in the ongoing high-profile naval exercise with South Korea and a perceived intrusion in South China Sea affairs. [T]hese moves including explicit intervention in Asian affairs underline the US's schemes to challenge China over its growing presence in this area...."
  Chinese scholar Shih Yongming is paraphrased as asserting that "The US is capitalizing on the contradictions among East Asian countries to form a front against China," in reference to U.S. Secretary of State Hillary Clinton proposing "to include the controversy over the issues of South China Sea into the mechanism of international laws and [speaking] explicitly about US stakes in the disputed sea's areas," [2] an allusion to her comments at the Association of Southeast Asian Nations (ASEAN) Regional Forum in Hanoi on July 23. [Joint US military] [China confrontation]
• Rice wine tax cuts do not violate WTO rules
  •Publication Date:08/10/2010 •Source: Taiwan Today •By Audrey Wang The government said Aug. 9 it will continue to support a proposed amendment that would sharply reduce the tax imposed on rice wine, even though the U.S. and the EU have said they are concerned the amendment violates World Trade Organization regulations. Consumers in Taiwan currently pay NT$50 (US$1.57) for a 600-milliliter bottle of “red label” rice wine, approximately NT$30 of which goes for taxes. The proposed amendment would reduce the cost to NT$25 per bottle, including an NT$5.4 sales tax. A government official said the move would not be in violation of WTO rules, since rice wine is used in Taiwan mainly as a cooking wine, not a distilled liquor to be imbibed. Rice wine is thus entitled to be placed in a lower tax bracket than normal spirits, he said. The official added that Taiwan will give equal treatment to other WTO members whose alcohol products are used for the same culinary purposes. The government argues that the price reduction is necessary to protect public health. As a result of the high taxes on rice wine, many counterfeit products, some of which are unsafe, have proliferated in the market in recent years. On July 26, the government submitted a report to the WTO, which members of the trade organization have 60 days to comment on. Reports surfaced in recent days that if the proposed amendment is passed into law, the U.S. and the EU could file a claim against Taiwan with the WTO. [Wine]
• Legislature passes ECFA
  KMT and DPP lawmakers hold signs to voice their opposite stances on ECFA before the accord is later passed in the Legislature. (CNA)•Publication Date:08/18/2010 •Source: Taiwan Today •By Audrey Wang The Legislative Yuan passed the Economic Cooperation Framework Agreement Aug. 17, paving the way for the trade pact to take effect as early as September 2010. Officials said Taiwan and mainland China will now proceed to exchange copies of the trade agreement for confirmation, work on its English version and decide on a date for the accord to officially come into force. “Within six months after the accord takes effect, the two sides will start negotiations on agreements on investment protection, dispute settlement as well as trade in goods and services,” they added. A cross-strait economic cooperation committee will also be formed to facilitate implementation of the ECFA, the officials said. According to the agreement, 539 Taiwanese export items to the mainland will enjoy tariff reductions beginning Jan. 1, 2011. Tariffs imposed on these products will be gradually reduced to zero in three stages over the following two years. Similarly, tariffs that Taiwan imposes on 267 goods from mainland China will be reduced to zero over the next two years. Some economists have estimated that as a result of the agreement, industries in Taiwan can expect to pay NT$29.5 billion (US$922 million) less in tariffs than before on an annual basis. “The passage of the ECFA can be seen as a crucial step in helping Taiwan break free from its economic isolation and in preventing the island from becoming marginalized,” Lo Chih-chiang, spokesman of the Presidential Office, said after the bill was passed. [FTA] [Straits]
• China-US: Wisdom not gunboats
  Tuesday, 17 August 2010 15:32 Written by Eric Walberg
  A new US military doctrine, war games, and ASEAN troops in Afghanistan have stirred up an oriental hornet's nest, says Eric Walberg "From a historical perspective, the US has continuously found enemies and waged wars. Without enemies the US cannot hold the will of the whole nation," concluded Chinese Air Force Colonel Dai Xu, after perusing the 2010 US defense report. He points to the attempt to turn the Association of Southeast Asian Nations (ASEAN) into an Asian NATO -- Singapore, Malaysia and Thailand already have troops in Afghanistan, and the ongoing military games in the South China Sea with Vietnam and in the Yellow Sea with Korea -- employing enough firepower for a full-scale war. [China confrontation] [Reserve] [US global strategy]
• ANNUAL REPORT TO CONGRESS Military and Security Developments Involving the People’s Republic of China 2010
  Office of the Secretary of Defense
  Over the past 30 years, China has made great progress in its pursuit of economic growth and development, which has allowed China to achieve higher living standards for the Chinese people and has increased China’s international profile. These economic achievements, combined with progress in science and technology, have also enabled China to embark on a comprehensive transformation of its military. The pace and scope of China’s military modernization have increased over the past decade, enabling China’s armed forces to develop capabilities to contribute to the delivery of international public goods, as well as increase China’s options for using military force to gain diplomatic advantage or resolve disputes in its favor. [Military balance] [China confrontation]
• Uyghur dissident's daughter visits Taiwan
  2010/07/18 20:01:41 Taipei, July 18 (CNA) The daughter of Rebiya Kadeer, president of the World Uyghur Congress, said in Taipei Sunday that she is visiting Taiwan to thank Taiwan's people for their support of the organization's cause on behalf of her mother. Raela Tosh told a news conference that her mother, who was barred from visiting Taiwan for three years last year, believes she will be allowed to visit Taiwan some day because [Separatism] [Straits]
• Taiwan's birth rate continues to drop; Year of the Tiger blamed
  2010/07/17 20:35:47 Taipei, July 17 (CNA) The number of babies born in Taiwan during the first six months of the year reached 82,712, registering a decline of 8.9 percent compared to the same period in 2009, according to Ministry of the Interior's (MOI) statistics released Saturday. The ministry attributed the drop to some people's reluctance to have children born in the "Year of the Tiger, " which is one of the years in the 12-year cycle of animals on the Chinese zodiac. The drop, however, was smaller than the 16.7 percent year-on-year decline in [Religion]
• President offers condolences to White Terror victims
  •Publication Date:07/16/2010 •Source: Taiwan Today •By June Tsai President Ma Ying-jeou expressed his condolences to victims of the White Terror era at a memorial July 15, and vowed to continue to promote human rights and judicial reform. The memorial event, followed by a concert, marked the 23rd anniversary of the end of martial law in Taiwan (1949-1987). In this period, known as the White Terror, thousands of people were unjustly persecuted, imprisoned or executed by government authorities. [Human rights]
• North Korean Opera Draws Acclaim in China
  A dance scene from “The Dream of the Red Chamber,” performed by North Korea’s Sea of Blood Opera Company.
  By SHEILA MELVIN Published: July 28, 2010 BEIJING — When the North Korean leader, Kim Jong-il, traveled to China by armored train in early May, his visit was so shrouded in secrecy that domestic and global media were forced to speculate on its duration, its purpose — even if it were really taking place. .By contrast, the Chinese tour of the North Korean Sea of Blood Opera Company, which Mr. Kim is credited with helping to establish and direct, has been met by a veritable media frenzy. Photographs of the Sea of Blood’s arrival on May 2 in the Chinese border town of Dandong were widely broadcast and became an Internet sensation. Chinese media followed the company almost paparazzi-style, reporting on its performers’s demeanors (“lively and friendly”), favorite foods (pork and vermicelli stew and fresh fruit), and giving rave reviews to its operatic production of the classic Chinese novel “Dream of the Red Chamber” (“the biggest hit since ‘Avatar.”’) Audiences were equally enthusiastic. [Hallyu] [Softpower] [China NK]
• U.S.-China Conflict: From War Of Words To Talk Of War
  Part I
  By Rick Rozoff
  Global Research, August 15, 2010 Stop NATO Relations between the U.S. and China have been steadily deteriorating since the beginning of the year when Washington confirmed the completion of a $6.4 billion arms deal with Taiwan and China suspended military-to-military ties with the U.S. in response. In January the Chinese Defense Ministry announced the cessation of military exchanges between the two countries and the Foreign Ministry warned of enforcing sanctions against American companies involved with weapons sales to Taiwan. The Washington Post reported afterward that during a two-day Strategic and Economic Dialogue in Beijing this May attended by approximately 65 U.S. officials, Rear Admiral Guan Youfei of the People's Liberation Army accused Washington of "plotting to encircle China with strategic alliances" and said arms deals with Taiwan "prove that the United States views China as an enemy." [1] [China confrontation]
• MOFA recovers more funds in diplomatic fraud case
  •Publication Date:07/19/2010 •Source: Taiwan Today The Ministry of Foreign Affairs recently received some US$1 million in funds wired by Singaporean authorities from an account held by Ching Chi-ju, who along with another broker is alleged to have embezzled nearly US$30 million in a diplomatic scandal dating back to 2006. To date, the ministry has been successful in recovering a total of US$5.5 million in the case, according to a MOFA statement released July 16. Singapore’s High Court ruled in May that Taiwan was entitled to recover the roughly US$29.8 million wired to a joint account held by Ching and Wu Shih-tsai in 2006 for the purpose of working toward establishing official diplomatic ties with Papua New Guinea. [Corruption]
• The New Face of U.S.-China Relations: “Strategic Reassurance” or Old-Fashioned Rollback?
  Peter Lee The Obama administration took office in 2009 determined to move beyond might-makes-right-makes-might unilateralism of the Bush years, and reassert America's global influence as the most principled and powerful guarantor of rule-based multilateralism. With respect to China, this approach was presented as a doctrine of "strategic reassurance". However, the policy has not yielded the systemic breakthroughs that the Obama administration hoped to achieve on climate change, non-proliferation, Middle East security, still less on U.S.-China relations. Instead, increasingly acrimonious exchanges between Beijing and Washington reveal the contradictions inherent in attempting to shoehorn an authoritarian, mercantilist, and suspicious nation into a refurbished world system that ostensibly promotes democracy, open markets, multilateralism, while forcefully advancing American interests. Now the Obama administration seems to have accepted a world of lowered expectations and strives for the more achievable goal of advancing U.S. power at China’s expense. Friction with China has emerged as a regular feature of U.S. diplomacy—a means to score points in the game of international diplomacy at the expense of an unpopular, uncooperative, and, at least for the moment, diplomatically and militarily weaker regime. Indeed, U.S. China policy today looks a lot like good old-fashioned rollback, isolating China instead of incorporating it into a win-win multi-polar system.
  Even in its inception, U.S. demands for “strategic reassurance” were inherently unequal, framed as something that China had to provide up front before the U.S. would reciprocate. Deputy Secretary of State James Steinberg described the doctrine at a Center for a New American Security conference on China in September 2009. The onus for reassurance was put on China in a way that Beijing undoubtedly found grating
  In a development that China affects to find increasingly suspicious, U.S. exchanges with China in Asia have grown progressively more confrontational, thereby playing to America's primary strength—its overwhelming military superiority while highlighting a key Chinese vulnerability—regional fears (albeit voiced mostly by Japan and more recently South Korea) concerning the geopolitical ambitions of its burgeoning military. In particular, it appears that the temptation to exploit China’s geopolitical vulnerabilities—and take advantage of South Korea President Lee Myung-bak’s enthusiasm for using U.S. support to challenge Chinese hegemony in Northeast Asia—were irresistible to the Obama administration. The result is a destabilization of the Korean peninsula that has, by U.S. design, achieved the exact opposite of reassurance. Things started to come to a nasty head over the sinking of the South Korean corvette Cheonan near North Korean waters on March 26. The way South Korea and the United States have allowed the issue to play out seemed designed to put China in an ugly light.
  However, China’s ambivalence on the issue of the Cheonan probably has more to do with the growing suspicion that the U.S. definition of "strategic reassurance" now involves, above all, not just the maintenance but the attempted enhancement of U.S. strategic advantage in China's backyard. The Cheonan incident and the U.S. response did not occur in a vacuum. They took place at a time of considerable uncertainty concerning the U.S. forward position in the Pacific [China confrontation] [Sequencing]
• 'CHINESE BANKS CANNOT ESCAPE U.S. SANCTIONS'
  Korea Herald (Kim Ji-hyun, Seoul, 2010/01/26) reported that PRC banks will not be able to avoid the sanctions that the U.S. is pursuing against the DPRK, an official in the ROK said Monday. "The bigger banks cannot avoid the sanctions because all of its transactions go through the U.S.," he said. He stressed that even smaller institutions 15 such as Banco Delta Asia in the past 15 could come under scrutiny because all wiring services go through New York. "This means that for everyone dealing with North Korea, it will become difficult for them to send and receive money from the North," the official said on the condition of anonymity. [Sanctions] [US China]
• China invests heavily in Brazil, elsewhere in pursuit of political heft
  By John Pomfret Washington Post Staff Writer Monday, July 26, 2010; A01 PORTO DO ACU, BRAZIL -- Here along the golden sands that grace the Atlantic coastline 175 miles north of Rio de Janeiro, China is forging a new economic reality. Just past a port where workers are building a two-mile-long pier to accommodate huge vessels known as Chinamaxes that will transport iron ore for China's ravenous steel industry, past berths for tankers to lug oil to Beijing, a city of factories is sprouting on an island almost twice the size of Manhattan. Many of the structures will be built with Chinese investment: a steel mill, a shipyard, an automobile plant, a factory to manufacture oil and gas equipment. The port project recalls the China of the past decade: a worldwide effort to extract resources for use in the country's vast manufacturing sector. But the factory city represents something new: an aggressive push to invest in industries overseas to bolster the country's image and political influence. Call it "dollar diplomacy," Chinese-style. The investments in Brazil reflect China's "going out" strategy, which seeks to guarantee natural resources for development purposes and to shield the country's state-owned enterprises from slower growth at home. Flush with more than $2 trillion in foreign exchange reserves, China has directed its state firms to scour the globe for opportunities. [China rising] [Going out] [ODI] [China confrontation]
• China's looming North Korea problem
  A recent article in Time magazine reminds readers that the issue of the Cheonan is still with us. China's leadership probably wishes otherwise. The Cheonan was a South Korean corvette (small warship) that was split in two and sunk to the bottom of the ocean this March, taking with it the lives of 46 sailors. An exhaustive investigation, aided by Western nations, found that the Cheonan had been struck by a North Korean torpedo. The rancor and rhetoric that followed brought relations between North and South Korea to an even more dangerous standoff than usual. Caught between the two was China. Beijing is the North's biggest, and almost only, backer in the world. At the same time, China has built ever-more lucrative trade ties with the South. For a story I wrote in May, one of the analysts I spoke with underlined the difficulties the situation presents to Beijing: “China is diplomatically boxed in," said Malcolm Cook, the East Asia program director at the Lowy Institute, an Australian policy-research organization. On one hand, there are decades of close relations with North Korea and a diplomatic stance defined by such alliances, Cook said. On the other, he said, China is now "too large and too influential globally ... to be able to hang on to that." What to do? So far, China has been able to avoid taking much of a stand on the issue, saying that the South Korean investigation was not conclusive or convincing. Russia has followed a similar line, accompanied by press leaks that Russian investigators think the Cheonan hit a mine that was floating in the water. But Seoul is apparently getting close to making the contents of its report public. Time magazine reports having seen a 286-page draft that seems to convincingly discount every scenario other than the North Koreans blasting the Cheonan with a torpedo -- a strike that certainly qualifies as an act of war. [China NK] [Cheonan] [China confrontation]
• PKU to Confer Honorary Doctorate on Noam Chomsky
  Public Lecture by Professor Noam Chomsky, Peking University 2010 — Ceremony for the Conferment of the Honorary Doctorate on Professor Noam Chomsky [Resurgence]
• China Passes U.S. as World’s Biggest Energy Consumer
  July 20, 2010, 5:43 AM EDT July 20 (Bloomberg) -- China overtook the U.S. as the world’s biggest energy user last year, emphasizing that developing nations are driving global growth, according to the International Energy Agency. China consumed 2,252 million metric tons of oil equivalent in 2009 in the form of crude, coal, natural gas, nuclear power and renewable sources, IEA Chief Economist Fatih Birol said yesterday. That exceeded the 2,170 million tons used by the U.S. [China rising]
• ROC reaffirms sovereignty over islands
  •Publication Date:07/30/2010 •Source: Taiwan Today •By Elaine Hou The ROC government has reaffirmed its sovereignty over four island groups in the South China Sea following remarks by Washington and Beijing on the region. In a statement, the Ministry of Foreign Affairs said the ROC has unquestionable sovereignty over the Chungsha, Nansha, Shisha and Tungsha islands, from the perspective of history, geography and international law. “The ROC enjoys all rights over the islands and their surrounding waters, seabed and subsoil. It cannot accept any claim to sovereignty over, or occupation of, these areas by other countries or territories.” The ministry’s comments follow those made by U.S. Secretary of State Hillary Clinton during the Association of Southeast Asian Nations Regional Forum in Vietnam last week. She said the U.S. was concerned that conflicting claims on the Nansha and Shihsa island chains interfere with maritime commerce, hamper access to international waters in the area and undermine the U.N. Convention on the Law of the Sea. The U.S., Clinton said, has a “national interest” in resolving the claims and opposes the use of threat or force by any claimant. In response, mainland Chinese officials criticized Clinton’s remarks July 30, stating that Beijing opposes the internationalization of the matter. The region, which is rich in oil deposits and marine biodiversity, is claimed either entirely or in part by Brunei, Malaysia, the Philippines, Vietnam and mainland China. Based on the principles of “safeguarding sovereignty, shelving disputes, peace and reciprocity, and joint exploration, the ROC is willing to collaborate with other countries in exploring the region’s resources,” the MOFA said. The ministry urged neighboring countries to respect the U.N. Charter and the U.N. Convention on the Law of the Sea, as well as avoiding unilateral measures that might upset peace and stability in the region. “Countries bordering the area should exercise self-constraint so that peaceful resolutions to South China Sea disputes can be reached through consultation and dialogue,” the MOFA said. “Taiwan remains willing to participate in dialogue aiming to form resolutions that will promote regional peace, stability and development.” (JSM) [Friction] [China confrontation]
• Taiwan reiterates sovereignty over archipelagos
  2010/07/29 22:29:29 Taipei, July 29 (CNA) The Ministry of Foreign Affairs (MOFA) reiterated Thursday the Republic of China's sovereignty over various archipelagoes in the South China Sea that have received much attention in the international community lately. In a press release, the MOFA said that no matter from what perspective -- history, geography or international law -- the Nansha Islands (Spratly Islands), Shisha Islands (Paracel Islands), Chungsha Islands (Macclesfield Bank) , Tungsha Islands (Pratas Islands) , as well as their surrounding waters and respective seabeds and subsoils, all consist of the inherent territory of the ROC. "These archipelagoes [Friction] [China confrontation] [Straits]
• Ministry of Foreign Affairs of the Republic of China (Taiwan) reiterates its position on the South China Sea
  Regarding the South China Sea, which has received much attention in the international community lately, the Ministry of Foreign Affairs of the Republic of China (Taiwan) reiterates its position as follows: 1. No matter from what perspective one uses—history, geography or international law—one can see that the Nansha Islands (Spratly Islands), Shisha Islands (Paracel Islands), Chungsha Islands (Macclesfield Islands), Tungsha Islands (Pratas Islands), as well as their surrounding waters, and respective seabed and subsoil, all consist of the inherent territory of the Republic of China (Taiwan). These archipelagoes without a doubt fall under the sovereignty of the government of the Republic of China (Taiwan). Therefore, the government reasserts that it enjoys all rights over the islands and their surrounding waters. Furthermore, it cannot accept any claim to sovereignty over, or occupation of, these areas by other countries or territories. 2. The government of the Republic of China (Taiwan) calls on countries bordering the islands to respect the principles and spirit of the Charter of the United Nations and the United Nations Convention on the Law of the Sea, and to refrain from adopting unilateral measures that might upset the peace and stability of the region and the South China Sea. 3. The government of the Republic of China (Taiwan) reiterates that it upholds the basic principles of “safeguarding sovereignty, shelving disputes, peace and reciprocity, and joint exploration” and remains willing to work with other countries in exploring the resources of the South China Sea. 4. The government of the Republic of China (Taiwan) also urges the neighboring countries bordering the South China Sea to exercise self-constraint so that peaceful resolutions to South China Sea disputes can be reached through consultation and dialogue. Taiwan remains willing to participate in dialogue aiming to form resolutions to disputes and promote regional peace, stability and development.(E) [Friction] [China confrontation] [Client]
• 'China has different view on Cheonan'
  By Sunny Lee Korea Times correspondent BEIJING _ Most Chinese government bureaucrats and scholars regard the findings by an international team of investigators on the Cheonan incident as not sufficiently standing up to scrutiny, a prominent security expert here said recently. He added that Beijing is annoyed at the planned joint maritime exercises by South Korea and the United States because such a maneuver is likely to exacerbate tensions further in the volatile East Asia region. “I have to say the majority of Chinese policymakers and academics feel that the Cheonan (investigation) report does not hold water,” said Zhu Feng, a professor of International Studies at Peking University in Beijing. [Cheonan] [Coverup] [China NK]
• China turns netizen anger on Seoul
  By Peter Lee The United States-South Korean Cheonan initiative has apparently fizzled, giving China a chance to shift the geopolitics of Korean policy to its preferred framing: "stability" instead of "security", and economics over military affairs. [China-SK] [Public opinion] [Democratisation]
• A test of Chinese people's diplomacy
  Source: Global Times [05:03 July 07 2010] Comments There need to be more channels for these voices to be expressed in order to warn the US. And, grass-roots patriotism needs real tests to grow into an effective alternative power to China's diplomacy. The Chinese media may also help amplify the public outcry. China and the US have agreed that the two countries will not engage in strategic confrontation. A normal Sino-US relationship does not necessarily mean China should hide its problems behind a smiling facade. It will be better, in the long run, for the two countries to put on the table whatever problems they have.This should also apply to people-to-people relations between the two countries. Public anger or protests should not be considered a burden by the Chinese government, but an additional force on the bargaining table. If China does not try to explore various means to press Washington, it will become more difficult to deal with future incidents. [Democratisation] [Resurgence]
• Taiwan pledges continued adherence to '1992 consensus'
  2010/08/12 13:31:26 Taipei, Aug. 12 (CNA) Taiwan will seek continued improvement of relations with China based on the "1992 consensus, " which has served as the most important basis for the development of cross-Taiwan Strait relations, the Presidential Office said Thursday. Office spokesman Lo Chih-chiang said that to Taiwan, the so-called "1992 consensus" means "one China, separate interpretations." "As to 'one China, ' we are referring to the Republic of China, " Lo said, highlighting Taiwan's difference with China on the content of the "1992 consensus" and "one China." Li Yafei, vice president of China's Association for Relations Across the Taiwan Straits, said on Wednesday that sticking to an anti-independence stance and the "1992 consensus" has allowed Taiwan and China to build trust and avoid confrontation over the past two years. Li said the consensus means "separately verbalizing the 'one China' [Straits]
• Dichotomy of Obama’s North Korea Policy: Deterrence and Sanctions Will Not Solve the North Korean Question without Chinese Cooperation
  By Tong Kim August 5th, 2010 Tong Kim, Visiting professor at the University of North Korean Studies in Seoul and an adjunct professor at SAIS in Washington, writes, “If there is no exit strategy on the part of Washington or Seoul, the Cheonan incident might become a defining moment for the prolonging of inter-Korean confrontation and the opening of a collision course between the United States and China in the years ahead.” [Cheonan] [China confrontation]
• War in Eastasia
  By John Feffer, August 3, 2010 July was the deadliest month yet for U.S. forces fighting in Afghanistan. In Iraq, while political factions continue a five-month squabble over who will lead the government, insurgent violence is growing. The WikiLeaks info-dump of more than 90,000 documents, in addition to proving to the few who had not yet realized that the United States is in deep doo-doo, have shown that our ally Pakistan is collaborating with the Taliban and al-Qaeda to plan attacks on coalition forces in Afghanistan.
  And so, over the last few months, the Obama administration has been engaged in serious displays of force in Asia. Washington has tightened the screws on North Korea and gone head-to-head against China. The Pentagon may well be signaling to Pyongyang and Beijing that it can handle the additional fight. But we might inadvertently find ourselves halfway down the path to war before it's too late to step back. The problems begin with North Korea. Ever since taking office, but particularly after North Korea's second nuclear test last year, the Obama administration has been unenthusiastic about engaging Pyongyang. Instead, it has settled into a wary containment of the country. The sinking of the South Korean ship Cheonan in March, which an international(sic) inquiry pinned on Pyongyang, only made matters worse. But rather than proceeding with utmost caution, the Obama administration got drawn into even more dangerous waters, thanks to the South Korean government. [Cheonan] [China confrontation] [Capture]
• U.S. takes a tougher tone with China
  By John Pomfret Washington Post Staff Writer Friday, July 30, 2010 The Obama administration has adopted a tougher tone with China in recent weeks as part of a diplomatic balancing act in which the United States welcomes China's rise in some areas but also confronts Beijing when it butts up against American interests. [China confrontation]
• ECFA Expected to Usher In Greater Prosperity and Peace
  Byline:PAT GAO Publication Date:08/01/2010 After four arduous rounds of negotiations that started in January this year, a landmark trade pact between Taiwan and mainland China was signed on June 29 in the southwestern mainland city of Chongqing. Once implemented, the Economic Cooperation Framework Agreement (ECFA) is expected to help institutionalize and normalize trade relations between Taiwan and mainland China. The agreement is also notable because it is likely to further boost economic integration, both in Asia and worldwide. In an interview with Taiwan’s Central News Agency in early July this year, for example, World Trade Organization (WTO) Director-General Pascal Lamy said that ECFA would considerably improve cross-strait relations and help to integrate Taiwan further into the world economy. [FTA] [Straits]
• N. KOREA REPLACING S. KOREA WITH CHINA ON CONSIGNMENT TRADE: SOURTCE
  Yonhap Seoul, 2010/08/01) reported that the DPRK has been able to make up for losses in consignment trade from Seoul's ban on cross-border trade by finding new partners in the PRC, sources here said Sunday. Firms that had contracts with the DPRK for consignment, in which companies in the ROK send raw materials to the DPRK and get back manufactured products, have been hurt the most by the ban. [Sanctions] [China NK]
• The turning period in Chinese development
  August 1st, 2010 Author: Ross Garnaut, ANU and Melbourne University What are the implications of the turning period for China’s continuing economic development, for China’s interaction with the global economy and for economic policy? Here I focus on four of the most important consequences, mention a consequence that is widely anticipated and feared, but which need not eventuate, and briefly discuss one way in which perceptions of China’s growth will be affected by its having entered the turning period.
  Whether or not China succeeds in maintaining such high aggregate rates of growth until it reaches the frontiers of the world economy, most observers will be surprised by how quickly China catches up now that it has entered the turning period. China’s real exchange rate will rise rapidly — whether that occurs through inflation, nominal exchange rate appreciation or a combination of the two. The value of China’s output when measured in the national accounts and converted into international currency at current exchange rates will converge towards the much higher ‘purchasing power’ estimates of GDP. People in China and abroad who focus on conventional measures of national output will find that China catches up with the world’s most productive economies in output per person — and with the United States in total output — much more quickly than they had been expecting from extrapolation of differentials in national growth rates. [China rising]
• Over 20 universities plan to open branches on Kinmen
  2010/07/31 19:47:08 Taipei, July 31 (CNA) More than 20 Taiwanese universities are planning to set up branches on the outlying island of Kinmen in preparation for the admission of Chinese students, a Kinmen official said Saturday. [Services] [Education] [Straits]
• TAIWAN'S MARKET DEPENDENCE ON CHINA MAY RISE TO 50% IN 10 YEARS
  Taiwan Economic News (Judy Li, Taipei, 2010/07/30) reported that a recent report in an economics monthly published by the Bank of China (BOC) Hong Kong predicts the proportion of Taiwan`s exports to the PRC might increase to 50% of the total exports from the current 40% in 10 years, starting from the signing of the economic cooperation framework agreement (ECFA) in June. The statistics released by Taiwan`s Ministry of Finance (MOF) show Taiwan`s exports to the PRC (including Hong Kong) totaled US$56.75 billion in the first six months, the highest of its kind ever, accounting for 43% of Taiwan`s total exports for a sharp annual growth of 61.9%. [Straits] [China rising]
• China trade surplus widens
  By Geoff Dyer in Beijing Published: August 10 2010 06:40 | Last updated: August 10 2010 18:22 China’s trade surplus surged again in July to its highest level in 18 months, adding to the political pressure on Beijing to appreciate its currency more quickly and highlighting questions about global imbalances. The trade surplus for July increased to $28.7bn, well ahead of the $20bn recorded in June and significantly more than analysts’ forecasts. The figure, one of China’s largest ever monthly surpluses, comes at a time when the US trade deficit has been widening.
• China imports widen US trade gap
  By Alan Rappeport in New York, Alan Beattie in London and Anna Fifield in Washington Published: July 13 2010 14:48 | Last updated: July 14 2010 01:28 A surge in imports from China pushed the US trade gap sharply wider in May, adding to a stream of weak data that has put Barack Obama’s administration under pressure for its ­inability to right the faltering economy and stimulate the stagnant jobs market. The trade deficit grew by 4.8 per cent to $42.3bn, according to commerce department figures, the highest since November 2008 and at odds with the consensus of economists, who forecast the gap would shrink in May.
• S.Korea, U.S. Should Stand Up to China
  Yu Yong-won On Aug. 18, 2005, Russian and Chinese forces held their first-ever joint military exercise in Vladivostok in Russia's far east. Called "Peace Mission 2005," the exercise lasted eight days. The first stage involved naval vessels, the second featured an amphibious landing, and the third was a missile launch drill. In 1969 China and Russia exchanged fire after a border dispute and the two powers had been competing ever since. Their joint drill made South Korea, Japan and the U.S. sit up. The most plausible explanation was that Russia and China were practicing dealing with an emergency on the Korean Peninsula. At the time, the Russian Air Force even deployed TU-22M3 Backfire and other strategic bombers equipped with cruise missiles capable of knocking out aircraft carriers. But South Korea and the U.S. did not protest against the drills or demand that they be called off, and Russia and China have been holding joint military drills ever since. The Chinese military conducts drills that could generate even more controversy. One exercise is the crossing of the Apnok or Yalu River that marks the border with North Korea. [China confrontation]
• The South China Sea Brouhaha: Separating Substance from Atmospherics
  By Mark J. Valencia
  August 10th, 2010 Mark J. Valencia, Nautilus Institute Senior Associate and National Asia Research Program (NARP) Research Associate, writes, “China is unlikely to forgive or forget the fact and especially the manner of US interference. If anything, it may have convinced China that the die is cast. It could confirm its worst fears that the United States is stealthily trying to draw ASEAN or some of its components together with Australia, Japan and South Korea into a soft alliance to constrain if not contain China. And China will struggle to break out politically and militarily, setting the stage for rivalry and tension in the years ahead.”
  Now that the most recent wave of China-threat mongering in the Western media has passed, it is time to separate substance from atmospherics. Most of these pieces were triggered by US Secretary of State Hillary Clinton’s statements at the July ASEAN Regional Forum in Hanoi-- including a US offer to mediate the South China Sea disputes-- and China’s angry response at what it views as US interference in its affairs. The United States has cleverly conflated some ASEAN countries’ fear of China’s aggressiveness regarding their conflicting claims to various features and ocean space in the South China Sea with its own angst regarding freedom of navigation. But as the United States knows or should know, China’s objections to certain US military intelligence gathering activities in its exclusive economic zone have little or nothing to do with its purported claim to much of the South China Sea. Indeed, China is not challenging freedom of navigation itself but US abuse of this right. The activities of the US’s EP 3, the Bowditch, and the Impeccable probably collectively included active “tickling” of China’s coastal defenses to provoke and observe a response, interference with shore to ship and submarine communications, ‘preparation of the battlefield’ using legal subterfuge to evade the consent regime, and tracking China’s new nuclear submarines for potential targeting as they enter and exit their base. Few countries would tolerate such provocative activities by a potential enemy without responding in some fashion. These are not passive intelligence collection activities commonly undertaken and usually tolerated by most states but intrusive and controversial practices that China regards as a threat of use of force. A threat of use of force is a violation of the UN Charter let alone the 1982 Convention on the Law of the Sea. These activities should be carefully examined and adjudicated by a neutral body to determine if they are “legal” or not. But such an inquiry would risk making Secretary Hillary Clinton’s statement that the United States ‘opposes the use or threat of force’ by any claimant seem a bit hypocritical. Moreover if the ASEAN claimants – Brunei, Malaysia, the Philippines and Vietnam – think that the recent US statements favor their claims, they may need to think again. Secretary Clinton said that the “United States has a national interest in freedom of navigation, open access to Asia’s maritime commons, and respect for international law in the South China Sea.” But just what international law is that? This statement is a bit odd coming from the only major country that has not ratified the 1982 Convention on the Law of the Sea which governs such claims and activities at sea
  Knowing ASEAN claimants’ concerns and desiring to give China a ‘come-uppance’ regarding its lack of co-operation in punishing North Korea after the Cheonan sinking – and still smarting from the Impeccable incident-- it verbally ambushed and embarrassed China in front of an Asian audience in its sometime nemesis, Vietnam.
  China is unlikely to forgive or forget the fact and especially the manner of US interference. If anything, it may have convinced China that the die is cast. It could confirm its worst fears that the United States is stealthily trying to draw ASEAN or some of its components together with Australia, Japan and South Korea into a soft alliance to constrain if not contain China. And China will struggle to break out politically and militarily, setting the stage for rivalry and tension in the years ahead. [China confrontation] [Double standards]
• USNS Impeccable – Harassed by Chinese Navy
  Published: March 9th, 2009 by John Konrad Yesterday, five Chinese vessels “shadowed and aggressively maneuvered in dangerously close proximity” to the U.S. Navy ocean surveillance ship, USNS Impeccable, as it conducted routine operations in international waters in the South China Sea. According to reports, two of the Chinese vessels closed to within 50 feet (15 meters) of the USNS Impeccable, waving Chinese flags and telling the U.S. ship to leave the area. The Impeccable sprayed its fire hoses at one of the boats in order to protect itself. It is also being reported that one of the crew of one of the Chinese vessels stripped to their underwear and continued closing within 25 feet. [China confrontation]

• China Calls Our Bluff: The US is Insolvent and Faces Bankruptcy as a Pure Debtor Nation
  By Washington's Blog Global Research, July 25, 2010 Washington's Blog - 2010-07-23 America's biggest creditor - China - has called our bluff. As the Financial Times notes, the head of China's biggest credit rating agency has said America is insolvent and that U.S. credit ratings are a joke: The head of China’s largest credit rating agency has slammed his western counterparts for causing the global financial crisis and said that as the world’s largest creditor nation China should have a bigger say in how governments and their debt are rated. “The western rating agencies are politicised and highly ideological and they do not adhere to objective standards,” Guan Jianzhong, chairman of Dagong Global Credit Rating, told the Financial Times in an interview.
  Last week, privately-owned Dagong published its own sovereign credit ranking in what it said was a first for a non-western credit rating agency. The results were very different from those published by Moody’s, Standard & Poor’s and Fitch, with China ranking higher than the United States, Britain, Japan, France and most other major economies, reflecting Dagong’s belief that China is more politically and economically stable than all of these countries. [Finance] [Resurgence][Decline] [China rising]
• It's Official: America Has a China-Containment Policy
  Official, as far as one can get based on a carefully briefed backgrounder U.S. Tomahawk Missiles Deployed Near China Send Message to Time magazine's Mark Thompson, that is.
  If, after all that, anybody believes that the joint US-ROK exercises in the Yellow Sea are primarily a response to the Cheonan sinking or, for that matter, part of an effort to deter the apparently undeterrable North Koreans, well, I have in my possession a stately edifice spanning the swelling bosom of the East River to link the County of Kings to the Island of the Manhattoes, available for purchase exclusively by such trusting souls. The South Koreans get it, and Chosun Ilbo weighed in with an uncharacteristically cautious editorial on July 6:
  Containment, to China, implies that the U.S. will continue to fan fears of China's military ambitions to encourage the rise of India and the the creation of pro-American governments and policies throughout Asia and turn a blind eye or, even worse, extend an enabling hand to Asian states that develop adventurist ambitions in challenging China on the issue of the uninhabited but contested islands that dot the region. I guess we'll find out if the Obama administration has a long-term plan sees an upside in a near-open breach of relations with China beyond giving the opportunity for the U.S. to play to its military strength in Asia and cooperate with local political leaders like South Korea's Lee Myung-bak, who want to use Washington as a counterweight to Beijing.
  think Mr. Steinberg of the NSC et. al. decided that China was an easy mark because of its dependence on peace, global prosperity, and access to markets to advance its economics-based strategy of national development.
  Also, I expect the fact that the Chinese military is a paper tiger figured into U.S. calculations. The PLA has not fought a war since the border conflict with Vietnam in 1979. It didn't do particularly well then, and the current generation of officers has never been "blooded" (experienced the routine chaos and catastrophe of actual battle) and is unlikely to seek out on-the-job training by engaging the world's biggest and most experienced military in a genuine conflict. [China confrontation] [Cheonan] [Camouflage]
• U.S. Tomahawk Missiles Deployed Near China Send Message
  By MARK THOMPSON / WASHINGTON Mark Thompson / Washington – Fri Jul 9, 12:20 pm ET If China's satellites and spies were working properly, there would have been a flood of unsettling intelligence flowing into the Beijing headquarters of the Chinese navy last week. A new class of U.S. superweapon had suddenly surfaced nearby. It was an Ohio-class submarine, which for decades carried only nuclear missiles targeted against the Soviet Union, and then Russia. But this one was different: for nearly three years, the U.S. Navy has been dispatching modified "boomers" to who knows where (they do travel underwater, after all). Four of the 18 ballistic-missile subs no longer carry nuclear-tipped Trident missiles. Instead, they hold up to 154 Tomahawk cruise missiles each, capable of hitting anything within 1,000 miles with non-nuclear warheads. [China confrontation] Cheonan]
• The Drums of War? Pentagon Provokes New Crisis With China
  by Rick Rozoff Global Research, July 10, 2010 Three news features appearing earlier this week highlight tensions between the United States and the People's Republic of China that, at least in relation to the language used to describe them, would have seemed unimaginable even a few months ago and are evocative more of the Korean War era than of any time since the entente cordiale initiated by the Richard Nixon-Mao Zedong meeting in Beijing in 1972. To indicate the seriousness of the matter, the stories are from Global Times, a daily newspaper published in conjunction with the People's Daily, official press organ of the ruling Communist Party of China, and Time, preeminent American weekly news magazine. Both accounts use as their point of departure and source of key information a July 4 report in Hong Kong's major English-language daily.
  That the U.S. currently has over 60 per cent of the Tomahawk cruise missiles assigned to its Japan-based Seventh Fleet near China emphasizes the qualitative escalation of Washington's show of strength vis-a-vis Beijing. One related to, as was seen above, a strategic shift of attack submarines nearer China and also to the crisis on the Korean Peninsula that was exacerbated by the sinking of a South Korean warship, the Cheonan, in March. There has even been speculation that U.S. submarine deployments and other "messages" delivered to China of late were designed to pressure Beijing into taking a tougher stance toward North Korea over the Cheonan incident. What journalists have been referring to as messages would in an earlier age have been called saber-rattling and gunboat diplomacy. U.S.-China relations sharply deteriorated this January when the Obama administration finalized an almost $6.5 billion arms sales package for Taiwan which includes 200 Patriot missiles. [11] An article on the subject in the New York Times on January 31 was titled, revealing enough, "U.S. Arms for Taiwan Send Beijing a Message."
  What alarms China most at the moment, though, is a proposed joint U.S.-South Korean military exercise in the Yellow Sea, enclosed by both Koreas to the east and China to the north and west. China's Global Times recently quoted Xu Guangqian, military strategist at the People's Liberation Army's Academy of Military Sciences, issuing this warning: "China's position on the Yellow Sea issue demonstrates its resolution to safeguard national rights and interests. It also reflects that China is increasingly aware of the fact that its strategic space has confronted threats from other countries." [27] China, which just concluded six days of naval drills of its own in the East China Sea, had more reason to be concerned when it was disclosed earlier this month that a U.S. aircraft carrier would join the maneuvers off its Yellow Sea coast. On July 8 China renewed its opposition to the planned U.S.-South Korean war games, with Foreign Ministry spokesman Qin Gang telling reporters, "China has expressed its serious concerns with relevant parties. We are firmly opposed to foreign military vessels engaging in activities that undermine China's security interests in the Yellow Sea or waters close to China." [28] An unsigned editorial in the Chinese Global Times of July 8 stated, "Beijing sees the joint exercise not only as being aimed at Pyongyang, but also as a direct threat to its territorial waters and coastline," and blamed South Korean President Lee Myung-bak for worsening relations between the two nations: "It is not known whether Lee had thought of China's reaction when he announced in May the drill with the US. "Did he foresee Chinese people's anger? Or, did he intend to provoke the country on the other side of the Yellow Sea? "It is a shame and a provocation on China's doorstep. "If a US aircraft carrier enters the Yellow Sea, it will mean a major setback to Seoul's diplomacy, as hostility between the peoples of China and South Korea will probably escalate, which Beijing and Seoul have been working for years to avoid." [29] President Lee met with his American counterpart, Barack Obama, on the sidelines of the Group of Eight summit in Toronto late last month, during which a previous arrangement to transfer wartime command of South Korean forces to the nation in 2012 were postponed if not abandoned. In Obama's words, "One of the topics that we discussed is that we have arrived at an agreement that the transition of operational control for alliance activities in the Korean peninsula will take place in 2015." In the five-year interim "if war were to break out on the Korean peninsula the United States would assume operational command of South Korean forces." [30] If Washington is planning direct intervention on the Korean Peninsula as its military buildup in the region, including off China's shores, might indicate, the words of former South Korean president Kim Young-Sam a decade ago are worth recalling. Two years after stepping down as head of state, Kim revealed to one of his nation's main newspapers that he had intervened to prevent a second Korean war, that his government "stopped US President Bill Clinton from launching an air strike against North Korea's nuclear facilities in June 1994." He initiated a last-minute phone conversation with the U.S. president which "saved the Korean peninsula from an imminent war," as "The Clinton government was preparing a war" by deploying an aircraft carrier off the eastern coast of North Korea "close enough for its war planes to hit the North's nuclear facilities in Yongbyon." Furthermore, Kim warned the U.S. ambassador in Seoul that "another war on the Korean peninsula would turn all of Korea into a bloodbath, killing between 10 and 20 million people and destroying South Korea's prosperous economy." [31] Any catastrophic event on the Korean Peninsula, and war is the ultimate cataclysm, could lead to hundreds of thousands of North Korean refugees fleeing to Russia and millions to China. [China confrontation]
• China Still Unhappy About S.Korea-U.S. Drill
  China on Tuesday reaffirmed its opposition to a joint South Korea-U.S. maritime exercise despite sweeping changes to the plan that would spare Beijing the sight of some of the biggest U.S. ships. Chinese Foreign Ministry spokesman Qin Gang commented on a Chosun Ilbo story that U.S. ships could be deployed in the East Sea for the drill, instead of the West Sea as originally planned. He said that there is no way to confirm the story. "Our position is clear as we've already said. We'll closely watch developments. Korean issues can't be fundamentally resolved by military means. Denuclearization of the Korean Peninsula and regional stability must be sought in a way that promotes reconciliation and peace, not damage the interests of the countries in the region and aggravate discord," he added. [Joint US military] [China NK] [China confrontation]
• Taiwan, mainland China to deepen economic ties
  •Publication Date:07/12/2010 •Source: Commercial Times Taiwan’s ruling Kuomintang and the Chinese Communist Party on the mainland made a joint proposal to strengthen cross-strait economic cooperation in various areas at the end of the sixth Cross-Strait Economic, Trade and Cultural Forum July 11. During the closing ceremony of the annual meeting, which ran from July 10 to 11 in Guangzhou City, the two sides announced 22 joint suggestions that recommended boosting comprehensive cooperation on economy and trade in emerging industries so as to sharpen the global competitiveness of both sides. The emerging industries in question included information, biotechnology, new energy and electric vehicles, sources familiar with the matter said. [FTA] [Straits]
• ECFA will help Taiwan integrate into global economy: WTO
  2010/07/05 19:16:00 Taipei, July 5 (CNA) The recent signing of a trade pact between Taiwan and China is expected to help Taiwan further integrate into the global economy, the World Trade Organization (WTO) said Monday. In an interview with the Central News Agency, WTO Director-General Pascal Lamy attached great significance to the economic cooperation framework agreement (ECFA) with Chi [Straits] [FTA] [Globalisation]
• A Time for Calmer Minds to Prevail
  By Jin Jingyi Despite emotions running high in both North and South Korea over the sinking of the South Korean warship Cheonan, with talk of war on both sides, now is not the time for confrontation and retaliation. The only solution can be found in dialogue and mutual understanding. Since South Korea’s military-civilian joint investigation concluded that the warship Cheonan was sunk by North Korea, with the loss of 46 South Korean sailors, the Korean Peninsula has been heading toward confrontation. Both Koreas have been talking about the possibility of war, in a dangerous game of chicken. The Korean Peninsula now faces its greatest crisis since the Korean War. How we deal with the Cheonan incident will strongly sway the political situation on the Korean Peninsula and in Northeast Asia. [Cheonan] [China NK]
• US State Department welcomes ECFA
  American Chamber of Commerce in Taipei Chairman Alan Eusden, right, urges Washington to quickly resume trade talks with Taipei after the cross-strait ECFA was signed June 29. (CNA)Publication Date:07/01/2010 Source: China Times By KP Washington “welcomes the increased dialogue and interaction” between Taiwan and mainland China represented by the cross-strait economic cooperation framework agreement, according to U.S. State Department acting deputy spokesman Gordon Duguid. Duguid’s remarks came during a daily press briefing June 29, after the historic trade pact had been sealed earlier that day. “We are encouraged by recent improvements in cross-strait relations and hope those relations will continue to expand and develop,” Duguid said. [Spin] [Straits] [US China]
• China smarts at US slap
  By Peter Lee As the People's Republic of China absorbs the impact of a resounding slap to the face administered by United States President Barack Obama in Toronto, it may have to rethink its attempts to form a win-win relationship of equals between China, North and South Korea, Japan and the US in North Asia.
• Exclusive! Full Text of The Korean Peninsula: Gunshots Cut Across 60 Years
  I have an article up at Asia Times, China smarts at US slap, concerning the US and ROK's highly successful effort to put China behind the 8-ball for refusing to join the chorus of condemnation of North Korea over the Cheonan sinking. An interesting sidelight to the article is China's halting attempts to establish an enlightened, honest broker position on matters pertaining to the Korean peninsula. In particular, I discuss after-the-fact Chinese censorship of an article in Xinhua's International Herald Leader that, for one brief, shining moment, acknowledged that North Korea actually started the Korean War on June 25, 1950. [Korean War cause]
• China Starts Live Fire Exercise at Sea
  China on Wednesday started a live fire exercise in the East China Sea ahead of a joint antisubmarine exercise by Korea and the U.S. A Unit of the People's Liberation Army began the drill in waters to the east of Zhoushan and Taizhou in Zhejiang Province, the official China Daily quoted the Defense Ministry as announcing. [Resurgence]
• China funds English TV news channel CNC World in push for soft power
  Low-key launch for state news agency's venture as controller promises news, not propaganda (8)Tweet this (34)Tania Branigan in Beijing The Guardian, Friday 2 July 2010 Article history China's state news agency launched an international English language news channel yesterday – the latest step in the government's multibillion-pound soft power push. The authorities hope expanding foreign language media will help promote the country's image and viewpoint, and ultimately challenge the BBC or CNN. But the low-key launch of Xinhua's new CNC World channel suggests that day is some way off. Despite early reports that in Europe it would be screened in supermarkets and outside embassies, a Xinhua employee said she believed it was available only via the internet. [Softpower] [Media]
• China's grand strategy in a post-western world
  William A Callahan, 1 July 2010 A number of different visions of China’s future as a leading world power are competing for public attention and influence. Among them are populist ideas that challenge Beijing’s official rhetoric about “building a harmonious world”, says William A Callahan. About the author William A Callahan is professor of international politics at the University of Manchester. His latest book is China: The Pessoptimist Nation (Oxford University Press, 2010)There is growing debate inside the People’s Republic of China about the country’s proper strategic goals. Many intellectuals and policy-makers are asking how China can convert its new economic power into enduring political and cultural influence around the globe. The key question they are seeking to answer is: “How would China order the (post-western) world?” Beijing’s official view - first outlined by Hu Jintao, China’s president, at the United Nations in September 2005 - is that China is guided by the notion of “building a harmonious world” (????). But two other visions of China’s purpose in the global arena are growing in influence alongside this one: an unofficial view of a Chinese-style utopian world society, and a quasi-official description of how China can compete to become the world’s “number-one power”. This article examines these different visions of China’s grand strategy in a post-western world, and suggests briefly what kind of response western powers might be best advised to take to them. [China rising] [Resurgence]
• Taiwan inks ECFA with mainland China
  Cross-strait relations are entering a new era with the ECFA's inking by SEF Chairman Chiang Pin-kung (left) and ARATS Chairman Chen Yunlin (right) in mainland China June 29. (CNA)Publication Date:06/30/2010 Source: Taiwan Today By Kwangyin Liu Taipei and Beijing signed a milestone economic cooperation framework agreement, along with a pact protecting intellectual property rights June 29, during the fifth round of talks between the two sides in Chongqing, mainland China. The agreements were inked at 2:30 p.m. by Chiang Pin-kung, chairman of Taiwan’s Straits Exchange Foundation, and his counterpart Chen Yunlin of Beijing's Association for Relations Across the Taiwan Strait. “During the past two years, the SEF and ARATS have convened four talks, signed 12 agreements and reached one major consensus,” Chiang said during the talks in the morning. “The hard-won normalization of cross-strait relations marks a win-win situation for both Taiwan and mainland China.” [Straits] [FTA]
• China's R&D Spending More Than Double Korea's
  China is emerging as a formidable rival to Korea in science and technology as it invests twice as much as Korea in research and development in the fields. According to the Korea Industrial Technology Association on Wednesday, China's 100 biggest companies invested a combined US$33.76 billion in R&D in 2008, 2.3 times larger than Korea's $14.72 billion. [China competition]
• China Returns U.S. Criticism Over Sinking of Korean Ship
  By ANDREW JACOBS and DAVID E. SANGER Published: June 29, 2010 BEIJING — Three days after President Obama emerged from a tense meeting with President Hu Jintao of China, and accused Beijing of “willful blindness” toward North Korea’s military provocations, the Chinese government on Tuesday continued the argument about how to handle its testy neighbor. In a regularly scheduled news conference, a spokesman for the Chinese Foreign Ministry dismissed American calls for a tough line against North Korea, most recently for the sinking of a South Korean naval ship. The spokesman, Qin Gang, suggested that Mr. Obama had overreached when he accused Beijing of “turning a blind eye” to what an international investigation concluded was a North Korean torpedo attack in March on the ship.
  Mr. Hu spoke only in generalities to Mr. Obama about the need for “peace and stability” on the Korean Peninsula, the official said. Those are traditional code words for doing nothing that could result in the collapse of the North Korean government, which could result in a flood of refugees into China and might eliminate China’s buffer with American forces in the South. [Cheonan] [Collapse] [China confrontation]
• China-Taiwan economic agreement to impact S.Korean industries
  China’s capital strength combined with Taiwon’s technological capabilities are expected to increase their competitiveness By Kim Kyeong-rak The Economic Cooperation Framework Agreement (ECFA) signed Tuesday between China and Taiwan appears likely to have a major impact on South Korean industries. In particular, information technology firms, which have frequently been in competition with Taiwan in the global market, have long been paying close attention to the increasingly close economic cooperation between China and Taiwan. For example, the Samsung Group, which accounts for a major part of the semiconductor, mobile phone, and LCD industries, held a meeting of its chief executives in May on the topic of cross-strait cooperation. [FTA]

• Has the Tipping Point in US-China Relations Been Reached?
  All Sticks, No Carrots, and the Occasional High Profile Insult This looks like a calculated slap in the face: The US president has accused China of "wilful blindness" in remaining silent over North Korea's suspected sinking of a South Korean warship in March. Barack Obama said he hoped that Hu Jintao, his Chinese counterpart, would recognise that North Korea crossed a line in the sinking of the Cheonan warship, which killed 46 South Korean sailors. [China confrontation] [Cheonan] [Client]
• Blindness to China's efforts on the Peninsula
  Source: Global Times [02:35 June 29 2010] Comments US President Barack Obama groundlessly blamed China for "blindness" to North Korea's "belligerent behavior" in an alleged attack on the South Korean navel vessel the Cheonan while speaking at the G20 summit Monday. His words on such an important occasion, based on ignorance of China's consistent and difficult efforts in pushing for peace on the peninsula, has come as a shock to China and the world at large. As a close neighbor of North Korea, China and its people have immediate and vital stakes in peace and stability on the peninsula. China's worries over the North Korean nuclear issue are by no means less than those of the US. The US president should have taken these into consideration before making irresponsible and flippant remarks about China's role in the region. The facts speak for themselves, and very clearly so: China has made tremendous efforts in preventing the situation on the Korean Peninsula from getting out of control, including in the aftermath of the Cheonan incident. Without China's involvement, there would not have been the Six-Party Talks, and the outbreak of yet another Korean War might well have been a possibility. It is thus not China that is turning a blind eye to what North Korea has done and has not done. Instead, it is the leaders of countries such as the US that are turning a blind eye on purpose to China's efforts. [China US strategy] [Cheonan] [China confrontation] [Resurgence]
• China in America's sanctions crosshairs
  By Peter Lee Stuart Levey, "father" of the North Korean atomic bomb, is back, and with him is the threat that the United States will deploy the most feared and dangerous weapon in its diplomatic arsenal - sanctions against foreign corporations and foreign banks - to advance its Iran and North Korea policies. Levey, director of the US Treasury Department's Office of Terrorism and Financial Intelligence (OTFI), returned to the spotlight with the announcement of US add-on Iran sanctions in the wake of United Nations Security Council (UNSC) Resolution 1929. China has a considerable amount of experience with Levey, mostly negative, and will be observing his actions on Iran and North Korea with a good deal of wary curiosity. With the exception of Secretary of Defense Robert Gates, Levey is the highest-ranking George W Bush administration holdover in the Barack Obama administration. The retention of the architect of financial sanctions against North Korea was a signal that Obama was much enamored of them as the "smart power" alternative to military force as a coercive instrument of American policy. Hopefully, the results for the US this time will not be as dire as North Korea's rush to the atomic bomb occasioned by the sanctions campaign of the Bush administration. [Sanctions] [Continuity]
• Chinese Drill to Counter S.Korea-U.S. Exercise
  The Chinese military is staging a live fire exercise in the East China Sea to the east of Zhejiang Province late this month as a joint naval exercise by South Korea and the U.S. in the West Sea looms. China's East Sea Fleet will stage the exercise from June 30 until July 5, the Wenzhou Wanbao newspaper reported Monday. It is an annual drill but the schedule has been moved up by 10 days from last year's July 10-15. The point where the Chinese Navy plans to stage its annual exercise is some 700 km south of South Korea's Taean Peninsula and is believed to constitute a counterweight to the massive U.S. naval presence the joint drill will bring to China's doorstep. In a notice on June 24, the Chinese military banned ordinary ships from traveling through those waters between midnight and 6 p.m. while the drill is being staged. The Hong Kong Ming Pao daily hinted that the drill is being staged to counter the joint South Korea-U.S. exercise, saying, "It is rare for the Chinese military to issue advance notice of the exercise." But Chen Hu, the editor of World Military Affairs, a magazine published by the official Xinhua news agency, told a semi-official Chinese media outlet that the drill is not just aimed at countering the joint South Korea-U.S. exercise. He said the drill, in which a large aircraft carrier fleet is participating, is a good training opportunity for the Chinese military and "will yield better results than in ordinary times." The Chinese Foreign Ministry and state-run media have expressed opposition to the joint South Korea-U.S. exercise, which includes the 97,000 ton-class aircraft carrier USS George Washington, saying it creates "new tension" in Northeast Asia [Joint US military] [Resurgence]
• China Has Only Itself to Blame
  U.S. President Barack Obama stepped up pressure on China during the G20 Summit in Toronto, urging Beijing to join international efforts to hold North Korea accountable for the sinking of the South Korean Navy corvette Cheonan. "And my hope is that President Hu [Jintao] will recognize as well that this is an example of Pyongyang going over the line in ways that just have to be spoken about seriously," Obama said. "I think there's a difference between restraint and willful blindness to consistent problems."
• Obama Urges China to Come Off the Fence
  U.S. President Barack Obama urged China on Sunday to join international efforts to condemn North Korea over the sinking of the South Korean Navy corvette Cheonan. "I think there's a difference between restraint and willful blindness to consistent problems," Obama told reporters at the end of the G20 Summit in Toronto. "And my hope is that President Hu [Jintao] will recognize as well that this is an example of Pyongyang going over the line in ways that just have to be spoken about seriously -- because otherwise we're not going to be able to have serious negotiations with the North Koreans." [China confrontation] [Cheonan]
• Korea’s future lies with China — economically
  By Sunny Lee Korea Times Correspondent BEIJING ? South Korea's security future lies with the United States, but its economic future lies with China, therefore, it should forge an effective "two-track strategy" to balance between the two powers. However, that would be a delicate task, said an internationally noted expert on the relationship between politics and economics. In the aftermath of the Cheonan incident, South Korea made a smart move to bring in the United States, its strongest ally, and that helped Seoul garner wide international support in condemning North Korea for its torpedoing of the navy frigate on March 26. Beijing's reluctance to point the finger at Pyongyang and blame it for the attack, however, has damaged its relationship with Seoul, making the already pro-American Lee Myung-bak administration further align with Washington. Some even voiced that South Korea and the United States should speed up a pending free trade agreement process as a way to bolster their alliance. But "economically speaking, South Korea's future is China. That's very clear," said Ian Bremmer, the president of Eurasia Group, a global political risk research and consulting firm, which has headquarters in New York and offices around the world. "I think what we need to recognize is that South Korea's long-term economic interest is really much more aligned with China. The growth of bilateral trade between the two countries is overwhelming. But its security interest is much more aligned with the U.S. [Realignment}
• Hu Jintao stops short (sic) of blaming NK for warship sinking
  Chinese President Hu Jintao remained non-committal Sunday in blaming North Korea for the deadly sinking of a warship in March at talks with South Korean President Lee Myung-bak, a repetitive stance that drew unusually blunt criticism from the U.S. leader, Yonhap News reported in Toronto. In a one-on-one summit with South Korean President Lee Myung-bak on the sidelines of a G-20 meeting in Toronto, Hu reasserted Beijing disapproves of any act that disrupts peace on the Korean Peninsula but stopped short of directly blaming North Korea, according to Lee's office, Cheong Wa Dae. "As North Korea's continued provocation poses a grave threat to the peace and stability on the Korean Peninsula and the Northeast Asian region, proper international cooperation is necessary to prevent its recurrence," Lee was quoted as saying. Hu replied, "I fully understand South Korea's position. Let's continue close consultations in the process of responding (to the issue) at the U.N. Security Council." South Korea has requested that the U.N. Security Council discuss punitive measures against North Korea for its deadly naval attack on the 1,200-ton corvette in March. Forty-six sailors were killed as the Cheonan sank from what a multinational probe concluded was the North's unprovoked torpedo attack. Hu said China "condemns and opposes any act that destroys the peace and stability of the Korean Peninsula," but did not name North Korea, repeating what Beijing usually says when South Korea, Japan and their western allies push for tough sanctions against the impoverished communist ally. [Cheonan] [Media]
• ECFA will help facilitate Taiwan's economic upgrade: top negotiator
  2010/06/27 21:06:03 Taipei, June 27 (CNA) Taiwan will stand a far better chance of becoming an Asia-Pacific trade hub and an operation center for Taiwanese business groups after a wide-ranging trade pact is signed with China later this week, a senior negotiator said Sunday. "The imminent cross-strait economic cooperation framework agreement (ECFA) will offer us fair opportunity to compete with member states of the Association of Southeast Asian Nations (ASEAN) in the vast Chinese market, which will make it much easier for us to transform into a regional trade hub, " said Straits Exchange Foundation Chairman Chiang Pin-kung. "Our geographical proximity to China, the cultural similarities across the strait, our huge investments there and our government's operational efficiency will complement the ECFA and help us in our quest to develop as a regional [FTA] [Hub]
• Joan Hinton, Physicist Who Chose China Over Atom Bomb, Is Dead at 88
  By WILLIAM GRIMES Published: June 11, 2010 Joan Hinton, a physicist who worked on the Manhattan Project, which developed the atom bomb, but spent most of her life as a committed Maoist working on dairy farms in China, died on Tuesday in Beijing. She was 88.
  In China she met her future husband, Erwin Engst, a Cornell-trained dairy-cattle expert, who went on to work on dairy farms as a breeder while she designed and built machinery. During the Cultural Revolution, they were editors and translators in Beijing. Ms. Hinton applied her scientific talents to perfecting a continuous-flow automatic milk pasteurizer and other machines. For the past 40 years, she worked on a dairy farm and an agricultural station outside Beijing, tending a herd of about 200 cows.
  She and her husband remained true believers in the Maoist cause. “It would have been terrific if Mao had lived,” Ms. Hinton told The Weekend Australian in 2008 during a trip to Japan. “Of course I was 100 percent behind everything that happened in the Cultural Revolution — it was a terrific experience.”
• Chinese nationalists increasingly strident
  By CHRISTOPHER BODEEN The Associated Press Friday, June 25, 2010; 12:12 PM BEIJING -- Upcoming joint U.S.-South Korean naval drills have sparked an unexpected outcry from Chinese nationalists, whose fiery rhetoric has been stoked by their country's rising economic strength and global clout. While North Korea often issues diatribes condemning the routine war games off South Korea, this time, it was Chinese blogs and websites that exploded in anger at word that an American aircraft carrier might join the drills, bringing it close to Chinese waters. Some hawks even urged their country's military to make its own show of force. "China should cover the Yellow Sea with ships and missiles and open fire and drive them back should the American military dare invade our territorial waters," a commentary on the popular ccvic.com news website demanded, though Beijing has given no sign it will make any military response. Such nationalist rhetoric jibes with a growing outspokenness among ranking members of the People's Liberation Army that is stirring concern abroad and could hamper China's quest to be regarded as a rising - and responsible - member of international society. [Resurgence] [Joint US military] [China rising]
• Chinese article admits N. Korea began war in 1950
  Feature in gov’t-backed magazine yanked from Net after Koreans see it June 26, 2010 A feature article from a Chinese magazine was struck from the Internet after news spread that it stated that the Korean War was started by North Korea’s invasion of the South. The lengthy feature in Xinhua’s International Herald Leader, timed for the 60th anniversary of the start of the war, had a time line that stated: “The North Korean military crossed the parallel on June 25th, 1950 and Seoul was taken in four days.” The article was widely distributed among Chinese news portals and agencies. After news of the story spread in Korean yesterday, the original article was found to have been deleted from all Web sites it had been posted on, including Xinhua. Textbooks for Chinese students still teach that the conflict was a civil war started by an invasion by the United States of the North. Pyongyang has always insisted the same thing. [Korean War cause] [Spin]
• China’s Export Economy Begins Turning Inward
  By EDWARD WONG Published: June 24, 2010 BEIJING — For years, Chinese leaders looked to the millions of poor workers from the country’s interior as the engine of a roaring export economy. They would move to coastal provinces, toil in factories and churn out the world’s household goods. Enlarge This Image These days, the workers are crucial for China’s economy in another way: They must start buying the very products they manufacture, spending their paychecks on lipstick and lingerie, plastic lawn chairs and plasma television sets. Officials see them as the linchpin of China’s move away from a lopsided economic model that relies too heavily on foreign consumption [Domestic demand]
• Korea, China to Start FTA Talks in Fall
  Seoul and Beijing will likely begin proper free trade negotiations early next year, Trade Minister Kim Jong-hoon told the Chosun Ilbo on Wednesday. [FTA]
• China to seriously study ROK ship sinking: Foreign Ministry
  English.news.cn 2010-06-22 21:06:14 BEIJING, June 22 (Xinhua) -- China said on Tuesday it was seriously deliberating on the joint investigation into the sinking of a Republic of Korea (ROK) warship and the responses of all parties. "The sinking of Navy frigate 'Cheonan' is a complicated incident, and China doesn't have the first-hand information. China will objectively and fairly deal with the incident in accordance with the facts," said Foreign Ministry spokesman Qin Gang at a regular press briefing. On March 26, the 1,200-ton Navy frigate "Cheonan," with 104 crew members onboard, went down off the ROK island of Baekryeong off the west coast due to an unexplained explosion. Forty-six sailors were killed. Seoul said after completing an investigation that the warship was torpedoed by the Democratic People's Republic of Korea (DPRK). But Pyongyang has denied its involvement in the incident. The ROK on June 4 formally referred the case to the United Nations Security Council. Qin said the Security Council was discussing the issue, and held an unofficial dialogue. "The statements by the ROK and the DPRK on that occasion will help the member countries of the Security Council to learn the situation." The 15-nation council on June 14 held two separate meetings with the ROK and the DPRK to discuss the sinking. Mexico's UN Ambassador Claude Heller, the council president this month, expressed grave concern over the incident after the close-door meetings. Qin again urged all sides to maintain calm and restraint, so as to avoid escalation of the situation. China would continue to strive for peace and stability on the Korean Peninsula, Qin said. On a question concerning the 60th anniversary of the outbreak of the Korean War, Qin said all sides should take the history as a mirror and value the hard-won peace and stability. All sides concerned should make joint efforts in this regard especially at such a critical time. China was a peace-loving country and it would develop friendly relations with countries in the region on the basis of the five principles of peaceful coexistence, and maintain peace and stability on the Korean Peninsula, he said. [Cheonan] [Evidence]
• Economic titan China needs to act like a leader
  Published On Thu Jun 17 2010 North Korean leader Kim Jong-il, centre, is one of the many dictators China supports. He is seen here with Chinese President Hu Jintao, right. Charles Burton Associate Professor of Political Science at Brock University Next week, Canada will host meetings that will see the G20 displace the G8 as the leading forum of industrialized nations. The meetings (G8 in Huntsville on June 25-26, and G20 in Toronto on June 26-27) will be a formal acknowledgement by the international community of the important new reality of China’s rise to global power.
  In the case of regimes that most seriously threaten world peace — such as Iran, Sudan and North Korea — China offers economic aid and manipulates its veto power in the UN Security Council to shield serious human rights violators or nuclear weapon proliferators from UN sanctions. In return, China derives privileged access to natural resources under the regimes’ control, especially oil and gas, and in ways that not only do not benefit local inhabitants but often poison the environment, affecting farming, fishing and the health of residents [China confrontation]
• China's Cheonan Dilemma
  We take it for granted that North Korea is dependent on China, but key parts of China are dependent on North Korea as well. BY DREW THOMPSON | JUNE 7, 2010 The biggest loser from the ongoing tensions surrounding the sinking of a South Korean vessel may not be Seoul, or Pyongyang, but Beijing. By refusing to condemn North Korea for its deliberate attack and sinking of a South Korean Navy corvette in March, China has lost hard-won credibility and reminded countries throughout Asia of the importance of the United States and its dominant presence in the Western Pacific. The recovery of the vessel, the Cheonan, and dredging the seabed revealed a smoking gun -- the remains of a North Korean torpedo. A South Korean report drawing upon the participation of experts from Australia, Britain, Sweden, and the United States and released in late May laid the blame squarely at the feet of North Korea, thus prompting the real aftershocks of the incident. [Cheonan] [China]
• China to become top favorite nation of Koreans studying abroad
  A growing number of South Koreans have been visiting China to study there in recent years, probably outnumbering those to the United States this year for the first time if the current trend persists, a report shows Monday. According to the education ministry, 66,806 Koreans went to China to study in 2009, up from 57,504 in 2008, 42,269 in 2007 and 29,102 in 2006. The population of students enrolling in universities and graduate schools in China increased twofold during the 2006-2009 period from 14,611 to 28,836, indicating a notable trend in which more are seeking degrees rather than short-term language training. The growth rate for students heading to the United States, the most popular overseas education destination, was slower, recording 68,124 in 2009 compared to 57,940 in 2006. Those going to Japan totaled a little over 18,000 last year, up from some 15,000 in 2006. China is soon expected to have more Korean students than the U.S., considering the comparatively rapid surge rate in the recent years, the report noted. Experts see the changing preference as a result of China's strong support for higher education and its influential status in the international community both politically and economically. "As the Chinese government has actively made investments to have its universities provide quality education, gain prestige and attract talented people, more Korean students seem to be heading (to China)," Ryu Ji-sung, a researcher at the Samsung Economic Research Institute, said. [China rising] [Education]
• Study to stir dollar-renminbi debate
  By Geoff Dyer in Beijing Published: June 18 2010 18:26 | Last updated: June 18 2010 18:26 China’s currency is considerably less undervalued against the US dollar than it was six months ago because of the cut in the Chinese current account surplus, according to research by two US-based academics. The level of the undervaluation of the renminbi against the dollar has fallen from 40 per cent at the end of last year to 24 per cent, say William Cline and John Williamson at the Peterson Institute for International Economics in Washington. Against a basket of the main trading currencies, the renminbi is now 14 per cent below its equilibrium rate, they said, compared with 21 per cent at the end of last year. The lower estimates come as political pressure is rising in the US to take action to force China to let its currency appreciate and ahead of a G20 summit in Canada next week when the renminbi could be a key issue.
• US defense secretary defends Taiwan arms sales
  Publication Date:06/18/2010 Source: United Daily News U.S. Senator Dianne Feinstein asked Defense Secretary Robert Gates June 16 what Beijing would have to do to ease its military posture in the Taiwan Strait for the Pentagon to reconsider arm sales to Taiwan. Feinstein, a senior Democrat and Senate Intelligence Committee chairman, visited mainland China and Taiwan earlier this month. She said willingness to redeploy weapons targeting Taiwan had been expressed in her meetings with some of the mainland leadership. Gates said U.S. arms sales are pursuant to the Taiwan Relations Act and it is up to Washington’s political leaders to decide whether to change the legislation and the way arms are sold to the island. “The decision on Taiwan arms sales is fundamentally a political one,” Gates said, adding that the Pentagon has no right to decide whether the U.S. should sell arms to Taiwan. [China confrontation] [Separatism]
• Frank Views from China About Korean War
  The Korean War was started by Stalin, who wished to establish pro-Soviet government in the Korean Peninsula, and Kim Il-sung, who wanted unified Korea, a leading Chinese academic told the state-run media Thursday. The Global Times quoted Shen Zhihua, the director of the Shanghai-based Center for Cold War International History Studies and professor of history at East China Normal University as making the remarks based on confidential documents released after the demise of the Soviet Union. [Korean War events]
• Kim Jong-il Demands Fighter Jets from China
  North Korea asked China to provide it with the latest J-10 fighter jets and other hardware but was rejected, it emerged Wednesday. According to a high-ranking source in the North, North Korean leader Kim Jong-il made the request to Chinese President Hu Jintao when he visited China in early May. But Hu apparently told Kim that China will protect and support him if attacked. Observers guess this is the reason why Kim left a day earlier than scheduled. One North Korean defector who used to be a high-ranking official said, "Kim is increasingly afraid of an attack by South Korean and U.S. forces" following the North's sinking of the South Korean Navy corvette in March. The North Korean leader therefore wanted to get his hands on the latest Chinese fighter jets to counter South Korea's F-15 and F-16 fighter planes. [Takeover] [Military balance] [China NK] [Cheonan]
• N.Korea and China to jointly develop two N.Korean cities
  The development project will be carried by a joint government body North Korea and China have reportedly agreed to from a management committee to jointly develop the Hwanggeum Plain of the North Korean cities of Nason and Shinuiju. As inter-Korean relations head toward a crisis situation due to the sinking of the Cheonan, China and North Korea have pushed economic cooperation at a fast pace. The two countries agreed upon economic cooperation during North Korean leader Kim Jong-il’s visit to China in May. A North Korea-related source with knowledge of the discussions that wished to remain anonymous said Wednesday that a party led by North Korea’s vice minister of trade visited Beijing last week. The party agreed to form a join development management committee to jointly develop with China the Hwanggeum Plain of Nason (Najin-Sonbong) and Shinuiju. He said that the two officials in charge would be the North Korean vice minister of trade and the Chinese vice minister of commerce.
  He said it appears, with North Korea in a situation in which it has no choice but to depend on China, that the matters agreed upon during Kim Jong-il’s visit to China are being pushed quickly. [China NK] [Cheonan] [IJV]
• Should China and the U.S. work together
  Adm. Mullen's Speech at the 2010 Asia Society Washington's Annual Dinner
  The question is, should China and the U.S. work together, lead together to promote regional stability? Washington's answer is and has been an unequivocal yes. Beijing's answer has been sometimes yes and sometimes no.
  The North Korean attack on a South Korean warship this spring was not only an egregious breach of the fragile peace on that peninsula, but also yet another example of the sort of provocation and premeditation with which the North regime continues to isolate itself and threaten its neighbors. We in the United States military stand firmly by our allies in the Republic of Korea and will move forward in keeping with international agreements to demonstrate that solidarity in coming weeks. I think it is of no surprise to anyone that we are planning maritime exercises to sharpen skills and strengthen collective defenses. [China confrontation] [Cheonan]
• Taiwan's 'early harvest' list bigger than China's: minister
  2010/06/15 21:43:58 Taipei, June 15 (CNA) Taiwan's "early harvest" list under its proposed trade pact with China is twice the length of China's in terms of the number of items and four times bigger in terms of value, Minister of Economic Affairs Shih Yen-shiang said Tuesday. In a brief to the legislature about the country's third round of trade talks with China that took place in Beijing Sunday, Shih said Taiwan has listed 500 categories of goods on its list, with an annual export value of US$12 billion, while allowing China to put 250 categories of goods on its list, with an annual export value [Straits] [FTA]
• 3 Koreans face drug charges in China
  June 15, 2010 Three South Koreans face drug charges that could bring the death penalty in China, after allegedly trying to sell a massive amount of methamphetamine, according to Seoul government sources. The trio - two men in their 40s and a third in his 60s - were recently arrested in China’s Yanbian region, bordering North Korea, a narcotics hot spot that has seen more than 900 people arrested on drug charges in the last year alone. Officials at the Korean consulate in Yanbian said Chinese police caught the men trying to sell 4.5 kilograms (10 pounds) of meth, and one of them was charged with holding an additional batch of 5.7 kilograms. Possession of more than one kilogram of methamphetamine or heroin carries the possibility of a death sentence in China. In April, the country executed four Japanese drug dealers, and 90 of the 239 South Koreans serving drug-related jail terms overseas as of March are imprisoned in China, according to the National Police Agency and National Intelligence Service. And many of them are arrested in Yanbian, the home of more than 800,000 ethnic Koreans and also China’s largest center of drug trafficking. [Drugs]
• China notifies Seoul it won’t support UN bid
  The Chinese government notified South Korea that it won't support Seoul's bid at the U.N. Security Council to slap punitive measures against North Korea with regard to the Cheonan issue, a news outlet said. Although diplomats from South Korea and China met in Beijing on Tuesday to discuss the Cheonan matter, the Chinese side expressed to the South that it doesn't see any reason to support a U.N. Security Council measure that would destabilize the Korean Peninsula, RFA said on Friday, citing a diplomatic source in Washington. During the meeting, a Chinese diplomat also said: "As you can see from the past roles played by China at the U.N. Security Council, China has worked to solve issues, by first judging what is right and what is wrong. China pursues the stability in East Asia," adding there is little possibility that China is likely to support the South's bid, the diplomatic source said. After returning from Beijing, South Korean Vice Foreign Minister Chun Yung-woo said there are areas for "further discussions" between South Korea and China, RFA said. On Monday in New York, South Korea plans to brief U.N. Security Council members on the Cheonan incident, but RFA said there is little chance that China is going to show up at the briefing. [Cheonan]
• ECFA seen as done deal
  2010/06/13 21:06:23 Taipei, June 13 (CNA) A proposed economic cooperation framework agreement (ECFA) across the Taiwan Strait is now seen as a done deal, as both sides have reached consensus on the text of the accord, the Straits Exchange Foundation (SEF) said Sunday. Each side's "early harvest" lists of goods and services to be subject to tariff waivers or easier market access terms under the agreement will be incorporated as appendices to the ECFA after being further verified by the two sides, the quasi-official intermediary body announced in a press statement. [Straits] [FTA]
• China says farewell to J-6 fighters
  People's Liberation Army Air Force held on Saturday an official farewell ceremony for the J-6, a Chinese-built version of the Soviet MiG-19 Farmer fighter aircraft, Chinese television reported. Although the Soviet Union stopped production of MiG-19s in 1957, the Chinese came to value the plane's agility and powerful armament and produced about 4,000 J-6 fighters from 1958 to mid-1980s. The J-6 was the core of the Chinese fighter fleet until mid-1990s. It was exported to many developing nations and took part in a number of armed conflicts, including the Vietnam War. China retired J-6s from combat duties in 2005. However, they have been used up to now in small numbers as remote control target drones and pilot trainers. The export version of the aircraft, the F-6, is reportedly still in active service in Iran, Myanmar, North Korea and Sudan. [Military balance]
• New cyberattacks in SKorea; sites suffer no damage
  The Associated Press Saturday, June 12, 2010; 5:02 AM SEOUL, South Korea -- Two South Korean government websites were struck by the second cyberattack in a week, but suffered no major damage, the government said Saturday. Most of the computers trying to access the websites were traced to China, the Ministry of Public Administration and Security said in a statement. The Korean Culture and Information Service and the Justice Ministry were the targets of the so-called denial of service attacks on Friday, in which large numbers of computers try to connect to a site at the same time to overwhelm the server, the statement said. The security ministry said it quickly blocked access by 274 computers with Internet Protocol addresses - the Web equivalent of a street address or phone number - mostly in China. On Wednesday, similar attacks originating from China occurred on a site run by the security ministry. The statement said it was investigating who was behind the attacks. Last year, government websites in South Korea and the U.S. were paralyzed by similar cyberattacks that South Korean officials believed were conducted by North Korea. South Korean media have reported that North Korea runs an Internet warfare unit aimed at hacking into U.S. and South Korean military networks to gather information and disrupt service. [Cyberwar]
• Local investment by China-based Taiwanese businesses growing: MOEA
  2010/06/12 15:54:11 Taipei, June 12 (CNA) The amount of inward investment by Taiwanese businesses in China totaled NT$22.1 billion (US$6.83 million) in the first five months of this year, achieving over 50 percent of this year's target of NT$38 billion, a Ministry of Economic Affairs (MOEA) official said Saturday. According to Ling Chia-yuh, director-general of the Department of Investment Services under the MOEA, investment from China-based Taiwanese businesses is expected to exceed [Straits] [FTA] [FDI]
• Making the most of Chinese aid to Africa
  It’s time to move beyond sterile arguments and accept China’s role in Africa. But it’s also time for China to enhance that role. JUNE 2010 • Steve Davis and Jonathan Woetzel The debate over China’s role in Africa continues to rage. One side contends that China is a rapacious neocolonial oppressor, while the other sees it as a miraculous alternative to decades of failed Western aid. To a large extent, however, facts on the ground have rendered this debate academic: China already has become an indisputably significant force in Africa’s development, with substantially increased commitments and engagements just in the past few years. Pragmatism argues for moving the discussion ahead, to how China’s involvement can reap the greatest benefit for both Africans and Chinese. African and Chinese leaders—along with interested outside parties, such as multilaterals, foundations, and nongovernmental organizations (NGOs)—should focus on three opportunities. The first is strengthening Africa’s economic-development strategies and capabilities at the national and regional levels. Second, China’s willingness to undertake additional strategic-development projects in Africa, including the recent emphasis on sustainable and results-driven models, should be supported. Finally, collaboration between Chinese institutions working in Africa and other donors or partners ought to be developed and encouraged. China’s role in Africa is dynamic, with deep historical roots and a wide range of ever-changing engagements and models that don’t lend themselves to black-and-white categorization. By pursuing these three opportunities, Africa and China can uncover new ways to promote economic development and the reduction of poverty on the continent.
• China, Russia still on fence on UN resolution
  Even though Clinton had ‘tough talk’ with Chinese leaders: source June 10, 2010 Seoul ramped up its efforts to get a UN Security Council reprimand for Pyongyang over the sinking of the Cheonan warship in March. But it remains to be seen if China and Russia, North Korea’s two allies, will get on board. The JoongAng Ilbo has learned that China is still protesting North Korea’s innocence - even after a dressing down by U.S. Secretary of State Hillary Clinton in late May. Some 10 members from the South Korean joint investigative team that probed the Cheonan attack flew to New York yesterday evening to brief 15 member countries of the Security Council. “The president of the UN Security Council [Mexican Ambassador to the UN Claude Heller] has asked us to come and brief the council’s member countries,” said a senior Foreign Ministry official. “Our plan is to finish the briefing by Thursday or Friday this week.” The members who flew to New York include Yoon Duk-yong, professor emeritus at the Korea Advanced Institute of Science and Technology and the team leader, and Army Lt. Gen. Park Jung-yi, the military chief of the civilian-military joint probe. The investigators will show video clips that reconstruct the night’s attack and other materials. [Cheonan] [Coverup]
• China’s Trade Rose in May; Surplus Grows
  By BETTINA WASSENER Published: June 9, 2010 HONG KONG — Chinese exports in May jumped 48.5 percent from the same period last year, the country’s customs agency reported Thursday, showing that the European debt crisis has not yet significantly dented international trade or crimped the pace of growth in one of the world’s fastest-growing major economies. Imports rose 48.3 percent from a year earlier, as domestic demand for raw materials and other goods was buoyed by a massive government spending program and a flood of easy credit from state-owned lenders. Both imports and exports were flattered by the very low level of trade a year earlier, when the global economy was mired in the depths of financial crisis and a economic recession. But the figures for last month, which made for a trade surplus of $19.5 billion, were much stronger than economists had expected, easing, at least for the time being, concerns that the global economy is about to slip into another recession. [Trade]
• China’s double standard on N. Korea
  By Kang Hyun-kyung Staff reporter China sided with the rest of the world to impose sanctions on North Korea last year after the latter launched missiles and conducted an underground nuclear test, condemning Pyongyang for escalating tensions on the Korean Peninsula. However, it has remained silent over the North torpedoing the South Korean Navy ship Cheonan, claiming the lives of 46 sailors in March. China's double standard on the reclusive state's belligerent behavior has prompted experts to speculate over its motives. Professor Kenneth Quinones, dean of research evaluation of Japan's Akita International University, told The Korea Times that there has been a change in China's policy toward North Korea since it supported the U.N. Security Council (UNSC) sanctions last year. "China's approval of U.N. sanctions last year caused an intense debate within the Chinese government over whether to use pressure or to try to induce North Korea's cooperation," the former U.S. diplomat said. [Cheonan]
• Ratf*ck Diplomacy
  I have an article up at Asia Times entitled Short shelf life for China-US reset. It draws on some interesting exchanges at the Asian defense ministers confab in Singapore ("The Shangri La Dialogue") over the weekend to draw the conclusion that a) South Korea is attempting, rather clumsily, to make domestic and international political hay with the Cheonan sinking; b) the South Korean electorate and the Chinese aren't buying it; c) the United States has bought into the strategy of exploiting the sinking and South Korea's desire for an enhanced regional profile to advance the "irresponsible China" argument as a justification for a central position for the U.S. in the North Asia security equation. [China confrontation] [Cheonan] [Lee Myung-bak]
• Short shelf life for China-US reset
  By Peter Lee The positive reset in United States-China relations that resulted in a united front on Iran sanctions will apparently be of short duration. United States support for South Korean President Lee Myung-bak's Cheonan policy is increasingly perceived by Beijing as an effort to isolate China strategically as well as diplomatically within Asia. Allegations of the nuclear ambitions of the Myanmar government will doubtless be raised by Washington as further evidence of China's irresponsibility and used as justification for the filling of the imputed security void in Asia by the United States.
  In a decade that has seen the world's most responsible hyperpower inflict the Iraq War and the great recession on the planet - at the same time that China's judicious economic management is credited with forestalling a second great depression - Webb's China-bashing probably elicited a cynical shrug in Beijing. However, as the South Korean and US diplomatic campaign evolved in the aftermath of the Cheonan sinking on March 26 with the loss of 46 lives, China has realized that the alleged irresponsibility of China is not only a staple of anti-China rhetoric in the US Congress; it is driving the "return to Asia" strategy of the Obama administration. In the public realm, US strategy has crystallized in the aftermath of the sinking of the corvette Cheonan that has been blamed on North Korea.
  Lee made the opportunistic decision to exclude China - arguably the most knowledgeable regional asset concerning North Korean capabilities and intentions - from the team convened to investigate the sinking of the Cheonan. Then, when the investigation's results were announced, again the opportunistic but diplomatically questionable decision was made to publicly pressure China to endorse a report that it had no hand in preparing and was somewhat less than the evidentiary slam dunk that it was made out to be in the South Korean and Western press.
  Instead, he proceeded with the next episode of what was apparently a pre-planned, choreographed campaign to exploit the sinking: his keynote address at the Shangri-La Dialogue, a yearly confab of Asian defense ministers held in Singapore.
  "There is a wide gap in the US attitude and policy to the two instances," said Major General Zhu Chenghu of China's National Defense University. He did not endorse the US-backed international finding that the North sunk the warship Cheonan with a torpedo.
  The United States has apparently made some moves to mollify Beijing, most notably by postponing US-South Korean naval exercises that China considered an unnecessary and provocative escalation of tensions. However, China's dissatisfaction with the US Asia strategy as pursued in cooperation with Lee Myung-bak implies that US-China ties will become fraught and filled with obstacles.
  However, it seems that China is in a better position to recognize and exploit the economic implications of its regional role than the United States, which needs an unwelcome environment of tension and confrontation to justify and project its military power into North Asia. [Cheonan] [China confrontation] [Myanmar] [US global strategy]
• China again appeals for restraint, calm over ROK warship sinking
  English.news.cn 2010-06-08 18:55:27 BEIJING, June 8 (Xinhua) -- China on Tuesday again appealed for calm and restraint by all concerned parties so as to avoid any further escalation of tension with regards to the sinking of the Republic of Korea (ROK) warship and the situation on the Korean Peninsula. "China has always been firmly committed to safeguarding peace and stability on the Korean Peninsula and has consistently held this position for dealing with related issues," said Foreign Ministry spokesman Qin Gang at a regular news briefing. Qin called for properly addressing related problems and maintaining peace and stability on the Korean Peninsula. At the invitation of the ROK embassy to China, ROK Vice Foreign Minister Chun Yung-woo is now visiting China and officials from China's Foreign Ministry will meet with him on Tuesday and Wednesday, according to Qin. The South Korean "Cheonan" warship sank on March 26 near the maritime border with the DPRK after an explosion, killing 46 sailors. [Cheonan]
• Keep U.S. Aircraft Carrier Out of Our Backyard, China Warns
  A state-run Chinese newspaper on Tuesday criticized the South Korean government for allowing the 97,000-ton aircraft carrier George Washington of the U.S. Navy's Seventh Fleet to join South Korea-U.S. military training scheduled late this month. In an editorial, Global News wrote the West Sea "is in proximity to China's political hub of Beijing and Tianjin. If a U.S. aircraft carrier comes into the West Sea, mainland China falls under the military strategic influence of U.S. military forces. The people of China will not accept South Korea having military demonstration involving a U.S. aircraft carrier." It added U.S. forces appear to regard China "as their largest potential enemy, exposing a lack of strategic mutual trust between the U.S. and China. If South Korea wants to develop trust with China, it will have to consider the sentiments of the people of China." The paper warned Seoul "will have difficulty taking any kind of step forward on issues concerning the whole Korean Peninsula without China's understanding and cooperation." What South Korea needs to do now is not to put pressure on China by frequently involving the U.S. and escalating tensions in Northeast Asia but seek ways to alleviate tensions in the peninsula, it added. [China confrontation] [SK China]
• China Says North Korean Shot and Killed 3 of Its Citizens
  By Edward Wong Published: June 8, 2010 SHANGHAI — The Chinese Foreign Ministry said Tuesday that a North Korean border guard shot dead three Chinese citizens and wounded one last week in northeast China, prompting the Chinese government to file a formal complaint. The shootings took place last Friday at the China-North Korea border by the Chinese city of Dandong, in Liaoning Province, said Qin Gang, a Foreign Ministry spokesman, at a regularly scheduled news conference in Beijing. The four Chinese were residents of Dandong, and the North Korean guard believed that they were engaged in illegal trade across the border, Mr. Qin added, according to a report by the Chinese-language edition of Global Times, an official newspaper.
• N.Korean Official Held in China for Drug Trafficking
  A North Korean provincial government official has been arrested by Chinese police on charges of drug trafficking, supporting claims that the North Korean regime has a direct hand in the trade. South Korean activist Do Hee-yoon quoting a source in China on Monday said that a 33-year-old official surnamed Rim from the Sinuiju city government's trade bureau was arrested by Chinese police on charges of drug trafficking in Dandong on the evening of March 2.
  Despite the danger, he had traveled to China to buy goods necessary for his younger sister's wedding scheduled for March 6 and take bribes. [Drugs] [toolkit] [Media]
• Vice FM leaves for China over warship sinking
  South Korea's top diplomat on U.N. affairs headed to China on Tuesday to convince Beijing to support Seoul's push to censure North Korea at the U.N. Security Council for the deadly sinking of one of its warships. Vice Foreign Minister Chun Yung-woo plans to meet with his Chinese counterpart, Cui Tiankai, during a two-day visit to Beijing. [Cheonan]
• In Chinese admiral's outburst, a lingering distrust of U.S.
  By John Pomfret Washington Post Staff Writer Tuesday, June 8, 2010 BEIJING On May 24 in a vast meeting room inside the grounds of the state guesthouse at Diaoyutai in Beijing, Rear Adm. Guan Youfei of the People's Liberation Army rose to speak. Known among U.S. officials as a senior "barbarian handler," which means that his job is to deal with foreigners, not lead troops, Guan faced about 65 American officials, part of the biggest delegation the U.S. government has ever sent to China. Everything, Guan said, that is going right in U.S. relations with China is because of China. Everything, he continued, that is going wrong is the fault of the United States. Guan accused the United States of being a "hegemon" and of plotting to encircle China with strategic alliances. The official saved the bulk of his bile for U.S. arms sales to China's nemesis, Taiwan -- Guan said these prove that the United States views China as an enemy. U.S. officials have since depicted Guan's three-minute jeremiad as an anomaly. A senior U.S. official traveling on Secretary of State Hillary Rodham Clinton's plane back to the United States dismissed it, saying it was "out of step" with the rest of the two-day Strategic and Economic Dialogue. And last week in Singapore, Defense Secretary Robert M. Gates sought to portray not just Guan, but the whole of the People's Liberation Army, as an outlier intent on blocking better ties with Washington while the rest of China's government moves ahead. But interviews in China with a wide range of experts, Chinese officials and military officers indicate that Guan's rant (sic) -- for all its discomfiting bluster (sic) -- actually represents the mainstream views of the Chinese Communist Party, and that perhaps the real outliers might be those in China's government who want to side with the United States. Guan's speech underscored that 31 years after the United States and China normalized relations, there remains a deep distrust in Beijing. [China confrontation] [In denial] {media]
• Seoul considers sending envoy to Beijing over Cheonan
  By Lee Tae-hoon Staff reporter The government is considering sending a senior diplomat to China to persuade the ally of North Korea to support Seoul's call to punish Pyongyang for its alleged torpedo attack against a South Korean warship in March, sources said Sunday. The move comes amid growing doubts about the effectiveness of Seoul's referring the sinking of its 1,200-ton frigate Cheonan to the U.N. Security Council (UNSC) Friday as veto-wielding China appears to be opposed to a coordinated global action against its impoverished neighbor. Minister of Foreign Affairs and Trade Yu Myung-hwan even admitted last week that China considers the Cheonan incident a domestic issue that needs to be resolved by the two Koreas and the nature of the maritime disaster makes it difficult for Seoul to convince the international community to take action. As the government fears its pledge to get even with the North over the incident may become empty rhetoric, it is considering dispatching a senior envoy to Beijing to convince Chinese officials on the need for the UNSC to draw up punitive measures against the North's terrorist act. [Cheonan] [Kaesong]
• What does China want?
  By Fareed Zakaria Monday, June 7, 2010 BEIJING Over the past few months, foreign diplomats have privately groused to me about a world power's arrogant foreign policy. Except that they're talking about China, not the United States. A senior official from a developing country said, on background, so as not to anger Beijing: "Chinese officials used to meet with us with a great sense of solidarity and warmth. Now they read us a list of demands." Diplomats in Beijing report that Chinese officials now treat them differently than they did just a few years ago. One complained that even getting meetings with senior officials had become difficult. "People I used to see routinely now refuse to give me an appointment," one said to me in Beijing last week. Some of this is understandable. Success breeds confidence, as Americans well know. And China has been very successful. [Resurgence]
• Cheonan investigator hounded for expressing doubts
  China Daily bulletin board thread on the Cheonan sinking [Cheonan] [Coverup]
• Beijing suspects false flag attack on South Korean corvette
  By Wayne Madsen Online Journal Contributing Writer May 28, 2010, 00:18 (WMR) -- WMR's intelligence sources in Asia suspect that the March attack on the South Korean Navy anti-submarine warfare (ASW) corvette, the Cheonan, was a false flag attack designed to appear as coming from North Korea. One of the main purposes for increasing tensions on the Korean peninsula was to apply pressure on Japanese Prime Minister Yukio Hatoyama to reverse course on moving the U.S. Marine Corps base off Okinawa.
  The presence of the USNS Salvor, one of the participants in Foal Eagle, so close to Baengnyeong Island during the sinking of the South Korean corvette also raises questions. The Salvor, a civilian Navy salvage ship, which participated in mine laying activities for the Thai Marines in the Gulf of Thailand in 2006, was present near the time of the blast with a complement of 12 deep sea divers. Beijing, satisfied with North Korea's Kim Jong Il's claim of innocence after a hurried train trip from Pyongyang to Beijing, suspects the U.S. Navy's role in the Cheonan's sinking, with particular suspicion on the role of the Salvor. The suspicions are as follows: 1. The Salvor engaged in a seabed mine-installation operation, in other words, attaching horizontally fired anti-submarine mines on the sea floor in the channel. 2. The Salvor was doing routine inspection and maintenance on seabed mines, and put them into an electronic active mode (hair trigger release) as part of the inspection program. 3. A SEALS diver attached a magnetic mine to the Cheonan, as part of a covert program aimed at influencing public opinion in South Korea, Japan and China. The Korean peninsula tensions have conveniently overshadowed all other agenda items on Secretary of State Hillary Clinton's visits to Beijing and Seoul. [Cheonan] [Coverup] [Motive] [Hatoyama]
• North Korea's Strategic Position
  Published: June 3, 2010 North Korea’s strategic position The article “Why Korea remains a tinderbox” (May 31) raises the familiar argument that China keeps supporting North Korea because an internal collapse of that country would generate “a flood of millions of hungry refugees” moving north rather than south. As China relatively easily could seal the frontier (they have to look no further for ideas than the DMZ minefield and the West Bank and Mexican borders), a look at the map of the region suggests a different explanation. North Korea provides a convenient platform for distracting two important allies of the United States — South Korea and Japan. The platform gives the opportunity to operate China-controlled military bases with direct access to the Sea of Japan and an exit to the North Pacific Ocean. The east coast of Russia, touching North Korea, blocks otherwise that access. This scenario also explains, why the now defunct six-party talks offered so much hope. Jens A. Jorgensen, Brussels [Bizarre] [China NK]
• China uses drones to spot opium fields
  The Associated Press Friday, June 4, 2010; 12:17 AM BEIJING -- China has begun using unmanned aircraft to track down illegal poppy crops being grown in the suburbs around its capital as part of a monthlong anti-drug campaign, police said Friday. Beijing police announced the start of the "Eagle Eye 10" campaign at a meeting Thursday, said an officer surnamed Zhang from the drug control department of the city's public security bureau. Like many Chinese officials he declined to give his full name. Police will be using unmanned drones for the first time, along with helicopters, to search out opium fields in Beijing and surrounding Hebei province. Authorities did not release specifics on how much opium is being cultivated in those areas. However, police arrested 2,138 people in Beijing in 1,600 drug cases from January through April, and seized more than 50 kilograms (110 pounds) of unspecified illegal drugs in the first four months of the year, the official Xinhua News Agency reported, citing the city's narcotics squad chief. The "skycam" drones, mounted with a camera capable of capturing high-resolution photographs, can fly as high as 6,000 meters (20,000 feet) and were tested several times in May, according to the Global Times newspaper. The drones will fly over the seven counties surrounding Beijing as well as parts of neighboring Hebei province. Thursday marked the anniversary of China's first crackdown against opium back in 1839, when a government official confiscated opium from British traders and destroyed them, triggering the start of the Opium War.
• China Says Timing 'Not Convenient' for Gates Visit
  U.S. officials say Defense Secretary Robert Gates has called off plans to travel to China this week because the Chinese government said the timing of a planned visit was "not convenient." Gates had hoped to visit China to discuss cooperation between the U.S. and Chinese militaries. U.S. officials did not give a reason for China's reluctance to host the defense secretary. The Chinese government has delayed several high-level military exchanges in recent months in apparent protest at Washington's decision in January to allow a major arms sale to Taiwan to go ahead.
• Secretary of Defense Robert Gates doesn't get hoped-for invite from China
  By Craig Whitlock Thursday, June 3, 2010 Defense Secretary Robert M. Gates departed for Asia on Wednesday but had to drop a big country from his itinerary after China, still smarting over U.S. arms sales to Taiwan, gave him the cold shoulder. Gates had been hoping for months to visit Beijing this summer, a destination that took on added importance at the Pentagon after North Korea -- which sees China as its closest ally and diplomatic protector -- was accused last month of sinking a South Korean warship with a torpedo, killing 46 sailors. Aides to Secretary of State Hillary Rodham Clinton had confidently predicted that Gates would be able to go to Beijing after meetings she held there last month. "I think you will see one of the take-aways over the course of the next couple of weeks, that suddenly Chinese friends might have time for Secretary Gates's visit," an official told reporters as Clinton flew back to Washington. But Beijing declined to extend an invitation.
• Flaws in pulling plug on North Korea
  By Francesco Sisci BEIJING - It is right, as the Washington Post said in its May 31 editorial, China has been shielding the regime of Kim Jong-il in North Korea that torpedoed and sank a South Korean warship on March 26. Although an international investigation blames North Korea, Beijing has refused to point the finger at Pyongyang. China is North Korea's main trading partner and main supplier of energy and food. Without China, North Korea could shrink and die. This shows that China is propping up a regime that deserves to be cast into history. China could conversely pull the plug on North Korea and the Kim dynasty and its minions, who oppress over 20 million Koreans, would disappear. [China NK] [Collapse]
• China and the Cheonan Incident
  By David Kang The Chinese are facing widespread criticism for their behavior following the Cheonan incident: Scott Snyder has called for China to change its priorities on the peninsula from preserving the status quo to pushing for change, while Victor Cha has argued that China has handled the incident badly and is harming its long-term interests and reputation in the region. In his national address on May 25, South Korean President Lee Myung Bak indirectly called on China to support South Korea’s position when he said that, “no responsible country in the international community will be able to deny the fact that the Cheonan was sunk by North Korea.” And at the U.S.-China Strategic and Economic Dialogue in Beijing this past week, U.S. officials impressed upon their Chinese counterparts that a cooperative response to the Cheonan incident is necessary and expected. [Cheonan] [China NK]
• Seoul asks Beijing to come and check sunken Navy ship
  By Na Jeong-ju Staff reporter South Korea has asked China to send a team of naval inspectors to Seoul to conduct its own investigation into the sinking of the Navy vessel Cheonan, but there has been no response yet, diplomatic sources here said Tuesday. "We told the Chinese days ago that we were ready to cooperate with its own probe, but are still not getting an answer," a source said on condition of anonymity. "We already shared the full results of the international investigation with China and Russia." China reportedly proposed a joint investigation with the United States and the two Koreas before taking any punitive action against North Korea. South Korea, following weeks of joint examinations with foreign experts, claimed the ship sank after being attacked by a torpedo from a North Korean submarine that had violated the inter-Korean sea border. Reports said North Korean leader Kim Jong-il, at a summit with Chinese President Hu Jintao in Beijing in early May, denied the North's involvement in the sinking. [Cheonan] [Evidence]
• China to be "impartial" on S. Korean warship sinking: premier
  07:56, June 02, 2010 Chinese Premier Wen Jiabao (R) is interviewed by public broadcaster NHK in Tokyo, Japan, June 1, 2010. (Xinhua/Pang Xinglei) Visiting Chinese Premier Wen Jiabao on Tuesday reiterated China's pledge to take an "impartial" stand on the sinking of a South Korean warship. "The sinking of the warship Cheonan is an unfortunate incident," Wen said during an interview with Japanese public broadcaster NHK. "We have offered condolences to the victims on many occasions." What China has in mind in approaching the incident, in which 46 South Korean sailors died after their warship sank in March, is maintaining peace and stability on the Korean Peninsula, he said. China attaches importance to the joint investigation conducted by South Korea and other countries and the reactions of various parties, and will take its position on the basis of truth and facts, he added. China appealed for calm on the part of the concerned parties so as to avoid a further escalation of tension and even conflict, he said. The Chinese premier said China understands the current difficult situation President Lee Myung-bak and the South Korean government are facing. China will seek information from various sources and seriously study it before making clear its stand in "a fair and objective manner," he said. "We will adopt an impartial position," he said. China also maintains that any approach on it must serve the fundamental interest of maintaining peace and stability on the Korean Peninsula, he added. Wen said Japan is an important country in Northeast Asia and a close neighbor of China and South Korea. China is ready to cooperate with Japan on such issues as safeguarding security in Northeast Asia, he added. Japan is the second leg of Wen's four-nation Asian tour, which has already taken him to South Korea. He will also visit Mongolia and Myanmar. [Cheonan] [Evidence]
• Wen urges diplomacy over S Korean warship sinking
  13:16, May 31, 2010 Email | Earlier in Seoul, Premier Wen Jiabao urged diplomacy from all sides regarding the March sinking of a South Korean warship. He said the pressing task is to properly handle the serious impact caused by the Cheonan incident, defuse tensions in the region, and avoid the possibility of war. Wen Jiabao urged Northeast Asian nations to help maintain regional peace and stability. He pledged that China will continue to enhance communication with relevant parties. [Cheonan]
• Government confirms Korea evacuation plan
  Publication Date:06/01/2010 Source: United Daily News Taiwan’s representative office in Seoul has prepared an evacuation plan for ROC nationals in the event of an escalation in tensions on the Korean Peninsula, according to the Ministry of Foreign Affairs May 31. Sources familiar with the matter said the plan calls for the establishment of an emergency contact center and task force headed by Chen Yeong-cho, Taiwan’s representative to South Korea.
• China slams Israel but quiet on Koreas
  By ASSOCIATED PRESS 01/06/2010 Spokesman says Beijing "appalled" at IDF flotilla raid. BEIJING — China has condemned the fatal IDF raid on a flotilla of Gaza-bound ships in which at least nine people were killed and dozens wounded. "China is appalled and condemns the Israeli navy's attack on the Turkish fleet shipping humanitarian aid to the Gaza Strip," Foreign Ministry spokesman Ma Zhaoxu said in a statement late Monday. Beijing's condemnation of the raid contrasts with the cautious position it has taken amid rising tensions between its neighbors. China has expressed no support for proposed UN sanctions against ally North Korea over its alleged sinking of a South Korean warship. "China urges Israel to abide by the relevant resolutions of the UN Security Council in every detail, and improve the humanitarian situation in the Gaza Strip," Ma said. While Beijing is not traditionally a heavyweight in Middle East diplomacy, China in recent years has become more active, seeing stability in the Middle East as helping to secure the oil and gas imports the Chinese economy relies on. China has previously criticized the government's move to build in east Jerusalem, saying it poses new obstacles to the Middle East peace process.
• Chinese Supercomputer Is Ranked World’s Second-Fastest, Challenging U.S. Dominance
  By JOHN MARKOFF Published: May 31, 2010 SAN FRANCISCO — A Chinese supercomputer has been ranked as the world’s second-fastest machine, surpassing European and Japanese systems and underscoring China’s aggressive commitment to science and technology. Related Times Topic: China RSS Feed Get Science News From The New York Times » The Dawning Nebulae, based at the National Supercomputing Center in Shenzhen, China, has achieved a sustained computing speed of 1.27 petaflops — the equivalent of one thousand trillion mathematical operations a second — in the latest semiannual ranking of the world’s fastest 500 computers. [China rising] [ICT] [Decline]
• Kim Jong-il told Hu that NK not involved in Cheonan
  During his secretive trip to China earlier this month, Kim Jong-il personally claimed, in his meeting with Chinese President Hu Jintao that North Korea was not responsible for the Cheonan sinking, a local daily said Saturday citing a government source. Citing an unnamed senior government official, the JoongAng Ilbo newspaper said during Kim's trip to China from May 3 to 7, he told Hu that "(The North) has nothing to do with the Cheonan." [Cheonan]
• Asia-Pacific Region Stands at Pivotal Point
  By Donna Miles American Forces Press Service WASHINGTON, May 7, 2010 – The Asia-Pacific region stands at a pivotal point in history as it draws on the strength of regional alliances and partnerships to contend with a broad range of threats and challenges, a senior defense official said yesterday. In remarks at the East-West Center’s Washington office, Wallace “Chip” Gregson, assistant secretary of defense for Asia and Pacific security affairs, cited the dramatic transformation in the region since the East-West Center’s main campus was established in Hawaii 50 years ago at a time of regional uncertainty.
  He noted steps the United States is taking to strengthen its deterrent capabilities, particularly in light of destabilizing activities in North Korea and China (sic). [China confrontation] [Spin] [Destabilisation]
• S.Korea, China, Japan Put Brave Face on Cheonan Differences
  President Lee Myung-bak, Chinese Premier Wen Jiabao, and Japanese Prime Minister Yukio Hatoyama in a joint press release about the sinking of the South Korean Navy corvette Cheonan after a trilateral summit in Jeju at the weekend did their best to paper over clear differences in opinion over how the matter should be handled. The three said they will "continue to closely consult and properly address the matter so as to maintain peace and stability in the region." The leaders of Japan and China "expressed their condolences over the loss of lives caused by the sinking and offered words of consolation to the bereaved families, and the people" of South Korea, it said. Hatoyama and Wen "stressed the importance" of an international investigation into the sinking and "took note of the reactions of various parties." [Cheonan] [Evidence]
• Tripartite summit confirms continuing rift with China
  Analysts say the S.Korean government did not obtain the degree of change originally sought in China’s stance on N.Korea The third South Korea-Japan-China summit, held Saturday and Sunday on Jeju Island. Attention focused on the summit as a test for the extent of support the South Korean government could elicit for international coordination in response to the Cheonan sinking, and cooperation from North Korea’s strong ally China in particular. China, however, did not display the degree of change in its stance that Seoul had hoped for. Instead, the summit once again revealed the stark difference of opinion between South Korea and Japan, which emphasized “resolute measures against North Korea,” and China, with its emphasis on “a restrained response and the peace and stability of the Korean Peninsula.”
  However, a closer examination of remarks made by the three countries’ leaders during the summit, and the content of their joint press conference and joint statement, shows that they moved on parallel tracks regarding the Cheonan issue, with South Korea and Japan on one side and China on the other. “I will regard the result of the joint investigation of South Korea and the international fact-finding team as important and respect the responses of the different nations,” said Prime Minister Wen during the Summit. Wen also said, “I also oppose and denounce any act that destroys the peace and stability of the Korean Peninsula.” During the press conference Sunday, Wen said that it was particularly important to avoid any clash and emphasized the need for the three nations to “consider one another’s positions regarding a momentous issue, deal appropriately with sensitive issues and strengthen political trust.” [Cheonan]
• China reportedly offered 4-nation probe on Cheonan
  China is reported to have proposed a new investigation into the Cheonan incident, participated in by both Koreas, China, and the United States, a local daily reported on Saturday. According to the vernacular Hankyoreh newspaper, China made the proposal through its U.N. mission in New York. It reported, citing a diplomatic source, who asked not to be named. South Korea has yet to respond to the proposal, it said, but its immediate attitude was cautious because it believed that the offer could be misused by the North as an opportunity to voice its claim for innocence. China's new proposal was partly a response to South Korea's earlier rejection of the North's offer to send its own investigators to the South to verify the South's accusations, it said. The piece was bylined by three journalists of the newspaper, an apparent sign that the information was crosschecked. No other major Korean-language newspapers carried the news, which, if verified, could potentially open a new direction in the Cheonan incident amid heightened inter-Korean tension since a team of multinational experts officially blamed North Korea for sinking the 1,200-ton South Korean navy ship in late March. [Cheonan] [Evidence] [Coverup]

• China urges efforts to ease tensions from ship sinking
  May 30, 2010 JEJU ISLAND- Chinese Premier Wen Jiabao stressed Sunday that it is "most urgent" for the two Koreas to defuse tensions and avoid conflict as Seoul seeks a host of punitive measures against the North for its deadly March naval attack. "What is most urgent for now is to dispel the impact from the Cheoan incident, gradually ease tensions, and especially avoid a clash," Wen said at a joint press briefing after two days of meetings here with South Korean President Lee Myung-bak and Japan's Prime Minister Yukio Hatoyama. Wen said the Northeast Asian nations should make joint efforts for peace and stability in the region, repeating his government's steadfast stance in dealing with North Korea. [Cheonan]
• A leg up on the competition
  May 29, 2010 Models showcase mini liquid crystal display televisions made by Haier Korea, the local unit of the Chinese electronics giant Haier Group, yesterday at the Press Center in central Seoul. The company aims to expand its business here and overcome its low-quality brand image by targeting thrifty consumers. The television pictured costs 290,000 won, which is almost the half the price of a similar product from a Korean brand such as Samsung or LG Electronics. The television has been introduced in more than 160 countries around the world. [YONHAP] [Image] [Chinese competition][Hai’er]
• China premier: Korean tensions must be defused
  By YOUNG-JOON AHN The Associated Press Sunday, May 30, 2010; 2:43 AM SEOGWIPO, South Korea -- Avoiding conflict between the Koreas over the sinking of a warship is an urgent task, China's premier said Sunday as Beijing appeared more engaged in the crisis despite withholding support for possible U.N. action against North Korea.
  Nevertheless, Wen used China's strongest language yet to describe the grave situation between its longtime ally North Korea and South Korea, a vital trading partner. "The urgent task for the moment is to properly handle the serious impact caused by the Cheonan incident, gradually defuse tensions over it and avoid possible conflicts," Wen said at a joint news conference with his South Korean and Japanese counterparts. "China will continue to work with every country through aggressive negotiations and cooperation to fulfill our mission of maintaining peace and stability in the region," he said after the meeting on the South Korean resort island of Jeju. Wen's comments were markedly different from those made last week by Chinese officials, who appeared reluctant to become involved or asked for more time to gather the facts about the sinking. [Cheonan] [Evidence] [Media]
• Ma opposes use of force on Korean Peninsula
  ROC President Ma Ying-jeou states his willingness to condemn any activity threatening to destabilize East Asia in an interview with Al-Jazeera. (CNA)Publication Date:05/28/2010 Source: United Daily News ROC President Ma Ying-jeou condemned any activity that undermines regional peace and opposes the use of force or provocation on the Korean Peninsula. “As a responsible stakeholder in East Asia, the ROC supports efforts by South Korea, the U.S. and Japan to maintain regional peace,” he said. “We are willing to take precautionary measures along with the international community to prevent the Korean crisis from further deteriorating.” [Cheonan]
• China proposes UN Military Armistice Commission convene for reinvestigation into Cheonan
  Observers say reconvening the dormant organization indicates a probable consensus between North Korea and China Amid inter-Korean relations speeding into a confrontation with no exit, China has put forth a new mediation offer regarding the Cheonan.?? A diplomatic source who requested anonymity said Friday that China had proposed to the U.S. to conduct a joint investigation with the participation of the UN Command, China and North Korea. The source said China made the offer last week through its UN delegation in New York, and that the offer called for convening the UN Command’s Military Armistice Commission, which has lost its function over time. The U.S. and China reportedly informed the South Korean government of the offer through the UN Command’s special investigation team for the Cheonan sinking following some final adjustments during China-U.S. strategic and economic talks in Beijing from May 24 to 25.?? In response, the UN Command special investigation team told the South Korean government that they will ask China’s People’s Liberation Army to rejoin the Military Armistice Commission, and will request the North Korean People’s Army also send representatives to the Joint Observer Team. The UN Special Investigation Team also reportedly stressed the need to resolve the Cheonan incident through dialogue. The UN Command Military Armistice Commission composed a special investigation team on May 22 to look into the cause of the Cheonan sinking.?? [Cheonan] [Evidence] [Coverup]
• Is China getting tough on North Korea?
  By Na Jeong-ju Staff reporter Is China changing its stance on North Korea? Amid growing international pressure on Beijing to play a proactive role to resolve the crisis brewing on the Korean Peninsula, there have been some signs suggesting a major departure from its unwavering support for its closest ally. What troubles China is the worsening international sentiment toward North Korea over its torpedo attack on a South Korean Navy vessel in March. How China will deal with the North is expected to be high on the agenda at a summit between President Lee Myung-bak and Chinese Premier Wen Jiabao in Seoul today. They will fly to Jeju Island the following day for three-way talks with Japan's Prime Minister Yukio Hatoyama.
• Clinton offers China proof of ship attack
  By Christian Oliver in Seoul Published: May 26 2010 06:43 | Last updated: May 26 2010 09:30 Hillary Clinton, US secretary of state, on Wednesday said the US would offer additional briefings and information to China to convince it that North Korea torpedoed a South Korean warship, killing 46 sailors in March. Beijing’s response to the sinking has been guarded and this makes it less likely South Korea will be able to marshal support for tougher sanctions at the United Nations Security Council. Mrs Clinton said a 400-page technical report on the sinking by an international team, including experts from the US, led to the “inescapable” conclusion North Korea was to blame and that action had to be taken. Should the Chinese need more information, she said the US would offer it. [Cheonan] [Evidence] [US dominance]
• Ma claims Korea tensions justify cross-strait policy
  Publication Date:05/27/2010 Source: Taiwan Today By Chiayi Ho ROC President Ma Ying-jeou said heightened tensions on the Korean Peninsula prove that his approach of pursuing rapprochement with Beijing is on the right track. “Having observed escalating tensions between Seoul and Pyongyang, I believe improving cross-strait relations is of great significance when it comes to maintaining regional stability,” Ma said while meeting a European Parliament delegation May 26. According to the president, the Korean Peninsula and the Taiwan Strait are considered Northeast Asia’s two “hot spots,” but tension between Taipei and Beijing has greatly eased since he took office May 20, 2008. [Straits] [Lee Myung-bak] [Cheonan] [Client]
• China Remains Noncommittal Over Cheonan Sinking
  China on Wednesday again refused to come off the fence over the sinking of the South Korean Navy corvette Cheonan. Chinese Vice Foreign Minister Zhang Zhijun told reporters ahead of Premier Wen Jiabao's upcoming tour of four Asian nations that Beijing regards the sinking as "very complicated." Asked if Wen would deliver the outcome of China's own review of the sinking to President Lee Myung-bak during their talks, Zhang said China is still gathering information but has not obtained any first-hand data yet. He said China has "noted the report and statement" from South Korea as well as "the response of other relevant parties." He urged a "fair and objective" handling of regional issues. [Cheonan]
• Chinese Newspaper Urges N.Korea to Prove Innocence
  A state-run Chinese newspaper urged North Korea to give an honest explanation of the sinking of the South Korean Navy corvette Cheonan proving it had nothing to do with the shipwreck. In an editorial on Wednesday, the Global Times, a sister newspaper of the official People's Daily, said the North must urgently prove its innocence providing "solid" evidence to prevent tensions on the Korean Peninsula from "spiraling into a regional conflict." The newspaper often serves as an outlet for Chinese government views on issues where the People's Daily is deemed too official. [Cheonan] [Evidence] [China NK] [Bizarre] [Inversion]
• China not assigning blame in South Korea sinking
  The Associated Press Thursday, May 27, 2010; 3:41 AM BEIJING -- China offered no indication Thursday of plans to join the U.S. and its allies in blaming North Korea in the sinking of a South Korean warship, saying the issue remained "extremely complicated." U.S. officials said Wednesday that China, a key North Korean ally, had indicated it is prepared to hold Pyongyang accountable for the March 26 torpedo attack and could join in some kind of formal rebuke by the U.N. Security Council. However, when asked about the investigation into the incident, Chinese Foreign Ministry spokesman Ma Zhaoxu merely repeated an earlier Chinese statement that fell short of assigning blame. "The issue is highly complicated. China does not have firsthand information. We are looking at the information from all sides in a prudent manner," Ma told reporters at a regularly scheduled news conference. [Cheonan] [Evidence]
• Intelligent design How do you sell design to a country with no brand culture?
  Thursday, May 27 2010 || Features || BY Mark Revington New Zealand companies contemplating business with China usually look to make or sell a product. Design company GardyneHolt wants to sell a service. It’s a tough sell in New Zealand where designers are a dime a dozen, but even tougher in China where a brand culture is almost non-existent. “It’s fair to say the Chinese in general don’t understand design and the intangibles around a brand because the Chinese economy hasn’t matured to the point where added value is clearly identified,” says managing director Michael Holt. Take the example of Holt’s father-in-law, who is the CEO of China’s third largest brewing company. It makes US$250 million a year without exporting a drop. When Holt suggests the company could do a lot more with its design and brand, his father-in-law has a simple reply. “He just asks why, when they already sell US$250 million worth. It’s a good point.” But China is a market with enormous potential, says Holt, and Chinese consumers are becoming increasingly brand focused [Brand]
• The Chinese juggernaut Why China holds the keys to the future of New Zealand exporting
  Tuesday, May 25 2010 || Features || BY Keith Ng It was a brutal year for New Zealand exporters, but it could have been worse. In 2009, the total value of our exports fell in 15 of our top 20 export markets — between Australia, the US and Japan alone we lost $2.4 billion. But amidst the carnage, China finally overtook Japan to become our third biggest export market, and it is exports to China that are leading the recovery.
• Korean tension harmful for Taiwan: CEPD
  2010/05/26 17:49:37 Taipei, May 26 (CNA) Tensions between South and North Korea will bring about more adverse effects for Taiwan than advantages, a top economic official said Wednesday. "The biggest advantage is that Taiwan might receive some orders previously placed with Korean firms and capital might also flow into Taiwan due to the conflict, " Christina Liu, the new minister of the Council for Economic Planning and Development (CEPD) , told legislators when asked about the possible impact. "But in general, there will be more downsides than upsides for Taiwan, " Liu told the Legislative Yuan's Economics Committee while acting in her capacity as CEPD minister for the first time. Even if there are positive effects on Taiwan's LED and DRAM industries, it will take a few months for them to come to light, she said. Previously tense relations between Seoul and Pyongyang have been further strained by speculation that a report to be released in the South on Thursday will blame the North for the sinking of a South Korean ship in March. (sic) Signing an economic cooperation framework agreement (ECFA) with China will provide a major fillip for Taiwan enterprises, she said, adding that businesses should seize the opportunity to forge alliances with multinationals because local companies will enjoy a 17 percent corporation income http://home.kyodo.co.jp/modules/fstStory/index.php?storyid=502850 Japan may restrict reentry by pro-N. Korea group members TOKYO, May 25 KYODO The Japanese government may restrict reentry into Japan by key members of a pro-North Korea group based in Japan as part of additional sanctions that would follow the deadly sinking of a South Korean warship in March, government sources said Tuesday. [Cheonan] [Sanctions] [Human rights] [Hatoyama]
• China Tells N.Korea to Restrain Itself
  China has urged North Korea to restrain itself over sanctions from South Korea, a senior Chinese official has told South Korean government officials. Beijing reminded Pyongyang that "peace and stability" are vital for the Korean Peninsula after an investigation implicated the North in the sinking of the South Korean Navy corvette Cheonan. Foreign Minister Yu Myung-hwan greets Chinese special envoy Wu Dawei (right) at the Foreign Ministry in Seoul on Tuesday. China's special envoy for Korean Peninsula affairs Wu Dawei, who is on a visit to Seoul, met Foreign Minister Yu Myung-hwan and other officials and told them of the warning. A government official said China "reiterated the importance of stability and peace on the Korean Peninsula and delivered the same message to the North," which is frantically rattling the saber. [Media]
• Korea tensions benefit Taiwan chip-makers
  Publication Date:05/25/2010 Source: Commercial Times Rising tensions between North Korea and South Korea could provide an opportunity for Taiwan’s dynamic random access memory chip makers to cut into South Korean firms’ share of the global market, according to Taiwan-based DRAMeXchange Technology Inc. DRAMeXchange—a leading global provider of market intelligence on major electronic components—said growing international concerns about the possible economic impact of the standoff on the Korean Peninsula could lead more downstream manufacturers to shift orders to Taiwan DRAM makers. [Cheonan] [Unintended consequences]
• China Should Remember Its Global Status
  President Lee Myung-bak will meet with Chinese Premier Wen Jiabao in Seoul on Friday. Earlier, U.S. Secretary of State Hillary Clinton is scheduled to speak with Chinese State Councilor Dai Bingguo in Beijing on Monday and Tuesday, having promised intensive talks with Chinese officials. Last week, South Korea unveiled the results of a multinational investigation presenting concrete evidence that a North Korean torpedo split the Navy corvette Cheonan in half and caused it to sink. Believing that North Korea violated UN regulations and the ceasefire agreement, the international community condemned the North and vowed to pursue sanctions. But China, a permanent member of the UN Security Council capable of vetoing sanctions, has yet to take any measures against Pyongyang. All that China has done so far is has a Foreign Ministry spokesperson urge "calm and restraint." [Cheonan]
• Diplomats say China against UN sanctions
  May 22, 2010 Even before North Korea was conclusively identified as the culprit behind the sinking of the South Korean Navy patrol corvette Cheonan, China had taken a stand against discussing the matter at the United Nations Security Council, diplomatic sources here said yesterday. According to one source, Chinese diplomats based in Seoul have been telling diplomats from other countries that taking the Cheonan case to the Security Council was “not a good idea” because it could “upset” the North. [Cheonan]
• Chairman Kim Jong Il’s Visit to China and Its Implications
  By Kang CHOI Since the beginning of 2010, rumors of an imminent visit by Kim Jong Il to China have been floating around.[1] It was not surprising then that during the investigation of the Cheonan incident and in the midst of a stalemate in the Six Party Talks, Chairman Kim traveled to China for a series of meetings with its top leaders, including President Hu Jintao. During these meetings, President Hu and Chairman Kim agreed to five points: to continue high-level personnel exchanges; to strengthen strategic communication over internal affairs and diplomacy; to deepen economic cooperation; to expand social, cultural and sports exchanges; and to cooperate on international and regional issues. Both leaders underscored a commitment to maintain the tradition of friendship between the two countries into the future. Chairman Kim also clarified North Korea’s position on the nuclear issue—his commitment to the denuclearization of the Korean peninsula and to joint efforts among the concerned parties to create an atmosphere conducive to the resumption of Six Party Talks. [China NK] [Cliché]
• US expert on NK raises possible US-China collusion
  By Sunny Lee Korea Times correspondent BEIJING ? South Korea should depart from its signature "quiet diplomacy" if it wants to take the Cheonan issue to the U.N. Security Council because neither the U.S. nor China will push the case hard enough, said an American expert Thursday. "You know, South Koreans always try to be very diplomatic with regard to Washington and Beijing. Now, you need to stop being diplomatic and be willing to complain in public," said Gordon Chang, the author of "Nuclear Showdown: North Korea Takes on the World," in a telephone interview with The Korea Times.
  Chang, who is a frequent commentator on CNN about North Korea, said: "I don't think right now the Obama administration has made up its mind about what to do. It's wavering. That's why South Korea needs to be very tough with the United States." He even suspects that the U.S. and China are colluding in a tradeoff. Namely, China signs the U.S.-initiated United Nations sanctions resolution on Iran, and the U.S., in exchange, sides with China in not agreeing that North Korea should be brought to the UNSC. "Basically what they are doing is, China said to the United States it would vote for the Iran sanctions if the U.S. won't [Cheonan][Evidence] [Bizarre]
• ROC urges Koreas to show restraint in ship sinking
  Publication Date:05/21/2010 Source: Taiwan Today By Chiayi Ho The ROC urged Seoul and Pyongyang to work together and avoid escalating tensions over the March 26 sinking of a South Korean warship near the disputed sea border between the two countries. “We are deeply concerned about the incident in which South Korea claims a North Korean submarine entered its waters and torpedoed the Cheonan corvette,” the Ministry of Foreign Affairs said May 20. South Korea’s official inquiry into the sinking, which comprises experts drawn from Australia, Sweden, the U.K. and U.S., concluded that a North Korean torpedo sent the ship to the bottom, killing 46 sailors. The experts are believed to have discovered a scrap of torpedo propeller and part of its central axle in the wreckage. On the latter is stamped a serial number, written in North Korean typeface. “In order to maintain stability in Northeast Asia and create prosperity in the region, the dispute must be settled in line with U.N. regulations,” the MOFA said. Following a rare emergency National Security Council meeting in Seoul May 21, South Korean President Lee Myung-bak described the incident as a “military provocation and violation of the U.N. Charter and truce agreement.” But given the gravity of the situation, Lee said his government would be “prudent” in tailoring its response to the sinking. “We cannot afford to have the slightest mistake.” Pyongyang, which maintains its innocence in the matter, reacted defiantly to Seoul’s accusations and said the peninsula was heading to war. “From this time on, we will regard the situation as a phase of war and will be responding resolutely to all problems in North-South relations,” the North’s Committee for the Peaceful Reunification of the Fatherland said. Pyongyang has offered to send its own investigators to look into the incident. But South Korea’s Ministry of Defense has reportedly no intention of permitting such a delegation. North Korea is coming in for heavy international criticism over the incident, and now faces condemnation from Japan, the North Atlantic Treaty Organization and the U.S. (JSM) Write to Chiayi Ho at Chiayi@mail.gio.gov.tw [Cheonan] [Evidence]
• (2nd LD) N. Korea used Chinese-made torpedo in attack on S. Korean ship: source
  Investigators have concluded that North Korea attacked a South Korean naval ship in March with a Chinese-made torpedo as they found Chinese writing in torpedo fragments collected from the scene, a senior government source said Wednesday. “Chinese- and Russian-made torpedoes, respectively, have the Chinese and Russian languages written inside,” the source said. “Chinese was written in torpedo” fragments collected from the scene where the 1,200-ton patrol ship Cheonan broke in half and sank on March 26, he said. [Cheonan] [Evidence]
• Investigators say S Korean warship torpedoed by DPRK, Pyongyang says to verify
  13:05, May 20, 2010 The Democratic People's Republic of Korea (DPRK) on Thursday rejected a conclusion drawn by a multinational team of investigators over warship Cheonan's sinking and warned that any retaliation could lead to an "all-out" war. A spokesman from the National Defense Commission of the DPRK rejected the conclusion as a "fabrication." The commission said it will dispatch inspectors to South Korea to verify the claim announced by a multinational team of investigators. President Lee Myung-bak has vowed to take "firm measures" against the DPRK over the sinking of its warship. "(We) will take firm measures against North Korea and make it admit its wrongdoings through strong international cooperation," Lee told Australian Prime Minister Kevin Rudd in phone talks. The group of civilian and military experts concluded early Thursday that the South Korean navy warship was torpedoed by a DPRK submarine and the torpedo was manufactured (sic) in the DPRK. [Cheonan] [Evidence]
• DPRK says to verify S.Korean claim over warship sinking, warns retaliation will triger "all-out" war
  English.news.cn 2010-05-20 11:12:32 SEOUL/PYONGYANG, May 20 (Xinhua) -- The Democratic People's Republic of Korea (DPRK) on Thursday rejected a conclusion drawn by a multinational team of investigators over warship Cheonan's sinking and warned that any retaliation will lead to an "all-out" war. A spokesman from the National Defense Commission of the DPRK rejected the conclusion as a "fabrication." The commission said it will dispatch inspectors to South Korea to verify the claim announced by a multinational team of investigators. [Cheonan] [Evidence] [Military option]
• China hopes for calmness, restraint over ROK warship sinking
  English.news.cn 2010-05-21 00:14:48 BEIJING, May 20 (Xinhua)-- China on Thursday says it has noted the investigation results released by the Republic of Korea (ROK) over the sinking of a ROK warship, calling on all parties to exercise calmness and restraint over relevant issues of the sinking. Foreign Ministry spokesman Ma Zhaoxu made the remarks at a regular press briefing when responding to questions. He said China upheld that all parties should exercise calmness and restraint, properly deal with relevant issues, and avoid escalation of the situation. After the sinking of the ship, China expressed condolences and sympathy to the ROK on many occasions for their casualties, which fully embodied China's understanding of the grief of the ROK government and people. Ma said China has always viewed and dealt with international and regional affairs in a fair and objective manner. China is always devoted to safeguarding regional peace and stability, and promoting the progress of the six-party talks on the denuclearization of the Korean Peninsula, he said, adding China was opposed to any activities which could run counter with the commitment. The 1,200-ton "Cheonan," with 104 crew members onboard, went down on March 26 near the South Korean island of Baekryeongdo off the west coast after an unexplained (sic)explosion, killing 46 crew members. [Cheonan] [Evidence] [China NK]
• China Falls Silent on Eve of Cheonan Probe Announcement
  China fell silent Wednesday as investigators were poised to announce findings of their probe into the sinking of the South Korean Navy corvette Cheonan on March 26, with all signs pointing to the conclusion that Beijing’s closest ally North Korea was behind the shipwreck. [Cheonan] [China NK]
• The Chinese Road to Pyongyang
  By John Delury
  May 14th, 2010 2010-05-14 NEW YORK – Kim Jong Il’s visit to China this week was a gentle reminder that the road to Pyongyang leads through Beijing. China is the only power that has remained engaged with North Korea, through many ups and downs, whereas Russia, Japan, the United States, and South Korea have all come and gone. By keeping a door open to North Korea’s leaders, China is making a substantial contribution to regional peace. This is bold diplomacy – for which China is given little credit – at a highly sensitive moment. Nevertheless, China’s “leverage” over North Korea is in part illusory. [Cheonan] [China NK] [Inversion]
• China Signals Displeasure with Cheonan
  Reaction China is apparently displeased that South Korea and the U.S. are maintaining strong cooperation after tentatively concluding that the Navy corvette Cheonan was sunk in a North Korean torpedo attack. Presidents Lee Myung-bak and Barack Obama discussed the matter on the telephone Tuesday morning and U.S. Secretary of State Hillary Clinton is expected to fly to Seoul for consultations. The Foreign Ministry plans to brief ambassadors from about 30 countries on the findings of an official investigation. But Chinese Ambassador Zhang Xinsen reportedly told the ministry that he will not attend the briefing and send charge d'affaires Xing Haiming on his behalf. It appears the decision was not made by Zhang himself but came from Beijing. [Cheonan]
• When Will China Come Off the Fence?
  Investigators probing the sinking of the Navy corvette Cheonan have apparently discovered a smoking gun -- pieces of a propeller from a torpedo believed to have sank the vessel -- that implicates North Korea. They compared the collected pieces with a North Korean torpedo sample that was retrieved in the West Sea seven years ago and also analyzed traces of gunpowder found in the wreckage of the Cheonan, a government official said. The government is to announce the results of the investigation on Thursday. The next task is to gain the support of the international community to come up with effective sanctions against North Korea. [Cheonan]
• New Zealand Expo 2010 Shanghai
  Website for the NZ presence at the Shanghai expo
• China's Military Spending: Soft Rise or Hard Threat?
  By Sean Chen and John Feffer, May 6, 2010 Introduction The rapid growth of China’s economy and its increasingly vigorous diplomatic engagement with regional and international institutions have given rise to much discussion of China’s “peaceful rise” to great-power status. At the same time, the Pentagon has identified China as the only potential hegemon on the horizon that stands a chance of challenging the unipolar power of the United States. These two views of China—as a largely benign global partner or as a military superpower-to-be—rely on different understandings of a critical factor: the Chinese military budget. According to the Chinese government, the country’s rising military budget reflects general economic growth, is devoted to non-threatening expenditures like better pay for soldiers, and remains only a small percentage of what the United States spends every year on the military. Critics, however, argue that China vastly underreports its military expenditures and that the country is acquiring new power-projection capabilities that change the regional balance of power. [China rising] [China confrontation] [Military expenditure]
• Chinese Envoy Downplays Claims of N.Korean Guilt
  Zhang Xinsen Chinese Ambassador to Seoul Zhang Xinsen on Monday downplayed evidence that North Korea was behind the sinking of the South Korean Navy corvette Cheonan on March 26. "Findings revealed so far seem to show that there is no solid evidence for who did it," Democratic Party Campaign Committee spokeswoman Kim Yoo-jung quoted Zhang as saying in a meeting with DP chairman Chung Se-kyun. The remarks reflect Beijing's discomfort as Seoul and Washington ready themselves to strengthen cooperation after tentatively concluding that the ship was sunk in a North Korean torpedo attack. The official findings of the investigation are expected Thursday. "Findings that have been leaked seem to leave some room for review. It seems that there is no solid evidence," Zhang was quoted as saying. [Cheonan] [Evidence]
• Clinton appeals for funding at Shanghai Expo site
  Mon, Nov 16, 2009 SHANGHAI - US Secretary of State Hillary Clinton on Monday appealed to American firms to sponsor the US pavilion for next year's World Expo in Shanghai, saying their support would strengthen Sino-US ties. Clinton, who is visiting China with US President Barack Obama, made the appeal during remarks to existing and prospective sponsors at the site where the 61-million-dollar pavilion is being built in the eastern financial hub. "Now is the time to join this effort. We want to assemble the strongest team of partners possible," Clinton said. She thanked companies that have already pledged money for their belief "in what this USA pavilion can do to strengthen cooperation and partnership between the American people and the people of China." The United States was the last major country with diplomatic ties to China to sign up for what has been billed at the biggest-ever Expo, which will see 70 million visitors pour into Shanghai from May through October. The US delay in confirming its participation had threatened to strain the relationship between Beijing and Washington, as a World Expo without a US pavilion would have been a massive loss of face for the host nation. The US finally formally agreed in July to participate in Expo 2010, but has had difficulty raising the full amount required to build and operate the pavilion. Unlike other countries, US law prohibits its national Expo pavilions from being taxpayer- funded without special legislation. [Incompetence] [Expo10]
• What's the story behind the USA Pavilion? It shouldn't be Clinton.
  When we first read that New York Times article about Secretary of State Hillary Clinton's support of the USA Pavilion effort here in Shanghai, something didn't sit quite right with us. It's not that the facts didn't seem correct or anything - but almost no mention was made about why Clinton stepped in to raise money in the first place. Wasn't there already a group of people meant to do that? According to the story, Clinton has had to battle both the worries of government lawyers (why is the nation's chief diplomat asking for money?) and the huge amount of money needed to be raised in such little amount of time to do her good deeds: This time, the cash-starved beneficiary was not her own campaign but the United States, which needed $61 million to finance the construction of a national pavilion at a world’s fair in Shanghai. Under federal law, no public money could be used for the project. And Mrs. Clinton, as a federal official, could no longer solicit private financial donations herself. So she turned to her well-established network of Clinton fund-raisers, and after negotiating with the State Department’s lawyers about what she could legally do herself to support the project, she mounted an ambitious fund-raising campaign that has netted close to $54 million in barely nine months. In short, Clinton gets the goods by opening her Rolodex, changing stratagem for convincing corporate sponsors (by going from "patriotism!" to "hey, did you notice how big the market in China is?") and infusing her own friends/supporters into the USA Pavilion staff. But wait! That's just one part of the story, and to us not even the most interesting. As Adam Minter of Shanghai Scrap points out: Let’s be clear here: the reason that Clinton had to become involved at all is because the private group authorized to design, build, and fund-raise the pavilion had - by early 2009 - shown themselves to be completely incapable of accomplishing what they’d been authorized to do by the State Department. Barboza and Landler blame this failure on the economic crisis, the Olympics, the US election and State Dept restrictions prevented a solid effort. But what they don’t acknowledge is that - by early 2009 - the members of the USA Pavilion, Inc [the legal entity is known as Shanghai Expo 2010, Inc] had alienated a vast swatch of the expatriate business community in Shanghai ("arrogant" and "abrasive" are common adjectives used in regard to the members of USA Pavilion, Inc), numerous potential US corporate donors, and even high-ranking members of the Chinese government. [Incompetence] [Expo10]
• For Shanghai Fair, Famous Fund-Raiser Delivers
  By MARK LANDLER and DAVID BARBOZA Published: January 2, 2010 WASHINGTON — In the hectic last week before she became secretary of state, Hillary Rodham Clinton squeezed in a Bon Jovi benefit concert in New York, part of a frantic effort to pay off the debt from her presidential campaign. No sooner had she arrived at the State Department than Mrs. Clinton discovered she needed to start raising money all over again. Skip to next paragraph Enlarge This Image Nir Elias/Reuters At the U.S. Pavilion site in Shanghai, current and former N.B.A. players appeared with the 2010 Expo mascot in September. From left are Caron Butler, Gheorghe Muresan and Wes Unseld. This time, the cash-starved beneficiary was not her own campaign but the United States, which needed $61 million to finance the construction of a national pavilion at a world’s fair in Shanghai. Under federal law, no public money could be used for the project. And Mrs. Clinton, as a federal official, could no longer solicit private financial donations herself. So she turned to her well-established network of Clinton fund-raisers, and after negotiating with the State Department’s lawyers about what she could legally do herself to support the project, she mounted an ambitious fund-raising campaign that has netted close to $54 million in barely nine months. [Incompetence] [Expo10]
• US congressmen urge Obama to sell Taiwan F-16s
  Publication Date:05/17/2010 Source: United Daily News A total of 136 members of the U.S. House of Representatives May 12 urged U.S. President Barack Obama to approve arms sales of 66 F-16 C/D jet fighters to Taiwan as soon as possible. The jetfighters are necessary if Taiwan is to withstand possible attacks from mainland China, the representatives wrote in a joint letter. Initiated by Congress members Shelley Berkley, Gerald Connolly, Phil Gingrey and Lincoln Diaz-Balart, the co-chairpersons of the Taiwan Caucus, a congressional group friendly to Taiwan, the letter praised the Obama administration’s recent decision to make US$6.4 billion in weapons, including the Patriot Advanced Capability 3 system, available to Taiwan. [China confrontation] [Separatism]
• Japan, China Differ Over Cheonan Sinking
  The foreign ministers of South Korea, China and Japan met Saturday and Sunday in Gyeongju to discuss the sinking of the South Korean Navy corvette Cheonan. Japan expressed support for the tentative conclusion reached by South Korean and U.S. investigators that a North Korean torpedo was responsible, but China did not mention any connection with the North. Foreign ministers attending trilateral talks drink traditional Korean rice wine or makgeolli at a dinner in Gyeongju on Saturday. From left Japan's Katsuya Okada, Korea's Yu Myung-hwan, and China's Yang Jiechi /AP-Yonhap Japanese Foreign Minister Katsuya Okada "again expressed condolences over the Cheonan sinking and support for the government's efforts to investigate it objectively despite the difficult conditions," said Foreign Ministry spokesman Kim Young-sun. Immediately after the sinking of the Cheonan, Tokyo told Seoul it is willing to cooperate in any response or economic sanctions the South and the U.S. intend to undertake. But while expressing condolences for the South Korean sailors who died aboard the Cheonan, Chinese Foreign Minister Yang Jiechi merely reaffirmed Beijing's stance that "a scientific and objective investigation is important." Yang did not mention the possibility of a link between North Korea and the shipwreck. [Cheonan]
• S.Korea and China remain divided over Cheonan responses
  Diplomatic strategy has diverged over differing prioritization of resuming six-party talks and resolving the issue of the sinking of the Cheonan South Korea and China are once again showing a clear difference in position on the sinking of the Cheonan and the issue of six-party talks. The nations have showed a stark contrast in both policy priorities and policy approaches on both issues, which have become key variables in the political situation on the Korean Peninsula. During the fourth foreign ministers’ meeting held by South Korean, Japanese and Chinese foreign ministers’ Saturday in Gyeongju, North Gyeongsang Province, China emphasized the importance of resuming the six-party talks over a response to the Cheonan situation. Meeting with journalists following the tripartite meeting, Japanese Foreign Minister Okada Katsuya said, “China talked about issues such as a specific method for resuming the six-party talks and other related issues.” An official with the Japanese Foreign Ministry also told South Korean journalists on Sunday, “China stressed that the six-party talks are the best method of achieving denuclearization on the Korean Peninsula and said that it was doing its best as chair nation for the resumption of the six-party talks.” China also showed a clear temperature differential from the South Korean government with regard to the Cheonan situation. [Cheonan] [Evidence]
• Beijing’s rebuff made Kim cut China trip short
  Request for extraordinary aid denied, as China adhered to UN sanctions May 17, 2010 BEIJING - China told North Korean leader Kim Jong-il during his recent visit that it will respect international sanctions imposed on Pyongyang and refused to provide extraordinary economic assistance, an informed source here told the JoongAng Ilbo. According to the source, the Chinese government’s position prompted Kim to cut short his stay in China. “At the luncheon between Chinese Premier Wen Jiabao and Kim on May 6, the Chinese government informed the North that China will not provide aid outside the framework of the United Nations Security Council sanctions against Pyongyang,” the source said. “After Beijing’s position was explained, Kim shortened his schedule in China.” [China NK] [Sanctions]
• China calls for objective probe of Cheonan
  By Jung Sung-ki Staff reporter The foreign ministers from South Korea, Japan and China met Saturday in Gyeongju for talks on a host of bilateral and regional issues. The March 26 sinking of South Korean corvette Cheonan in the West Sea (Yellow Sea) was a key topic for the meeting, as a multinational investigation team has been struggling to find convincing evidence on what caused the incident. South Korea is increasingly pointing to North Korea as the culprit behind the disaster that claimed the lives of 46 sailors. According to Kim Young-sun, spokesman for South Korean Minister of Foreign Affairs and Trade Yu Myung-hwan, Chinese Foreign Minister Yang Jiechi was short of pointing to North Korea and instead called for a ``scientific and objective investigation.'' Some pundits say Yang's remark is construed as China's moderate stance not to point the finger at North Korea without undeniable proof. [Cheonan] [Evidence]
• With Solar Valley project, China embarks on bold green technology mission
  By Andrew Higgins Monday, May 17, 2010 DEZHOU, CHINA -- Uprooting the last traces of rural life on the edge of this northern Chinese city, laborers with chain saws spent a recent morning cutting down trees to make way for a hulking factory. A big red banner trumpeted the future for what used to be farmland: "The Biggest Solar Energy Production Base in the Whole World." Across China, villages are being turned into pollution-belching industrial zones, but nature's retreat on the outskirts of Dezhou boasts a paradoxical purpose -- protecting nature. "This is an experiment. It is a big laboratory," said Huang Ming, an oil industry engineer turned solar energy tycoon, who is driving one of China's boldest efforts to promote, and profit from, green technology. [Green]
• Ma reiterates commitment to leading Taiwan down a green path
  2010/05/16 19:54:31 Taipei, May 16 (CNA) President Ma Ying-jeou, who vowed to boost the development of green energy in Taiwan during his election campaign, reiterated his belief Sunday that Taiwan must follow a green path in the future. On a visit to Delta Electronics, Inc., one of Taiwan's green technology leaders, Ma said global industrial development trends have led the administration to give "green industries" the same importance as the information and [Green]
• Kim Jong-il goes to Beijing
  May 15th, 2010 Author: Tom Rafferty, Peking University Kim Jong-il was in China last week, his first overseas trip since he made the same journey in 2006. Entering China via train, the North Korean leader visited Dalian and Tianjin before journeying to Beijing for a rare high-level summit with Chinese President Hu Jintao and members of the Politburo’s Standing Committee. The visit was widely reported as yielding an ambiguous commitment from Kim ‘to discuss creating favorable conditions’ for restarting the Six-Party Talks on denuclearisation. This will be considered of little value in Seoul and Washington considering the ongoing investigation into the sinking of the Cheonan. Although official rhetoric about the ‘traditional friendship’ between the Democratic People’s Republic of Korea (DPRK) and China suggests the contrary, Kim was a reluctant visitor to Beijing. He is above all an insular and nationalist leader, who bridles at external interference, and espouses the principle of juche (normally translated as national ’self-reliance’). Unlike his father, Kim Il-sung, who was schooled in north-eastern China and joined the Chinese Communist Party, Kim has no personal connection to North Korea’s more powerful neighbour. Since UN sanctions were imposed following the DPRK’s second nuclear test in May 2009, Kim has consistently sought to open a bilateral dialogue with Washington rather than fall back on Beijing’s support. He fears the implications of growing steadily more dependent on Chinese aid and assistance. Around 90 per cent of North Korea’s energy imports are reported to come from China. [China NK]
• The Cheonan sinking and Kim Jong Il’s China visit: Now what?
  Author: Narushige Michishita, GRIPS, Tokyo May 12th, 2010 If North Korea did indeed sink the South Korean frigate Cheonan, it must have had three major objectives in mind.
  First, Pyongyang wanted to create a situation where the signing of a peace agreement appears to be a strategically good option for the United States. [Cheonan] [NK US policy]
• Facebook becomes new gov't tool to promote Taiwan-China trade pact
  2010/05/13 20:53:13       Taipei, May 13 (CNA) Taiwan's top China policy-making body is using an online game on the social networking Web site Facebook to try to boost public support for a proposed trade agreement with China, which it hopes to sign in June.   [FTA]
• Chinese Defense Minister Urges Caution Over Cheonan Sinking
  Chinese Defense Minister Liang Guanglie met with South Korean veterans in Beijing on Wednesday and advised caution over the sinking of the South Korean Navy corvette Cheonan. A participant quoted Liang as telling a delegation from the Retired Generals and Admirals Association, "It is not advisable to reach a conclusion based on a preconceived idea about the cause of the Cheonan sinking." Liang expressed his sympathy over the disaster but added, "Even when the final result [of the investigation] is out, it is necessary to deal with it in a cool-headed and prudent way for the peace and stability on the Korean Peninsula." [Cheonan]
• Soros is revealed as key Alibaba investor
  By Kathrin Hille in Beijing Published: May 14 2010 13:50 | Last updated: May 15 2010 00:06 George Soros has become one of Alibaba.com’s largest shareholders after buying into the company late last year, according to the Chinese e-commerce provider. The involvement of the US billionaire investor was revealed on Friday by David Wei, chief executive of Alibaba.com. The news came as Alibaba Group, the website’s parent, said it was ready to buy out Yahoo, which holds a 39 per cent stake in the parent. [Going out]
• North Korea must stop playing nuclear games
  Global Times [02:36 May 13 2010] Comments North Korea announced Wednesday a breakthrough in its nuclear fusion technology, leaving the whole world shocked and confused. Very few experts from the rest of the world believe that the purpose of the country's nuclear fusion is for electric-ity generation. Instead, it is believed unanimously that the real purpose is to make a hydrogen bomb. North Korea is dancing haphazardly along the nuclear tightrope, fraying the nerves of every world power. It is apparently proud, believing that it has played a dominant role. But North Korea fails to realize that the most dangerous role is the one the country itself is playing. Like a prancing tightrope walker, North Korea has sought to hold its audience's attention by jumping about in supposedly daring feats. But ultimately, it has only increased its own risk factor. It must be born in mind by North Korea that it is playing a dangerous game with Northeast Asian powers while rely-ing on its considerably weak national strength. It has successfully found leverage in bargaining with the rest of the world time and again, but it still lacks the strength to truly take advantage of that leverage. Nuclear weapons do play a crucial role in deterring external invasion. But invasion by foreign powers is not a serious threat facing North Korea, and possession of the nuclear weapons themselves is actually far more danger-ous. North Korea should not continue to increase the strategic risks it faces. There are two critical factors neces-sary for the current nuclear game to continue. First, the powers involved in the North Korean nuclear crisis would have to be willing to continue playing the game because it would be in their own interests. That is certainly not going to happen. Second, North Korea could realize economic independence, and further isolate itself from the rest of the world. Or, it could reform its current system and keep getting economic aid from outside. Undoubtedly both are beyond its reach. As soon as possible, North Korea should jettison the nuclear risks the country faces - risks it will not be able to bear in the long term. Doing so would show that North Korea is taking responsibility for the system it has created, and is serving the interests of its own people. It would also benefit the Chinese people, who have shown nothing but friendship and goodwill toward North Korea for many decades. North Korea's national security can only be truly safeguarded through an approach that protects its own interests and is acceptable to the rest of the world. As its friend, China understands the difficulties North Korea is facing, and realizes that the nuclear crisis impasse was not made by North Korea on its own. China is committed to facilitating the complete elimination of all remnants of the Cold War in Northeast Asia. It is dedicated to creating a sturdier environment of peace on the Korean Peninsula. Even so, nothing can substitute for the efforts North Korea itself must make to realize [Media] [China NK]
• To Congo, With Trouble
  Antonaeta Becker LONDON, May 11 (IPS) - A massive barter deal with the Democratic Republic of Congo trumpeted by China as a showcase of its "win-win" strategy in Africa has been hit by charges of corruption, a court case, and a barrage of western criticism. The surprise onslaught is causing Beijing to suspect a plot to undercut its expanding presence in the resource-rich continent. "It is now clear that western countries don't want to see China's influence grow in Africa," says Duan Hongwu, a Beijing-based analyst who has been following China's investment in Congo. "The barter deal is an obvious 'double win' -- it helps Congo convert its rich mineral resources into a real economic capital. At the same time it takes care of China's abundant foreign reserves by finding a suitable outlet for investment." [China confrontation] [Going out] [ODI]
• What Does N.Korea's Growing Reliance on China Mean?
  Chinese President Hu Jintao met with visiting North Korean leader Kim Jong-il in Beijing on Wednesday and reportedly called for "stronger strategic communication" including “the internal affairs of both countries," major diplomatic problems and international and regional circumstances. It is rare in global diplomacy to see the leaders of two UN-member countries pledge "strengthened communication about internal affairs." [China NK]
• China Urges Calm Over Cheonan Sinking
  The Chinese press and experts are taking a positive view of North Korean leader Kim Jong-il's expression of willingness to return to the six-party nuclear talks. Kim was reported as saying he is keen to create "favorable conditions" for the talks. Jin Linbo of the China Institutes of Contemporary International Relations under the Chinese Foreign Ministry, said, "His remarks about his country's return to the six-party talks fell a little short of expectations, but they weren't bad. It would have been difficult for him to declare an unconditional return now that South Korea and the U.S. are not keen to resume talks until after the investigation" of the South Korean Navy corvette Cheonan. [Cheonan]
• N.Korea Cleans Up Chinese Statements About Kim Jong-il's Visit
  North Korea's state-run media on Saturday issued a belated report on Kim Jong-il's visit to China and meeting with Chinese President Hu Jintao last week. Sanitized Statements At first glance, the North Korean report is no different than the version of China's official Xinhua News Agency on Friday, but it makes no mention of Hu saying he wished to "bolster strategic communication about diplomatic matters and internal affairs" nor of Premier Wen Jiabao saying he wished to "introduce China's experience in market-opening measures." [Media]
• China Must Explain What Happened During Kim Jong-il's Visit
  North Korean leader Kim Jong-il appears to have held a marathon summit with Chinese President Hu Jintao at the National People's Congress Hall on Wednesday that lasted around four-and-a-half hours and included a dinner. Then on Thursday, Kim reportedly boarded his armored train to return to Pyongyang. But even on Thursday, four days after foreign media spotted Kim in China, Beijing's Foreign Ministry said that it had "no information to provide."
• Kim Jong-il Returns Home After China Visit
  North Korea on Friday confirmed that Kim visited China this week but kept mum about whether he met with his Chinese counterpart Hu Jintao. Kim "paid an unofficial visit to China from May 3 to 7 at China's invitation," the North's official Korean Central News Agency said. Kim began his fourth and final day in China by visiting a biotechnology complex on the outskirts of Beijing. He then returned to the Diaoyutai State Guesthouse and is said to have met with Chinese Premier Wen Jiabao over lunch. He had been expected to watch the premiere of a North Korean version of the Chinese classic "Dream of the Red Mansion" by an opera troupe from the reclusive country but instead wrapped up his visit. The entire trip covered a total distance of more than 2,500 km. Although he was seen still dragging his left leg due to a stroke in 2008, Kim managed to keep up the busy schedule, laying to rest speculation that his health is failing, according to experts. He visited Dalian, Tianjin and Beijing by train and car and stopped by ports and industrial sites in the three cities. He met with provincial government and business officials in Dalian and Tianjin and attended nearly five hours of talks and state banquets in Bejing. An armored train allegedly carrying North Korean leader Kim Jong-il leaves Beijing on Thursday. /Reuters-Newsis One purpose of Kim's trip seems to have been to demonstrate that he still has a firm enough grip on power to risk leaving his country. But the main goal was probably to beg economic aid from his country's ally as the North is in dire straits in the wake of a botched currency reform. The Chinese leadership rolled out the red carpet for Kim, putting all their overseas appointments on hold to greet him. Chinese Vice President Xi Jinping, widely expected to become China's next leader, accompanied Kim during his visit to the biotech complex, according to Japanese media reports. A diplomatic source in Beijing said, "Kim has achieved all his goals simply by successfully wrapping up his trip to China." Diplomatic sources in Beijing claim China has agreed to provide North Korea with 100,000 tons of food and close to US$100 million in aid including basic necessities and energy. The 100,000 tons is more than one-third of the total amount of food North Korea imported from China last year and is enough, experts say, to deal with the immediate food shortage. Whether the price was a promise from Kim to return to six-party denuclearization talks will not be known until China makes some kind of official announcement. Any such announcement would lack luster as South Korea and the U.S. are saying the talks should resume only after an investigation of the sinking of the South Korean Navy corvette Cheonan is concluded.
• Kim Jong-il Ends China Visit
  North Korean leader Kim Jong-il headed back to Pyongyang on Thursday afternoon after wrapping up a four-day visit to China. Kim was expected to reach home on Friday morning. Kim's 40-car motorcade was spotted leaving the Diaoyutai State Guesthouse in Beijing at 4:10 p.m. and arrived at Beijing Station at around 4:25 p.m. His armored train entered Beijing Station five minutes later and left with Kim aboard at around 4:35 p.m. Sources near the border said security was beefed up at Dandong Station near the border with North Korea. Before heading back to Pyongyang, Kim met with Chinese Premier Wen Jiabao at the Diaoyutai State Guesthouse, where the two leaders are said to have discussed bilateral economic cooperation and aid.
• China refutes criticism from S.Korea over Kim Jong-il’s visit
  Analysts say this is an unusually strong statement in light of the fact that China still has yet to officially confirm Kim Jong-il’s visit » A heavily tinted and armored train believed to be carrying North Korean leader Kim Jong-il goes past Dongbian watchtower after leaving Beijing Railway Station May 6, 2010.(REUTERS) China is openly refuting criticism from the South Korean government for agreeing to North Korean leader Kim Jong-il’s visit. Chinese Foreign Ministry spokeswoman Jiang Yu said during a regular briefing Thursday that the matter of deciding which foreign leaders are accepted for diplomatic visits is an internal Chinese matter and remains within the scope of sovereignty. This was in response to a question regarding protests by the some members of the South Korean government over China’s decision to allow the visit while the matter of the sinking of the Cheonan is still pending. This is an unusually strong statement coming at a time when China still has yet to officially confirm Kim’s visit. Jiang said Kim’s visit and the sinking of the Cheonan are two separate issues, and that as far as she has heard, there has been no official protest from the South Korean side. The Huanqiu Shibao, a weekly magazine on world events published by the Chinese Communist Party’s People’s Daily, opened fire in a long piece Thursday quoting analysis by experts, saying that South Korea is thoughtlessly making an array of statements about Chinese foreign policy and has gone so far as to summon the Chinese ambassador to put pressure on him, but it makes no sense to criticize China for Kim’s visit.
• Lee’s diplomacy comes under fire
  May 07, 2010 Facing down criticism that North Korean leader Kim Jong-il’s trip to China spells a diplomatic failure for South Korea, Blue House officials yesterday defended their capabilities, claiming that there is no rupture between Seoul and Beijing.
• Why does China continue to support North Korea?
  By Andrei Lankov Korea Times columnist So after months of rumors and a couple of false reports, Kim Jong-il finally departed for China. This time his visit produced a palpable irritation in Seoul. Suspicions about Pyongyang's involvement in the Cheonan disaster are mounting, so some South Korean politicians saw China's willingness to invite the North Korean leader as a sign of tacit support for Pyongyang's policy. This led to an outpour of critical statements, which are certain to have no impact on China's actions, of course.
• NK leader’s trip tests Seoul-Beijing ties
  By Na Jeong-ju Staff reporter North Korean leader Kim Jong-il's China visit is expected to provide a turning point in the 18-year-old diplomatic relations between South Korea and China, amid growing calls here for Beijing to play a more responsible role in reducing tension on the Korean Peninsula. Reports said China failed to share any information with South Korea on Kim's trip, which came only three days after a summit between President Lee Myung-bak and President Hu Jintao in Shanghai, last Friday. Kim reportedly met with Hu in Beijing Wednesday.
• Red China, Green China
  By BRUCE USHER Published: May 6, 2010 WITH the disastrous oil spill in the Gulf, talk has once again turned to clean energy. What few people appreciate is that the demand for everything from solar panels to energy-efficient light bulbs is already booming. Worldwide, $162 billion was spent in new clean-tech investments in 2009 alone. The United States, with its expertise, capital and entrepreneurial spirit, is well positioned to dominate what could easily be the biggest market of the 21st century. But as the most recent delay over the Senate energy bill shows, the country is missing a key ingredient in shaping an effective clean-tech policy: the political will to encourage the innovation, manufacturing and investment necessary to bring these new technologies to market. And the longer America drags its feet, the more it cedes this enormous potential source of national wealth to the only other country able to capture it — China. [Green] [China competition]
• Kim Jong-il Arrives in Beijing
  North Korean leader Kim Jong-il arrived in Beijing on Wednesday and apparently met with Chinese President Hu Jintao at the Great Hall of the People. It was the third day of Kim's China trip. A car carrying Kim was seen leaving the Diaoyutai State Guesthouse around 5 p.m. and entering the Great Hall of the People about 20 minutes later. A diplomatic source in Beijing said, "Since welcome dinners normally start at 7 p.m., it is highly likely that Kim attended the dinner after meeting with Hu for about an hour." But there is speculation that Hu was not available and the two meet Thursday instead. What is certain is that Kim had dinner with Chinese leaders like Chairman of the Standing Committee of the People's Congress Wu Bangguo, Premier Wen Jiabao, and Vice President Xi Jinping. On Thursday, Kim is expected to hold a series of talks with Chinese leaders and watch a performance of the Chinese classic "Dream of the Red Mansion" by a North Korean opera troupe alongside Hu at the Beijing TV Grand Theater. A convoy of vehicles allegedly carrying North Korean leader Kim Jong-il and entourage drives along Changan Avenue in downtown Beijing on Wednesday afternoon. /Yonhap Before coming to Beijing, Kim stopped at Tianjin around 7:30 a.m., where he toured Binhai New Area, a local economic center, escorted by Zhang Gaoli, the local party secretary. He then changed cars and arrived in Beijing around 3:30 p.m., where he took a rest at Diaoyutai's No. 18 Villa. In the afternoon, when a convoy of vehicles carrying Kim and entourage arrived in Beijing, Changan Avenue and nearby roads in downtown Beijing were closed to traffic. The area near the Great Hall of the People was also under strict security, with armed police standing guard.
• Kim Jong-il's Tour of Chinese Business Centers Is Pointless
  North Korean leader Kim Jong-il visited the new economic zone of Binhai on the outskirts of Tianjin on Wednesday, the third day of his visit to China. Earlier this week, Kim was in the port and financial center of Dalian in Liaoning Province on Monday and Tuesday. Kim spent half of his trip visiting major industrial sites in northeastern China before arriving in Beijing to meet the leadership.
• China Should Stop Propping Up Kim Jong-il's Terror Regime
  North Korean leader Kim Jong-il visited Dalian as the first leg of his China trip and spent one night in the port city before heading to Jinzhou. His final destination appears to be Beijing.
• N.Korean Troupe Bring Chinese Classic to Beijing
  The official Chinese news media have given extensive coverage of the upcoming premiere of a North Korean version of the Chinese classic "Dream of the Red Mansion" by an opera troupe from the reclusive country. North Korean leader Kim Jong-il, who is in Beijing, is tipped to watch the show with Chinese President Hu Jintao. The Chinese press is all abuzz about the show but has been silent about Kim's visit, which is officially secret. Some 198 members of Phibada Opera Troupe arrived in China by train on Sunday, a day before Kim's departure from Pyongyang. The performance runs at the Beijing TV Grand Theater from Thursday through Sunday.
• S.Korea-China relationship on the brink
  The Lee Myung-bak administration’s protests against Kim Jong-il’s visit to China may be a sign of shifting diplomatic relations » Unification Minister Hyun In-taek, right, and Chinese Ambassador to South Korea Zhang Xinsen pause for an awkward moment while seated at the reception room in the Central Government Complex, May 4. A number of South Korean officials are issuing a series of “public protests” to the Chinese government in response to North Korean leader Kim Jong-il’s visit. Measures Taken against the Chinese Ambassador to South Korea and Diplomatic Propriety A number of observers are saying that First Vice Foreign Minister Shin Kak-soo’s decision to summon Chinese Ambassador to South Korea Zhang Xinsen on Monday to protest China’s acceptance of Kim’s visit essentially constitutes diplomatic interference. Diplomatic customs limit the ability of officials to summon an ambassador to issue strong protests over an issue pertaining to its own nation.
• Kim, Hu hold talks in Beijing
  2010-05-05 22:21 Voiceware Text Woori sale plan to be unveiled next month Kim, Hu likely to hold summit Thursday in Beijing [Photo News] Children’s Day First Islamic investment fund approved Smartphones transform offices Music touches hearts of Sorok residents Korean companies heat up World Cup frenzy [Photo News] Daewoo construction family walk [Photo News] LG Electronics Cafe Phone Kia K5 gives Hyundai Sonata run for its money Two discuss six-party talks, economic aid North Korean leader Kim Jong-il met with Chinese President Hu Jintao yesterday to discuss efforts to rejoin the six-nation nuclear talks and Beijing’s economic aid to the impoverished state, sources said. The two were believed to have held a summit meeting before the welcome dinner which usually starts at around 7 p.m., diplomatic sources in Beijing said. After the summit and dinner with Hu, Kim is expected to meet with Chinese Premier Wen Jiabao, who visited Pyongyang in October, and Vice President Xi Jinping today.
• Female North Korean defectors priced at $1,500
  Rev. Chun Ki-won, director of Durihana Association By Lee Tae-hoon Staff reporter Young female North Koreans have become a commodity in China, where they can be purchased at around $1,500 per head, according to Rev. Chun Ki-won, director of the Durihana Association. [Refugee reception] [Sanctions]
• North Korean Leader Can’t Avoid Scrutiny on a Stealth Trip to China
  By ANDREW JACOBS Published: May 5, 2010 BEIJING — Much as in the children’s book “Where’s Waldo?” the proof that North Korea’s leader, Kim Jong-il, is indeed traveling through China can be obvious, if somewhat headache-inducing to arrive at. The quest usually begins with a rumor, followed shortly by the unmistakable sight of the Dear Leader’s bulletproof train edging across the Yalu River bridge, the curtains safely drawn as its cars creep into the Chinese city of Dandong from North Korea. [Media]
• Kim Jong-il Shows Unusually High Profile in China
  North Korean leader Kim Jong-il is being unprecedentedly visible during his current trip to his country's main ally China. Kim chose the Furama Hotel in downtown Dalian for his first stopover. The city's leading hotel, it has housed foreign leaders, politicians, entrepreneurs, business leaders, and academics whenever international events, including summer Davos Forum, are held. Exposure is hard to avoid there because the hotel is on a main street in the commercial district. Room reservations for ordinary guests have been temporarily suspended, but unexpectedly there was no restriction to the entry and exit of visitors to the lobby. Experts had predicted Kim would stay would stay at a hotel in Bangchuidao, a favorite resort area among China's top leaders, which is about 5 km from the downtown area. Kim also publicly ventured out of the hotel three times, taking with him a convoy of about 40 vehicles for protocol and security reasons. During his earlier visits, he tried to avoid exposure as much as possible by reducing the number of vehicles. His attendance at a welcome dinner hosted by the Chinese government at its guest house in Bangchuidao on Monday evening and his visit to the Dalian Economic and Technological Development Zone and port facilities the following day were in effect public events.
• China Rolls Out Red Carpet for Kim Jong-il
  When North Korean leader Kim Jong-il arrives in Beijing on Tuesday or Wednesday, he will be treated to a state banquet commemorating the 60th anniversary of China's participation in the Korean War attended by the host country's most illustrious officials. Members of the Communist Party's politburo line up to greet the visiting leader of North Korea in a tradition that dates back to the days of former North Korean leader Kim Il-sung. If a summit is difficult to schedule, top Chinese officials at least attend an official banquet in honor of the North Korean leader. One North Korean source in Beijing said, "Since he came to power, Kim Jong-il has visited China four times, and each time at least five top officials or even the entire Chinese leadership have met him."
• Hoping for China to Pressure N.Korea Is Futile
  Park Doo-shik China seems to have decided to put up with South Korea's complaints and accusations for the time being. Otherwise, how to explain the lavish diplomatic discourtesy (sic) Beijing has heaped on North Korean leader Kim Jong-il? Chinese President Hu Jintao, meeting with President Lee Myung-bak in Shanghai on Saturday, expressed sympathy for sailors who died in the sinking of the Navy corvette Cheonan, just as it was becoming clearer that North Korea was probably involved in the shipwreck, but dropped no hint that Kim would arrive there only three days later. During Lee's visit to China in May 2008, Beijing proposed to upgrade its relationship with the South to a "strategic cooperation partnership." It explained that the proposal would put South Korea above Japan in its foreign policy priorities and give it the same priority as India and Russia. Cheong Wa Dae accepted the explanation and briefed the media. Yet the Chinese head of state mentioned nothing whatsoever about Kim’s imminent visit when he met Lee. How is Seoul to interpret that? Cheong Wa Dae and the Foreign Ministry are furious, but there is nothing they can do. China's policy for the Korean Peninsula policy has changed little. Only South Korea prematurely assumed that its strategic value in China's eyes exceeds the North’s on account of increasing trade volume, tourism and other exchanges.
• What Does China Want from Kim Jong-il?
  Defectors who were senior officials in the North say it is a myth that China is unconditionally on North Korea's side. They suggest that China may have summoned Kim not in order to side with him but to get an explanation of the sinking of South Korean Navy corvette Cheonan. One North Korean defector said, "China may want hear Kim's explanation before making its final decision about how to deal with the Cheonan issue." [Bizarre] [Defector reports]
• N.Korea in First Expo as Kim Jong-il Visits China
  Reclusive North Korea is one of several nations participating in a World Expo for the first time. Its participation comes as the country faces a grave economic crisis, and its leader is on a rare visit to China. Tourists walk past North Korea Pavilion at the World Expo site in Shanghai, China on May 2, 2010. /AP North Korea's pavilion is nestled in a corner of the Asia section at the World Expo, next to Iran. The design is modest. The outside of the rectangular building features a large mural of blue skies and a photo of Pyongyang's Chollima Statue, a horse that is said to symbolize the heroic and unconquerable spirit of the North Korean people. Inside, there are a replica of Pyongyang's Juche Statue, a small waterway that represents the North's Taedong River, a traditional bridge and large fountain with colored lights. On top of the fountain, a group of white marble statues of naked boys encircle two others. One boy holds the other up in the air as he lifts a dove into the sky. In one corner, there is a small cave that contains a reproduction of a mural from the North's Koguryo Tombs, a World Heritage site. Along a wall, beneath the phrase "Paradise for the People," a row of television sets plays videos depicting everyday life in North Korea. Some of the videos show North Koreans leisurely bowling, playing golf and ice skating. Although some of the footage appears to be recent, other shots seem to be decades old.
• S.Korea-China relationship on the brink
  The Lee Myung-bak administration’s protests against Kim Jong-il’s visit to China may be a sign of shifting diplomatic relations » Unification Minister Hyun In-taek, right, and Chinese Ambassador to South Korea Zhang Xinsen pause for an awkward moment while seated at the reception room in the Central Government Complex, May 4. A number of South Korean officials are issuing a series of “public protests” to the Chinese government in response to North Korean leader Kim Jong-il’s visit. Measures Taken against the Chinese Ambassador to South Korea and Diplomatic Propriety A number of observers are saying that First Vice Foreign Minister Shin Kak-soo’s decision to summon Chinese Ambassador to South Korea Zhang Xinsen on Monday to protest China’s acceptance of Kim’s visit essentially constitutes diplomatic interference. Diplomatic customs limit the ability of officials to summon an ambassador to issue strong protests over an issue pertaining to its own nation. Several factors appear to be at work in this exceptional “clash diplomacy” of the South Korean government. To begin, it appears the Lee Myung-bak administration, while firmly believing the warship Cheonan was sunk by the North Koreans, has taken China’s acceptance of the visit as a move to excuse North Korea’s role in the sinking. Many point out, however, that the Lee administration’s protests to the Chinese government without an official announcement that the sinking was committed by North Korea is illogical. Moreover, the North Korea-China relationship is a “third-party relationship” in which the South Korean government cannot interfere. [SK China]
• Kim Jong-il’s visit to China as a stepping stone to six-party talks
  North Korean leader Kim Jong-il has begun his visit to China. The several rumors of upcoming visits to China from the beginning of the year have in fact become a reality, but keen interest has arisen as a result of the increasing tensions due to the sinking of the Cheonan and the deterioration of inter-Korean relations.
• N. Korean leader en route to Beijing for summit
  By Kim Young-jin Staff reporter North Korean leader Kim Jong-il appeared set to begin making his way to Beijing, Tuesday, where he is expected to meet with Chinese President Hu Jintao. Sources in Dalian, where Kim spent the night, told Yonhap News Agency that his reservation at the Furama hotel there was made for 7 p.m. and that his armored train was on standby at the railway station. Earlier in the day, Kim and his entourage visited a development project area near Dalian to inspect a port under construction, and then returned to the hotel, the sources said.
• Seoul disappointed by NK leader’ China trip
  By Kim Young-jin Staff reporter Seoul has expressed to Beijing its disappointment over North Korean leader Kim Jong-il's visit to China, a foreign ministry official here said Tuesday. Vice Foreign Minister Shin Kak-soo outlined the stance during a meeting on Monday with Chinese Ambassador to Seoul Zhang Xinsen, the unidentified official told reporters. ``The government expressed its disappointment and asked Beijing to clarify a few questions it had,'' the official said.
• Kim Jong-il Stops Off in Chinese Boomtown
  North Korean leader Kim Jong-il is seen outside the Fulihua Hotel in Dalian, China on Monday. /Kyodo News-Yonhap North Korean leader Kim Jong-il arrived in the northeastern port city of Dalian on Monday morning as part of a China trip that began in the small hours of the morning. Kim and entourage were seen arriving at Fulihua Hotel in downtown Dalian in about 20 guest vehicles. China reportedly provided Kim with Mercedes-Benz's premium brand Maybach for the 300-km trip to Dalian from Dandong. The Fulihua Hotel where Kim stayed is one of the most luxurious in Dalian and North Korea reserved an entire new wing until 7 p.m for security reasons. Kim reportedly stayed its presidential suite. Sources said Kim rested in the morning and went outside three times to look around the port area of Dalian around 2:30 p.m, take part in welcoming ceremony by local Chinese officials at 5:30 p.m. and enjoy the scenery at night.
• North Korea's Kim Jong Il arrives in China, amid internal, external tensions
  By Lauren Keane Tuesday, May 4, 2010 BEIJING -- A special train carrying Kim Jong Il arrived in China early Monday for a much-anticipated visit by the North Korean leader. Kim is expected to appeal to China for economic aid and, in return, perhaps agree to return to the stalled six-party nuclear talks
• China’s Naval Expansion in the Indian Ocean and India-China Rivalry
  Harsh V. Pant After dramatically increasing its military expenditure over the last several years, in 2010 China has raised it by only 7.5 percent, marking the first time in nearly 21 years that the rate of increase has fallen below double digits.1 While there are a number of factors behind this, the Chinese government has used this to announce its pacific intent, underlining that it has always tried to limit military spending and set defence spending at a reasonable level. China’s foreign policy thinkers and political establishment have long sought to convince the world that Beijing’s rise is meant to be a peaceful one, that China has no expansionist intentions, that it will be a different kind of great power. Of course, the very nature of power makes this largely a charade, but more surprising is that western liberals have tended to take these assertions at face value. There is an entire industry in the West that would have us believe that China is actually a different kind of a great power and that if the west could simply give China a stake in the established order, Beijing’s rise would not create any complications [China rising] [China India]
• Kim Jong-il 'Arrives in China'
  North Korean leader Kim Jong-il has apparently embarked on a long-expected China visit. Chinese sources on Monday said the reclusive dictator arrived in the border city of Dandong aboard one of his armored trains at 5.15 a.m. and left for Beijing about a half hour later. South Korean government officials expected the visit. "I can't go into further details, because it's an intelligence matter," one said Sunday, "but we've detected signs of his imminent visit based on watching developments in Dandong and Beijing."
• North Korean leader may be in China
  DANDONG, China, May 3 - North Korean leader Kim Jong-il appears to have entered China, his destitute state’s biggest benefactor, for a rare trip abroad that could defuse tensions on the troubled peninsula, reports said on Monday. China has the most influence in curbing the North’s military grandstanding and the reclusive Mr Kim’s previous trips to his neighbour have led to steps that have reduced security concerns for the economically vibrant region and between the rival Koreas. [Media]
• Shanghai Is Trying to Untangle the Mangled English of Chinglish
  By Andrew Jacobs Published: May 2, 2010 SHANGHAI — For English speakers with subpar Chinese skills, daily life in China offers a confounding array of choices. At banks, there are machines for “cash withdrawing” and “cash recycling.” The menus of local restaurants might present such delectables as “fried enema,” “monolithic tree mushroom stem squid” and a mysterious thirst-quencher known as “The Jew’s Ear Juice.”
• North Korea's Kim seeking lifeline in China
  By Royston Chan Reuters Monday, May 3, 2010; 3:32 AM DALIAN, China (Reuters) - Reclusive North Korean leader Kim Jong-il reportedly went to China seeking aid and protection from his only major ally after bungled policies at home and military grandstanding that has exasperated the region. China has propped up the North's leaders for decades. Analysts say even though Beijing is increasingly fed up with its provocative neighbor, it is willing to bankroll Kim to prevent chaos on its border. Kim, aware of Beijing's predicament, will demand sweeteners to rein in his military and return to international nuclear disarmament talks hosted by Beijing, analysts said. He crossed into China in the predawn hours in his armored train and went to the thriving port city of Dalian, Yonhap news agency quoted South Korean officials as saying. [Media]
• World's fair in Shanghai provides China with another showcase opportunity
  Expo 2010: Shanghai hosts world's fair A global showcase of architecture, science and technology runs May 1 through Oct. 31 in China's financial capital. Tens of millions of people are expected to visit the exposition in Shanghai. By Andrew Higgins Saturday, May 1, 2010 SHANGHAI -- With a frenzy of fireworks over a metropolis that once symbolized subjugation by the West, China on Friday launched its first world's fair, a jamboree of 189 nations that Communist Party leaders hope will showcase their country as a potent but peaceful world power. As the Chinese character for peace flashed on a giant screen and Beethoven's "Ode to Joy" boomed from loudspeakers, a flotilla of boats carried the flags of the participating nations down the Huangpu River, a waterway that in the colonial era brought foreign invaders and traders, Western ways and great wealth to China's most cosmopolitan city. After eight years of preparation, more than $50 billion in state funds and the biggest security operation in China since the 2008 Olympic Games in Beijing, President Hu Jintao declared Expo 2010 Shanghai open at a ceremony held in a riverfront hall shaped like a flying saucer. The ceremony, a mix of Sino-Western schmaltz and stiff Chinese ritual, featured the Chinese national anthem, a song by Hong Kong movie star Jackie Chan, a rendition of Puccini's "Nessun Dorma" by Italian tenor Andrea Bocelli and mass dance routines. Police closed streets in wide swaths of the city ahead of the event, which was attended by numerous foreign dignitaries, including North Korea's No. 2 and French President Nicolas Sarkozy. The United States did not send a high-level representative. Tens of thousands of Shanghai residents watched the fireworks show Friday evening. "In the past, foreigners looked down on Chinese," said Jiang Xian, a retired petrochemical worker. "I am now very proud and excited." [China confrontation] [China rising]
• Rights groups condemn Taiwan's executions
  2010/05/01 15:29:21 Taipei, May 1 (CNA) Human rights groups on Saturday condemned the killing of four inmates on death row by Taiwan's government, saying that the country's first executions since December 2005 put Taiwan's human rights record at risk. Amnesty International condemned Taiwanese authorities while the Taiwanese Alliance to End the Death Penalty (TAEDP) expressed its "shock and anger" upon learning that four prisoners were put to death Friday
  According to most public opinion polls, over 70 percent of Taiwan people are in favor of the death penalty [Human rights]
• Kim Yong Nam Meets Chinese President
  Pyongyang, April 30 (KCNA) -- Kim Yong Nam, president of the Presidium of the DPRK Supreme People's Assembly, who is heading the delegation of the DPRK on a visit to China to participate in the opening ceremony of the 2010 Shanghai World Expo, met and had a talk with Hu Jintao, general-secretary of the Central Committee of the Communist Party of China and president of the People's Republic of China, in Shanghai on Friday. Hu Jintao said that the DPRK delegation's participation in the above-said expo indicates that the party and the government of the DPRK attach importance to the Sino-DPRK friendship, adding that the bilateral relations have made steady good development thanks to the concerted efforts of the two sides in recent years.
• Indonesians Seek Words to Attract China’s Favor
  By Edward Wong Published: May 1, 2010 LAMONGAN, Indonesia — When the regent of this coastal rice-growing region on the island of Java first toured China as part of an official delegation, his eyes went wide. Here was the future, he thought: skyscrapers and humming factories and grand highways. The New York Times Officials in Lamongan want to expand economic ties with China. Now, the regent, Masfuk, has begun trying to move his Indonesian region toward that future: he has mandated that all the schools in Lamongan, population 1.5 million, teach Mandarin Chinese to prepare the youth for doing business with China. In classrooms here, girls in white head scarves and boys in button-down shirts are haltingly reciting from Chinese textbooks and scrawling characters on blackboards. The local government has held Mandarin speech contests the past two years. “It’s like watching kung-fu movies,” Mr. Masfuk said of the wonder of hearing students speaking Mandarin during the contests. Like many Indonesians, he uses just one name. The policy goes against decades of anti-Chinese hostility in Indonesia, the world’s most populous Muslim country. But things are changing, and the Chinese government is now sending hundreds of teachers to Indonesia, including one who has taught in Lamongan. As China’s economic power grows, the study of Mandarin is surging around the world. Its rise in Indonesia may be one of the most telling examples of how China’s influence is overflowing even the steepest of barriers. [China rising]
• China Gains Influence in Korean Affairs as North and South Warily Seek Its Help
  Pool photo, via Associated Press The mother of a sailor who died when a South Korean ship sank last month mourned at a memorial service. North Korea is suspected of sinking the ship. By CHOE SANG-HUN Published: April 28, 2010 SEOUL, South Korea — On Friday, President Lee Myung-bak will travel to China under growing pressure at home to make the case for crucial Chinese support for tough international sanctions against North Korea if, as is widely expected, the North is found responsible for the sinking of a South Korean ship. But he is unlikely to win that support, experts say, a reflection of China’s growing role in the Korean Peninsula. Since taking office in 2008, Mr. Lee has wound down his predecessors’ “sunshine policy” of aid and engagement with the North, heightening Chinese fears of instability and driving the North into China’s economic embrace. Ultimately, that could give Beijing greater leverage in determining the fate of the northern half of the Korean Peninsula, a situation that many South Koreans would consider to be a nightmare.
  “Despite their public rhetoric about the closeness of their ties, officials in both China and North Korea each tell even American officials how much they dislike the other,” said Mr. Straub, the North Korea specialist at Stanford. “North Korean officials have on numerous occasions suggested to American officials that it would be in the interests of our two countries to have a strategic relationship — to counter China.” [SK NK policy] [China NK]
• At Expo 2010 Shanghai, China thinks big
  Gallery Expo 2010: Shanghai hosts world's fair A global showcase of architecture, science and technology opens May 1 in China's financial capital. Tens of millions of people are expected to visit the international exposition in Shanghai, which runs through Oct. 31.

• Lessons for the US and China from past US-Japan conflict
  Jenny Corbett (Australia Japan Research Centre, ANU; and Takatoshi Ito (University of Tokyo)* Although the rhetoric has recently softened, Chinese leaders have repeatedly said that they would not allow a renminbi (RMB) appreciat ion whi le foreign countries, notably the United States, are demanding action. They have called this demand ’protectionist’ and have made clear that it is the demand, as much as the economics of appreciation, to which they object. However another impediment is that Chinese authorities believe that a prime cause of Japan’s 20- year stagnation was caving in to US demands on yen appreciation. [Currency]
• China Opens Vast Underground Nuke Plant to Public
  China has opened the world's largest underground nuclear weapons plant to the public. According to the official China Daily on Tuesday, China opened the plant dubbed the "816 project" in a mountain in Chongqing's Fuling district to tourists recently. It lies in the world's largest man-made cave, which is 20 km deep. A 79.6 m-high nine-story building was built in the cave with a total floor area of some 13,000 sq. m. A reactor in the plant produced weapons-grade plutonium 239. The entire facility consists of 18 caves, 130 roads, tunnels, mine shafts, and weapons and food storage. It is designed to withstand a magnitude 8 earthquake or a nuclear attack. Construction began with approval by then premier Zhou Enlai in 1967. A total of about 60,000 workers were mobilized during the eight-year construction, which cost 740 million yuan. In this screen-grab from the China Daily website, visitors look at an underground nuclear plant in Chongqing, China on Tuesday. /Courtesy of China Daily China decided to build this nuclear facility when relations with the Soviet Union turned sour in the 1960s, but it shut down amid changes in the international situation in 1984. In 2002, Beijing declassified the facility and now the Chongqing city government has opened it to the public.
• Birds Viewing Festival opens at China-DPRK border city
  (Xinhua) Updated: 2010-04-29 15:39 A large flock of birds hover over the birds-viewing garden on the wetland at the estuary of the Yalu River, bordering on China and the Democratic People's Republic of Korea (DPRK), as the 5th International Birds Viewing Festival on the Estuary Wetland of Yalu River opens and attracts over 1,000 ornithologic enthusiasts from both home and abroad to take part in, at this National Nature Reserve in Dandong City, Northeast China's Liaoning Province, April 28, 2010. This National Nature Reserve on the Estuary Wetland of Yalu River in Dandong is the country's best-preserved littoral wetland reserve that accommodates more than 1 million birds
• Taipei expresses 'concern' over Tokyo’s Diaoyutai plan
  Publication Date:04/28/2010 Source: Taiwan Today By Chiayi Ho Taipei has advised Tokyo of its concerns over a Japanese plan to explore the seabed surrounding the disputed Diaoyutai Archipelago for mineral resources, according to the Ministry of Foreign Affairs. “Our representative office in Tokyo has stated the ROC government’s position on this matter to the Japanese government,” said Chen Tyau-her, secretary-general of MOFA’s East Asian Relations Commission April 27. Chen’s remarks came after Japan’s Kyodo News Agency reported April 26 that Japanese Prime Minister Yukio Hatoyama’s Cabinet was expected to approve a new national strategy on securing rare metals needed in high-tech products as early as June. Under the plan, a 340,000-square-kilometer swath of the East China Sea and Pacific Ocean is to be explored. According to Chen, Taipei has requested further details of the strategy and will closely monitor the situation to ensure the nation’s rights are not violated. “The ROC has been consistent in its sovereignty over the Diaoyutais and this has never changed,” he said. “We hope that Taipei and Tokyo can set aside disputes over sovereignty and jointly explore maritime resources in the region,” Chen said. “But limited progress has been made in this area as neither side will give ground in its sovereignty claim.” Known in Japan as the Senkaku Islands, the Diayoutais are a tiny island group comprising Diaoyutai Island, Huangwei Islet and Chiwei Islet. The archipelago lies less than 100 kilometers from Taiwan in the East China Sea, and is claimed by the ROC, Japan and mainland China. [Japan-China-Taiwan]
• Busan Auto Show Pales Beside Thriving Beijing Exhibition
  The Busan International Motor Show opens on Thursday but it looks like it will be reduced to a mostly local event. Only two foreign carmakers will participate in the show and only one car is to be unveiled for the first time in the world there. It also appears to fail to serve the basic purpose of an auto show as a place where industry insiders can catch up on new trends and share information. Its lack of appeal is all the more conspicuous since it opens only a week after the 2010 Beijing International Automotive Exhibition, which began on Friday. [China competition] [Auto]
• China's Investment Viewed as Boon for N.Korean Regime
  A U.S. expert on North Korea said that China's investment in the economic zone of Rajin-Sonbong in the North may provide the leader of the reclusive country a chance to sustain the current leadership. Scott Snyder, a senior associate of the Asia Foundation, claimed that Beijing's decision to invest in the North is likely to be aimed more at helping Kim Jong-il maintain power by financing new sources for hard cash at a time when the nation is going through economic difficulties. Meanwhile, authorities in China's Jilin province say they have reached an agreement to lease the Rajin-Sonbong port for a decade. [China NK] [FDI] [SEZ]
• A Little Danish Mermaid Comes Up for Air in China
  Jens Norgaard Larsen/European Pressphoto Agency A replica of Denmark’s best-known national emblem was placed at the Tivoli Gardens in Copenhagen earlier this month. By JOHN TAGLIABUE Published: April 27, 2010 COPENHAGEN — Some call it mermaid diplomacy; others, tongue in cheek, speak darkly of illicit trafficking in young women. The mermaid, perched on her rock in a pond of salt water from Copenhagen harbor, will be on view at the Shanghai World Expo. The event in question was last month’s transport of Denmark’s best-known national emblem, the four-foot-tall bronze statue of Hans Christian Andersen’s Little Mermaid, from the rocky, quayside location it has occupied since 1913 to a site in Shanghai. In Shanghai, the mermaid, perched on her rock in a pond of salt water direct from Copenhagen harbor, will be the centerpiece of the Danish pavilion in Shanghai’s 2010 World Expo, which opens this Saturday.
• Why Trade Figures Do Not Prove China Is Rebalancing
  By Samuel Sherraden, New America Foundation April 27, 2010 | (Photo/Flickr-Robert Scoble) China’s trade surplus declined in the first quarter, and during March the country ran a deficit of $7.2 billion, its first monthly trade deficit since 2004. Contrary to some analyses, this is not proof that the economy has made significant progress toward rebalancing or a reason for the United States to back away from pushing China on yuan appreciation. The short-run decline in the trade balance was driven by seasonal effects, a slowdown in China’s export markets, and a surge in raw materials imports - none of which indicate that China is making a transition to an economy driven by greater consumer demand. On the contrary, a breakdown of trade figures indicates that although demand has returned, it is largely related to investment-led growth, not to consumer demand. [Demand] [China confrontation]
• Global brands face threat of rising China car quality
  Sat Apr 24, 2010 8:28am BST By Chang-Ran Kim and Kevin Krolicki BEIJING, April 24 (Reuters) - When Ric Hull first looked at launching Great Wall Motor (2333.HK) pickup trucks in Australia last year, he considered rebranding them, worried their obvious Chinese origins would raise questions about their quality. Ateco Group, Hull's auto importing and dealership company, decided against marketing the low cost models under "GWM" label, instead embracing the trucks' made in China credentials, and sales are booming. "We initially thought: do we resolve the brand question, do we call them GWM? But then we thought that people would know anyway, and that seems to be working very well," Hull said. "The thing that's fascinated us about China is how rapidly they are progressing. The cars, just a few years ago, would not have been saleable in markets like ours. But today they are," Hull told Reuters at the Beijing Auto Show this week. Global auto executives gathered at the biannual event are also recognising the stiffer competition they face as Chinese rivals step up their quality standards. Chinese carmakers, some with the help of foreign partners, have rapidly improved vehicle quality as they prepare to take on established international brands such as Volkswagen (VOWG_p.DE), General Motors [GM.UL] and Hyundai Motor (005380.KS) in the higher segments of the market that they dominate in China. With such improved quality and cut-rate prices, established automakers could one day be competing against China's most successful brands not only in China but on the global stage, executive said. "I have no doubt about it," Nissan Motor (7201.T) CEO Carlos Ghosn told a small group of reporters at the Beijing auto show. "This may take time. Obviously today, when you take a look at a show like this, there is more improvement to be made. "Some Chinese brands are going to...gain credibility. They're going to be acquiring know-how, like the Volvo acquisition," he said, referring to Geely Automobile's (0175.HK) deal last month to buy Volvo Cars from Ford Motor (F.N). CLIMBING THE LADDER Mitsubishi Motors (7211.T) President Osamu Masuko agreed, saying he was impressed when he recently test-drove BYD's (1211.HK) F6 sedan. "For a company that's only been in this business for a few years, it's remarkable," he said. "And they're going to keep improving with every model change. One day, Chinese automakers could be a formidable competitor." [Quality] [Image] [Auto]
• A long drive to global dominance for China carmakers
  Fri Apr 23, 2010 3:42am BST * No obvious overseas M&A targets - industry watchers Regulatory News * China may take lead in renewable energy vehicles * China not expected to challenge global players for decades By Alison Leung HONG KONG, April 23 (Reuters) - Chinese car makers may have the world's largest market to play in but face many hurdles including a shortage of original models, an overcrowded industry and a lack of overseas acquisition targets before they can challenge for global leadership. None of this has dimmed the ambition of the country's auto entrepreneurs, however. BYD Co (1211.HK) Chairman Wang Chuanfu, who has become China's richest man after U.S. billionaire investor Warren Buffett invested in his company, has said he wants to build BYD into the world's biggest car company by 2025. To be sure, the swift growth in car sales in China in the past couple of years has been nothing short of breathtaking. Sales rose almost 50 percent last year to 13.7 million vehicles and are up 76 percent in the first three months of 2010. But translating that strong growth at home and taking on the likes of Toyota Motor Co (7203.T), General Motors [GM.UL] and Ford Motor Co (F.N) on the global stage is mission that could take China's top automakers decades. [Image] [Auto]
• Timeline: Chinese automakers chase global profile
  Mon Mar 29, 2010 1:30pm BST Following is a timeline tracing proposed, failed or ongoing global deals by Chinese automakers since last year: March 18, 2009 - Beijing Automotive Industry Holding Corp (BAIC) said to want U.S. auto parts maker Delphi Corp's non-core assets. June 3 - Little-known heavy machinery maker Sichuan Tengzhong Heavy Industrial Machinery unveils tentative deal to buy GM's Hummer. June 11 - BAIC interested in Ford's Volvo car unit. July 6 - Italian automaker Fiat (FIA.MI) agrees to 50:50 joint venture with Guangzhou Automobile Industry Group Co Ltd GAIGPA.UL to produce car engines in China. July 23 - GM GM.UL rejects BAIC bid for its Opel brand. Aug 1 - BAIC will pay up to $117 million for 40 percent stake in Fujian Motor Industry Group's 50:50 commercial vehicle venture with Daimler in southeast China. Sept 8 - SAIC Motor (600104.SS), a GM China partner, may take passive stake in Saab by teaming up with luxury sports car maker Koenigsegg. Sept 9 - Geely says its parent wants to bid for Volvo, with privately-held Geely Holding Group seeking full ownership. Sept 9 - BAIC agrees to take minority stake in Koenigsegg as part of the Swedish firm's purchase of Saab. Sept 15 - Cash-strapped South Korean automaker Ssangyong Motor (003620.KS) proposes capital writedown that would slash the stake of SAIC, its majority Chinese shareholder. Sept 16 - Geely shares suspended pending $250 million bond and warrant issue. Geely says not related to Volvo. Geely announces on September 23 that Goldman Sachs will invest $334 million. Sept 17 - Geely approaches Magna International (MGa.TO) about possible stake in Opel; Magna refrains for now from any such partnership. Oct 9 - GM signs deal to sell Hummer to an investment partnership headed by China's Tengzhong. Oct 12 - Tengzhong seeks regulatory approval for Hummer buy, aims to close purchase by early 2010. Oct 28 - Ford chooses Geely as preferred bidder for Volvo. Nov 30 - BAIC says may still be interested in buying Saab. Dec 4 - GM and SAIC to set up 50:50 JV to make small cars and commercial vehicles in India. GM also to sell 1 percent stake in existing China JV with SAIC to its partner, giving SAIC control. December 14 - BAIC acquires some Saab assets, including intellectual property for the 9-5 and 9-3 model platforms and some production equipment. December 23 - BAIC says it will invest 33 billion yuan ($4.83 billion) in vehicle development and production over the next three years. January 11, 2010 - China overtakes U.S. as the world's largest auto market having sold a total of 10.3 million passenger cars in 2009, up 52.9 percent from a year earlier. February 24 - Beijing rejects Tengzhong's bid to buy GM's Hummer brand. March 28 - Zhejiang Geely Holding Group, buys Ford Motor's (F.N) Volvo car unit for $1.8 billion, the country's biggest overseas auto purchase. (Writing by Carl Bagh, Bangalore Editorial Reference Unit; Editing by David Cutler) [Auto]
• China Must Understand the Effects of Cheonan Sinking
  President Lee Myung-bak will meet with his Chinese counterpart Hu Jintao in Shanghai on Friday. Last Saturday, a day before the summit was announced, the military pulled the bow of the sunken Navy corvette Cheonan out of the West Sea and brought it to the Second Navy Fleet Command in Pyeongtaek, Gyeonggi Province. The stern of the vessel had been recovered on April 15. The investigation team said on Sunday that based on a visual scan of the wreckage, a "non-contact external explosion," rather than a direct hit, was the most likely cause behind the mysterious sinking. The team added that the explosion could have resulted from either a torpedo or a mine. The West Sea is traversed by South Korean, North Korean and Chinese ships and the waters where the disaster occurred are frequented only by ships based either in the North or South. That means if the Cheonan was sunk by a torpedo or a mine, the identity of the culprit is clear as day. All the investigation team has to do in that case is to find evidence to prove the suspicion based on scientific analysis that the world can accept without question. [Cheonan]
• China’s Overseas Dam Builders: from Rogue Players to Responsible Actors?
  Peter Bosshard In the early years of the new century, Chinese dam builders and financiers appeared on the global hydropower market with a bang. China Exim Bank and companies such as Sinohydro, China Gezhouba Group and China Southern Power Grid started to take on large, destructive projects in countries like Burma and Sudan, which had previously been shunned by the international community. Their emergence threatened to roll back progress regarding human rights and the environment which civil society had achieved over many years. However, new evidence suggests that Chinese dam builders and financiers are trying to become good corporate citizens rather than rogue players on the global market. Here is a progress report from the perspective of an international civil society advocate. In December 2003, China Exim Bank approved $519 million in loans for the Merowe Dam in Sudan. The Chinese government’s export credit agency thus helped kick off a project which would displace more than 50,000 people from the fertile Nile Valley into desert locations, and for which the Sudanese government had failed to attract funders for many years. China Exim Bank also provided support to projects in Burma such as the Yeywa and Lower Paunglaung dams, which no other funder was prepared to touch. “The Bank specializes in financing projects that no other financial institutions would fund”, International Rivers and Friends of the Earth warned in July 2004.
    Once they acquired the technology to build large hydropower projects, Chinese dam companies wasted no time rolling up the international market. Low costs, access to cheap loans and a big portfolio of domestic projects make them attractive partners for clients around the world. We are aware of at least 216 dam projects in 49 countries which have some form of Chinese involvement – and counting. Chinese companies are currently building 19 of the world’s 24 largest hydropower stations. The President of Sinohydro recently estimated that his company controls half the global hydropower market. The primary interest of Chinese dam builders in their new “going out” strategy is to win international contracts, which typically have much bigger profit margins than projects in China. Companies such as China Southern Power Grid and the Yunnan Joint Power Development Company are also building projects in Burma and Laos in order to supply electricity to the Chinese home market. The rapid emergence of China’s overseas dam builders alarmed environmental organizations and the Western dam builders and financiers (sic), which had controlled the global market for decades.   [China rising] [Double standards]  [Green][China confrontation] [Camouflage] [NGO]
• Eager to Settle Into China’s Embrace
  By ADAM NOSSITER Published: April 24, 2010 NIAMEY, Niger — For China, the transition seems smooth. China's influence and investment is visible in Niamey, the capital. Just a few months ago, China was widely derided here as the financial backbone propping up an autocratic president, Mamadou Tandja, giving him the confidence to ignore international condemnation as he chopped away at Niger’s democratic institutions. But now that Mr. Tandja has been overthrown, China appears to be settling into a new role: business partner to the good-government-preaching military officers who ousted Mr. Tandja under the banner of restoring democracy. [China confrontation]
• From China's mouth to Texans' ears: Outreach includes small station in Galveston
  By John Pomfret Washington Post Staff Writer Sunday, April 25, 2010 GALVESTON, TEX. -- Cruise southeast out of Houston, past the NASA exits and toward the Gulf of Mexico, and you pick up something a little incongruous on the radio, amid country crooners, Rush Limbaugh, hip-hop and all the freewheeling clamor of the American airwaves. This Story From China's mouth to Texans' ears The other superpower: China's rise and the challenges it faces Broadcasting beyond Beijing "China Radio International," a voice intones. "This is Beyond Beijing." Way, way beyond Beijing. Sandwiched between a Spanish Christian network and a local sports station, broadcasting at 1540 on your AM dial, is KGBC of Galveston, wholly American-owned and -operated, but with content provided exclusively by a mammoth, state-owned broadcaster from the People's Republic of China. Call it KPRC. Or as the locals quip: Keep Galveston Broadcasting Chinese. The little Texas station may be modest, but it is part of a multibillion-dollar effort by the Chinese government to expand its influence around the world. As China rises as a global force, its leaders think that their country is routinely mischaracterized and misunderstood and that China needs to spread its point of view on everything from economics to art to counter the influence of the West. [China rising] [Media] [Softpower]
• Rajin-Sonbong: A Strategic Choice for China in Its Relations with Pyongyang
  By Scott Snyder April 23rd, 2010 This article was originally written for the Jamestown Foundation’s China Brief Series: http://www.jamestown.org/programs/chinabrief/single/?tx_ttnews[tt_news]=36215&cHash=b8c79b916c Scott Snyder, Director of the Center for U.S.-Korea Policy at the Asia Foundation, writes, “How the PRC central government handles Rajin-Sonbong may provide additional needed leverage to drive a financially hurting regime back to the negotiating table, or it may provide the North Koreans with a lifeline that sustains the leadership and provides it with the capacity to avoid necessary reforms. Given that many Chinese private firms recognize the risks of investing in North Korea under the current regime, a central government decision to invest in the Rajin-Sonbong is likely to be aimed more at perpetuating the status quo than at achieving the regime transformation necessary to promote North Korea’s economic integration into the region. [regime change] [China NK] [SEZ]
• Think tank calls for Taiwan-ASEAN FTAs
  Publication Date:04/23/2010 Source: Economic Daily News Thailand and Vietnam should be the first countries Taiwan signs free trade agreements with after concluding the cross-strait economic cooperative framework agreement, according to Chung-Hua Institution for Economic Research. [FTA]
• China 1972: Nicholas Platt's 'China Boys'
  NEW YORK, April 13, 2010 - Ambassador Nicholas Platt guided a full house at Asia Society Headquarters in New York on a romantic adventure through readings and home movies into China's past. From President Nixon's iconic handshake with Zhou Enlai in 1972, through bicycle diplomacy in Beijing, to Deng Xiaoping's defining moment, Platt, President Emeritus of Asia Society, painted a vivid portrait of past US-China relations and its promising future. [China card]
• Three Growth Megatrends in China
  Chinese consumers are spending more, smaller cities are drawing more workers, and local factories are upgrading. Multinationals are adapting By Shaun Rein As fears of a double-dip recession fade, companies are looking once more to invest in potential growth areas. Foreign direct investment into China and emerging markets such as Brazil and India is on the rise again. FDI has climbed for seven straight quarters since August 2009, rising nearly 5% more in January and February than it did in those months during 2009, according to China's Ministry of Commerce. However, executives need to realize that major changes took place in China during the financial crisis. They should rid themselves of commonly held misconceptions about China's economy, then reconsider how the middle kingdom should fit into their business plans. China is no longer just the world's workshop. Driven by rising incomes, for instance, China bought more from the rest of the world in March than the rest of the world bought from China, with a trading deficit of $7.24 billion. The country has become the largest auto market in the world, with over 13.6 million vehicles sold in 2009, vs. just over 10 million in the U.S. It is also now the second-largest market for luxury products, with Chinese consumers buying nearly $7.5 billion of them annually. [Domestic demand]
• China Sees First Trade Deficit in Years
  By KEITH BRADSHER Published: April 10, 2010 HONG KONG — China announced on Saturday that it had a trade deficit of $7.24 billion last month, its first monthly trade deficit in nearly six years, as imports jumped along with a surging domestic economy while exports grew more modestly. Chinese New Year came late this year, falling on Feb. 14, which hurt factory production on the coast in early March. Many migrant workers travel home for two weeks for the celebration, and they were slow to return to their coastal plants in large numbers because there are now many jobs available in construction, retailing and other industries in the country’s interior. According to the official Xinhua news agency, China’s General Administration of Customs said the March reading was the first trade deficit since April 2004. China had a trade surplus of $7.6 billion in February and $14.2 billion in January. Top commerce ministry officials in Beijing had warned repeatedly over the last three weeks that China would run a trade deficit in March. They cited the risk of a monthly deficit as part of their broader campaign to prevent the government from letting the country’s currency, known as the renminbi or yuan, rise against the dollar and other foreign currencies. [Trade] [Currency]
• Shanghai Expo Seen as a Bigger Boon Than Beijing Olympics
  The 2010 Shanghai Expo which opens May 1 is expected to generate greater economic effects for China than the 2008 Beijing Olympic Games did, analysts predict. Korea's IBK Securities said Thursday that the Shanghai Expo's economic effects will be far bigger than those of the Beijing Olympics given the Expo's longer duration and other factors, potentially boosting China's GDP by as much as one percentage point.
• Taiwan free to sign FTAs: MAC head
  2010/04/08 21:24:57 Taipei, April 8 (CNA) Mainland Affairs Council (MAC) Chairwoman Lai Shin-yuan said Thursday that Taiwan is free to negotiate and sign free trade agreements (FTAs) with foreign countries without the need for China's approval. Lai made the remarks at a legislative session while answering questions raised by Chiu Yi-ying of the opposition Democratic Progressive Party (DPP) , who said China will still seek to block Taiwan's efforts to ink FTAs with its trade partners even if a planned cross- strait economic cooperation framework agreement (ECFA) is signed. Lai said Taiwan is seeking to forge the ECFA with China because it has been the country's largest export market for the past seven years and is the one that is most hotly sought-after by all other leading trading countries. In the meantime, Taiwan is redoubling its efforts to seek FTAs with [Straits] [FTA]
• China Offers High-Speed Rail to California
  By KEITH BRADSHER Published: April 7, 2010 The Chinese government has signed cooperation agreements with the State of California and General Electric to help build such lines. The agreements, both of which are preliminary, show China’s desire to become a big exporter and licensor of bullet trains traveling 215 miles an hour, an environmentally friendly technology in which China has raced past the United States in the last few years.
  China is offering not just to build a railroad in California but also to help finance its construction, and Chinese officials have already been shuttling between Beijing and Sacramento to make presentations, Mr. Crane said in a telephone interview.
  But while the ministry has brought costs down through enormous economies of scale, “buy American” pressures could make it hard for China to export the necessary equipment to the United States. [Railways [ODI] [China rising] [Decline] [Protectionism]
• Shanghai enterprises encouraged to invest in Taiwan
  2010/04/07 20:12:01 Taipei, April 7 (CNA) Taiwan promoted its investment environment to investors from China's biggest city Shanghai at an investment presentation held Wednesday in the capital city. Taiwan External Trade Development Council (TAITRA) Chairman Wang Chih-kang said geographically, Taiwan is in the center of the entire Asia-Pacific region. "It is shorter to travel from Taipei to Shanghai than from Beijing to Shanghai," [ODI]
• Researchers Trace Data Theft to China
  By JOHN MARKOFF and DAVID BARBOZA Published: April 5, 2010 In a report issued Monday night, the researchers, based at the Munk School of Global Affairs at the University of Toronto, provide a detailed account of how a spy operation it called the Shadow Network systematically hacked into personal computers in government offices on several continents.
  The attacks look like the work of a criminal gang based in Sichuan Province, but as with all cyberattacks, it is easy to mask the true origin, the researchers said. Given the sophistication of the intruders and the targets of the operation, the researchers said, it is possible that the Chinese government approved of the spying. [Cyberwar] [China confrontation] [MISCOM]
• China's Global Shopping Spree
  Is the World’s Future Resource Map Tilting East? By Michael T. Klare Think of it as a tale of two countries. When it comes to procuring the resources that make industrial societies run, China is now the shopaholic of planet Earth, while the United States is staying at home. Hard-hit by the global recession, the United States has experienced a marked decline in the consumption of oil and other key industrial materials. Not so China. With the recession’s crippling effects expected to linger in the U.S. for many years, analysts foresee a slow recovery when it comes to resource consumption. Not so China. [Rising China] [Energy] [Going out]
• China as a ‘Great Power’ and East Asian integration
  April 4th, 2010 Author: Satoshi Amako, Waseda University Many have argued that, in the context of China’s rapid growth upon the world stage, East Asian integration will naturally beget ‘regional hegemonism.’ But this understanding does not adequately capture the dynamic economic, social, and political reality in China or the region of East Asia. [China rising] [Softpower]
• Chinese Media Focus on Kim Jong-il
  China's state-run media have taken to reporting North Korean leader Kim Jong-il's moves ahead of his visit to China, which appears to be imminent. Diplomatic sources in Beijing speculate that the unprecedented attention is prompted by Kim's impending visit. Under an agreement with Pyongyang, China's media are banned from reporting his activities in China until he winds up his visit and returns to Pyongyang. On Saturday, the official Xinhua news agency reported Kim hosted a dinner party on Saturday for new Chinese ambassador Liu Hongcai, Chinese diplomats and the visiting Tianjin Women's Volleyball Team.  
• China blocks Bob Dylan gigs
  Bob Dylan's planned tour of east Asia called off after Chinese officials refuse him permission to play in Beijing and Shanghai    (189)Tweet this (202)Peter Walker guardian.co.uk, Sunday 4 April 2010 11.41 BST Article history Bob Dylan performing in 2002. Photograph: Gary Hershorn/Reuters Aged 68 and almost half a century past the zenith of his angry, protest-song youth, Bob Dylan must almost have forgotten what it was like to be deemed a threat to society. But it seems at least one place still sees him as a dangerous radical. Dylan's planned tour of east Asia later this month has been called off after Chinese officials refused permission for him to play in Beijing and Shanghai, his local promoters said. China's ministry of culture, which vets planned concerts by overseas artists, appeared wary of Dylan's past as an icon of the counterculture movement, said Jeffrey Wu, of the Taiwan-based promoters Brokers Brothers Herald. Dylan fans denied the chance to see their hero might also blame Björk, who caused consternation among Chinese officials two years ago by shouting pro-Tibet slogans at a concert in Shanghai, Wu told Hong Kong's South China Morning Post.  [China confrontation] [Separatism]
• Kim Jong-il’s China Visit Uncertain
  A special train that was thought to be carrying Kim Jong-il, which passed through the China-North Korea border early Saturday morning, was an ordinary cargo train and Kim may be still in North Korea, as a North Korean report said he attended a performance there, reports said, leaving his whereabouts uncertain. North Korean leader Kim Jong-il attended an art troupe performance, Yonhap news agency Saturday said, citing the country's state-run radio channel, the Korean Central Broadcasting Station (KCBS).
• President Ma equates ECFA with economic prosperity
  Publication Date:04/02/2010 Source: China Times ROC President Ma Ying-jeou said the proposed cross-strait economic cooperation framework agreement will help Taiwan expand commercial ties with other economies and further its reach in the global market. “Taiwan can only become more prosperous by opening its economy,” Ma said while meeting board members of the Junior Chamber International Taiwan at the Presidential Office. Citing the free trade agreement between Seoul and the Association of Southeast Asian Nations, which took effect Jan. 1, 2007, Ma said Taiwan has fallen far behind South Korea in terms of competitiveness. “If we cannot find a way to conclude FTAs with other economies, Taiwan will increasingly be seen as an also-ran when it comes to international trade,” Ma said. “As we are an export-oriented economy, Taiwan’s enterprises cannot afford to have their lifeblood cut off.” [FTA]
• Taiwan Pavilion readies for World Expo
  Publication Date:04/02/2010 Source: United Daily News The Taiwan Pavilion at the 2010 Shanghai World Expo is in the final stages of construction and will be inaugurated May 1, with an opening ceremony May 11. Hardware engineering and facilities checks were completed April 1, prior to an overall exhibition set up and media testing, leaving the pavilion ready to take part in the exposition’s overall trial run April 20. Yang Xiong, deputy mayor of Shanghai, said construction work on the Taiwan pavilion has been very efficient, running far ahead of schedule since it broke ground August 17, 2009.
  The Taiwan Pavilion is expected to receive 700,000 visitors during the six-month expo period. Each visitor will receive a special gift from the island [Straits]
• Geely Plans $900 Million Volvo Investment to Support Turnaround
  March 30, 2010, 12:01 PM EDT Zhejiang Geely Holding Group Co., the Chinese company buying Volvo Car Corp., plans to invest $900 million in the unprofitable Swedish automaker as it works on a turnaround. Geely will draw up a series of “development plans” to revive Volvo, founder Li Shufu told reporters in Beijing yesterday, without elaboration. The company has raised about $2.7 billion to fund the Volvo purchase and operations, half of which from overseas, he said. [Auto]
• Will Kim Jong-il's China Visit Produce Any Useful Results?
  Cheong Wa Dae has acknowledged signs that North Korean leader Kim Jong-il appears to be heading to China soon. Presidential spokeswoman Kim Eun-hye told reporters on Wednesday, "We believe there is a strong possibility of a visit to China by North Korean leader Kim Jong-il and are paying close attention." Kim may embark on his trip as early as today. It would be his first overseas visit since his stroke in August 2008.
• Continued Chinese Financial Support of N.Korea Questioned
  North Korea's leader appears poised to travel to China, as his country reels from what regional analysts describe as an economic policy fiasco. China has long been a generous patron of Pyongyang, but at least one Beijing scholar warns in blunt terms that China will not rescue the North this time. A spokeswoman for South Korean President Lee Myung-bak said Wednesday there is a "high possibility" that North Korean leader Kim Jong-il will make a rare trip outside his country to visit China. Kim's government is believed to be undergoing extreme strain because of the fallout from failed currency and market reforms. South Korean media speculated he may go to China to seek help in bolstering the economy. At a forum devoted to the North Korean economy Wednesday in Seoul, regional political analysts warned the North's economic policy blunders are pushing the totalitarian system to the brink of a collapse. Peking University Professor Zhu Feng, one of the forum participants, issued a frank warning to the North not to expect any large handouts from China. "Bailing out North Korea's economy [is] easy. We have the capability. We have no intention," said Zhu. [China NK] [Academia]
• Second round of ECFA negotiations under way
  Publication Date:04/01/2010 Source: United Daily News Taipei and Beijing could sign the cross-strait economic cooperation framework agreement by July, provided that the early-harvest list under negotiation focuses on items that both sides can easily agree upon, officials said March 31. The two-day, second round of negotiations between Taipei and Beijing over the economic cooperation framework agreement began March 31 at the Ta Shee Resort in northern Taiwan. On April 1 the two sides are expected to enter into discussions over the goods and services early-harvest list for tariff exemptions, as well as the contents of the agreement, sources said. [FTA]
• Kim Jong-il Visit to China Still on the Cards
  Speculation continues that North Korean leader Kim Jong-il will imminently visit China. A senior South Korean government official on Wednesday said Seoul is paying close attention. Attention now focuses on early April, before the North Korean Supreme People's Assembly opens on April 9. A South Korean security official said, "In 2004, Kim crossed the Apnok (or Yalu) River three days after we found out about his plan to visit China. But in 2007, he just went to [the border city of] Sinuiju and returned."
• China, DPRK armed forces vow to further co-op
  21:06, March 30, 2010 China is ready to work with the Democratic People's Republic of Korea (DPRK) to deepen bilateral exchanges and cooperation, so as to bolster the development of the relations between the two countries and militaries. Xu Caihou, vice chairman of China's Central Military Commission, made the remarks when meeting with An Yonggi, director of the foreign affairs department of the DPRK's Ministry of the People's Armed Forces. Xu said the Communist Party of China, the Chinese government and armed forces attach great importance to developing the exchanges and cooperation with the DPRK. [China NK]
• China welcomes DPRK in attending Shanghai World Expo: FM spokesman
  19:04, March 30, 2010 China welcomes countries including the Democratic People's Republic of Korea (DPRK) to participate in the 2010 Shanghai World Expo, a Foreign Ministry spokesman said Tuesday. Spokesman Qin Gang made the remarks at a routine news briefing in Beijing in response to a question on China's expectation of the DPRK's participation in the global event. "Shanghai World Expo is an event for countries to enhance communication and cooperation as well as increase mutual understanding," Qin said. "China offers support and services for their participation. " DPRK Chamber of Commerce Vice-Chairman Ri Song Un told Xinhua on March 18 that the country had already finished preparatory work for the 2010 Shanghai World Expo, its first Expo appearance. Situated in an area of 5.28 square kilometers at the core the city of Shanghai to exhibitions, events and forums, the six-month expo starting from May 1 will attract about 200 nations and regions and international organizations' participation, as well as 70 million visitors from home and abroad.

• Taiwan expects to sign ECFA with China in June: economics minister
  2010/03/30 21:45:29 Taipei, March 30 (CNA) With the approach of the second round of cross-Taiwan Strait talks on a proposed economic cooperation framework agreement (ECFA), Taiwan is expecting the pact to be signed in June, Minister of Economic Affairs Shih Yen-shiang said Tuesday. The talks will be held March 31-April 1 at the Ta Shee Resort in Taoyuan County, some 40 km south of Taipei. Shih said the negotiations will focus on items in the machinery, upstream and midstream textile, petroleum and transport manufacturing sectors, which are among the 500 items Taiwan has put on its "early harvest" list for immediate tariff easing or lifting upon the signing of the cross-strait trade pact. Shih explained that Taiwan is eager to talk about items that are either on the zero-tariff list of the free trade agreement between China and the Association [FTA]
• Rio sacks staff jailed by China for bribery
  By Patti Waldmeir in Shanghai and Peter Smith in Sydney Published: March 29 2010 08:22 | Last updated: March 30 2010 00:12 Tom Connor, Australia’s consul general in Shanghai, speaks during a media briefing outside the Shanghai No. 1 People’s Intermediate Court on Monday Rio Tinto quickly distanced itself on Monday from four of its employees convicted in China for accepting bribes and stealing commercial secrets by sacking the men for “deplorable behaviour”. A Shanghai court sentenced Stern Hu, the former top Rio iron ore salesman in China, and three former Chinese colleagues to between seven and 14 years in a landmark case that shone a spotlight on the legal system and business practices in China. Within hours of the men being sentenced, Tom Albanese, chief executive of the Anglo-Australian miner, said the case would not jeopardise relations with China, the group’s biggest customer. “I am determined that the unacceptable conduct of these four employees will not prevent Rio Tinto from continuing to build its important relationship with China,” Mr Albanese said. “This is a high priority for me personally.” [Corruption]
• Seoul watching for signs of N. K. leader's possible visit to China 
    South Korea is watching closely for signs of North Korean leader Kim Jong-il's possible visit to China, an official said Monday, as his recent tour of provincial areas fueled speculation that a Chinese trip may be imminent, according to Yonhap News. North Korea watchers say this week is the best time if Kim intends to visit the neighboring nation in the near future because Pyongyang's rubber-stamp legislature is scheduled to convene late next week. Kim's trip to China, if realized, would be a key indication that the North is ready to return to international nuclear talks. "There are still no definitive signs that Chairman Kim will visit China," a senior government official said, referring to the reclusive leader by his official title as head of the National Defense Commission. "However, the government is maintaining a close watch with all possibilities open."  
• Taiwan-Hong Kong mutual cooperation forges ahead
  Publication Date:03/29/2010 Source: China Times Taiwan and Hong Kong will each soon establish a commission to facilitate bilateral economic and cultural cooperation, Mainland Affairs Council Deputy Minister and spokesman Liu Te-shun said March 28. The decision was made during MAC Chief Secretary Chang Shu-ti’s visit to Hong Kong, where he met with representatives of the Hong Kong Special Administrative Region government to finalize details of the plan. The Taiwan-Hong Kong Economic and Cultural Cooperation Council will come under the auspices of the MAC in Taiwan, while its counterpart the Hong Kong-Taiwan Commerce and Trade Cooperation Committee will be under the SAR’s Financial Secretary. The two commissions are expected to not only facilitate economic and trade cooperation between the two sides, but to comprehensively improve Taiwan-Hong Kong relations. [FTA]
• Rio executive sentenced to 10 years in jail
  By Patti Waldmeir in Shanghai Published: March 29 2010 08:22 | Last updated: March 29 2010 08:43 Stern Hu, Rio Tinto’s former top iron ore salesman in China, was sentenced to 10 years in jail on Monday after a Shanghai court found him guilty of bribery and stealing commercial secrets in a case closely watched by companies doing business in China. Mr Hu, an Australian, was accused of paying bribes to obtain information regarding the China Iron and Steel Association’s position in iron ore contract negotiations. Last Monday, he admitted to taking some bribes as his trial began but disputed the amounts claimed by the prosecution. He and three Chinese Rio employees, who also received jail sentences ranging from seven to 14 years, were arrested and detained more than nine months ago. On Monday, they showed no emotion when they stood up in a Shanghai court for the verdicts. Witnesses said Mr Hu had kept his head bowed the whole time. [Corruption]
• China’s bad bet against America
  March 14th, 2010 Author: Joseph Nye, CSIS and Harvard China-US relations are, once again, in a downswing. China objected to President Barack Obama’s receiving the Dalai Lama in the White House, as well as to the administration’s arms sales to Taiwan. There was ample precedent for both decisions, but some Chinese leaders expected Obama to be more sensitive to what China sees as its ‘core interests’ in national unity. [China confrontation] [Softpower]
• China not aggressive enough in repatriating Taiwan fugitives: official
  2010/03/28 19:56:42 Taipei, March 28 (CNA) A ranking justice official said Sunday that China has not been aggressive enough in helping to return Taiwanese fugitives who
  He also raised the question of why most of the Taiwan fugitives arrested and repatriated by Chinese authorities are those wanted for crimes other than financial fraud. China has been criticized as being reluctant to send back the scores of Taiwanese who have fled to escape penalties for economic crimes, including Chen You-hao, former chairman of the now defunct Tuntex group. Chen fled to China [Straits]
• Chinese Automaker Geely to Buy Volvo
  By Keith Bradsher Published: March 28, 2010 HONG KONG — Ford Motor reached an agreement on Sunday to sell its Volvo subsidiary to a Chinese conglomerate, in the clearest confirmation yet of China’s global ambitions in the auto industry. Zhejiang Geely Holding Group, based in Hangzhou, agreed to pay $1.8 billion for Volvo, with $1.6 billion in cash and the rest in a note payable to Ford. The sale of one of Europe’s most storied brands shows how China has emerged not just as the world’s largest auto market in the past year, but also as a country determined to capture market share around the globe. [China rising] [Auto]
• US expert contends de jure independence risky
  Publication Date:03/25/2010 Source: United Daily News The opposition Democratic Progressive Party needs to fundamentally reassess whether its goal is to preserve Taiwan’s de facto independence or pursue de jure independence, according to U.S. expert on cross-strait relations David G. Brown. “If the party remains wedded to pursuing policies to achieve de jure independence, it should understand that Taiwan and US interests would increasingly diverge and that Taipei would likely not enjoy continuing support from a future US administration or congress,” Brown said.
• Network Solutions, GoDaddy cease registering Web sites in China
  By Ellen Nakashima and Cecilia Kang Thursday, March 25, 2010; 3:48 PM Two major Internet domain name registration companies have ceased registering Web sites in China in response to intrusive new government rules that require applicants to provide extensive personal data, including photographs of themselves. GoDaddy.com, the world's largest domain name registration company, and Network Solutions, based in Herndon, objected to policies that were imposed by China in December. The rules, Go Daddy said, are an effort by China to increase monitoring and surveillance of Web site content and could put individuals who register their sites with the firm at risk. The company also said the rules will have a "chilling effect" on new domain name registrations. [China confrontation] [Surveillance]
• Google's decision signals change in Western businesses' approach to China
  By John Pomfret Washington Post Staff Writer Wednesday, March 24, 2010 BEIJING -- The showdown between Google and the world's most populous country marks a turning point in one of the great alliances of the late 20th century -- the bond between Western capitalists and Beijing's authoritarian system. After Google's audacious decision to confront China over the issue of censorship, officials here insisted Tuesday that the Internet giant's case was an isolated one and would not affect China's opening to the West or its market-oriented reforms. But Western businesspeople said the episode had underscored a broader sea change in how U.S. and European companies deal with the government here. More specifically, they said, Western businesses have begun to push back openly against China. [China confrontation]
• Rio Tinto Workers Admit Taking Bribes in China
  By David Barboza Published: March 22, 2010 SHANGHAI — China’s high-profile prosecution of executives of the British-Australian mining giant Rio Tinto took a bizarre turn on Monday, as the executives, once accused of spying, confessed instead to accepting bribes from Chinese steel makers. The guilty pleas, which came on the first day of a three-day trial in Shanghai, confounded most accounts — including extensive coverage in China’s state-owned media — of why the four executives were arrested last July and what the case reveals about corruption in China’s steel industry, the world’s largest. [Corruption]
• High-speed rail linking central, western China starts operation
  2010-02-06 19:19:23 XI'AN, Feb. 6 (Xinhua) -- A high-speed railway linking central China city Zhengzhou and northwestern city Xi'an, went into operation Saturday. With a speed of 350 kilometers per hour, the high-speed Electric Multiple Unit (EMU) train coded G2004 is about to leave Xi'an for Zhengzhou in Xi'an Railway Station, northwest China's Shaanxi Province, on Feb. 6, 2010. (Xinhua/Ding Haitao) The 505-km Zhengzhou-Xi'an high-speed railway, the first of its kind in central and western China, cut the travel time between the two cities from former more than six hours to less than two hours, said local railway authorities Saturday. [Railways]
• Taiwan Infomercial Plays Up Fear of N.Korea-Style Isolation
  The government of Taiwan is using the image of economically isolated North Korea to publicize a proposed Economic Cooperation Framework Agreement with China. An infomercial broadcast in Taiwan on Thursday evening says the island nation "does not want to become a second North Korea" -- the only country in Asia excluded from all kinds of regional economic integration agreements. The 90-second infomercial was produced by the Mainland Affairs Council, Taiwan's top China policy coordinating body. "The description should allow the people in Taiwan to get a better picture of Taiwan's situation," MAC Vice Minister Liu Te-shun was quoted as saying by Focus Taiwan. The spot explains that if Taiwan signs the ECFA, businesses will be able to compete on equal terms with rivals abroad and that "Taiwan's sovereignty will be safeguarded only when the people's right to live is safeguarded." [FTA]  
• China warns U.S. that 'trade war' will hurt Americans even more
  By John Pomfret Washington Post Staff Writer Sunday, March 21, 2010; 1:53 PM BEIJING -- China's minister of commerce warned that United States on Sunday that if it launches a "trade war" against China by leveling punitive tariffs on Chinese imports, the United States would suffer the most. Minister Chen Deming also said what he termed was the U.S. government's "obsession" with China's exchange rate could not be seriously addressed until the U.S. government stopped blocking the export of high-tech products, such as supercomputers and satellites, to China. "If some congressman insist on labeling China as a currency manipulator and slap punitive tariffs on Chinese products, then the China government will find it impossible not to react," Chen said in an interview with The Washington Post. "If the United States uses the exchange rate to start a new trade war, China will be hurt but the American people and U.S. companies will be hurt even more."
  Chen said if the U.S. threats were geared toward limiting imports and decreasing America's trade imbalance that way, it wouldn't work. Perhaps imports from China would fall, but that wouldn't mean that Americans would start producing goods such as telephones and TVs again. "That production isn't going to return to America, that's just not practical," he said. "Globalization has changed all that." "But if you want to increase your exports, this strategy also won't work," he warned. "How are you going to get China to buy more of your products if you insult it?" Chen said the best way for the United States to increase its exports to China would be to relax restrictions on the export of high-technology and dual use goods to China.
  Chen gave a few examples of U.S. restrictions. After the massive earthquake in Sichuan in 2008, China sought to buy engines for a batch of Blackhawk helicopters that the United States had sold China in the 1980s when the two countries were cooperating against the then-Soviet Union. Chen said China was trying to make the purchase so it could use the helicopters to save people injured in the quake, but that the United States rejected the request. (U.S. officials have raised doubts about that China's claim, pointing out that Blackhawk helicopters have a limited carrying capacity.) China solved its problem by borrowing helicopter engines from Russia and subsequently buying helicopters from Russia, Chen said. The same holds true for satellites, he added. China would rather buy them from the United States, but concerns about export controls have forced it to source satellites from Europe, Chen said. "This is the reason why our trade balance with the United States is skewed," Chen said. "The United States has strict export controls to China." [Sanctions] [China confrontation]
• China to Respond if Hit By U.S. Trade Sanctions: MOFCOM
  By REUTERS Published: March 21, 2010  BEIJING (Reuters) - Beijing will take retaliatory steps if the United States declares China a currency manipulator and imposes trade sanctions, commerce minister Chen Deming said on Sunday, the latest salvo in a spat over the value of the yuan. [Currency] [Resurgence] [Sanctions]
• China’s Growth Shifts the Geopolitics of Oil
  By JAD MOUAWAD Published: March 19, 2010
  The recession also precipitated a milestone for Saudi Arabia and the global energy market. While China’s successful economic policies paved the way for a quick rebound there, the recession caused a deeper slowdown in the United States, slashing oil consumption by 10 percent from its 2005-7 peak. As a result, Saudi Arabia exported more oil to China than to the United States last year. While exports to the United States might rebound this year, in the long run the decline in American demand and the growing importance of China represent a fundamental shift in the geopolitics of oil. “We believe this is a long-term transition,” Mr. Falih said in a recent interview. “Demographic and economic trends are making it clear — the writing is on the wall. China is the growth market for petroleum.” [Energy] [China rising]
• China's speedy rails going overseas
  Source: Global Times [08:07 March 15 2010] Comments By Deng Jingyin China's popular high-speed rails and trains are catching on overseas and the country's technology is in big demand in many countries including the United States, Latin America and Europe, government officials said during the sessions of China's top legislature and advisory body on Saturday. Wang Zhiguo, vice minister of the Ministry of Railways, said China plans to bid on a project to build high-speed rails in the US after President Barack Obama urged cooperation between the two countries to work on high-speed rails during his visit to China last year. "The ministry signed a memorandum of understanding on strategic cooperation with the GE Corporation. We have sent a team to the US for investigation and arranged relevant enterprises to bid," Wang said. Currently, China is building high-speed railways in Turkey and Venezuela and will bid for similar projects in Brazil.
  According to an earlier report by Changjiang Daily, China is planning a cross-Straits rail link to connect Chinese mainland with Taiwan (Kunming- Ximen-Taiwan), which will be anchored in Fujian Province. "The west coast of the Strait is an important part in the network planning. Building the high-speed rail to Taiwan is in the medium and long-term plan but so far it is in the initial research period," said Zheng Jian, planner in chief of the ministry. [Railways] [China rising] [Straits]
• China Drawing High-Tech Research From U.S.
  By KEITH BRADSHER Published: March 17, 2010 XIAN, China — For years, many of China’s best and brightest left for the United States, where high-tech industry was more cutting-edge. But Mark R. Pinto is moving in the opposite direction. Mr. Pinto is the first chief technology officer of a major American tech company to move to China. The company, Applied Materials, is one of Silicon Valley’s most prominent firms. It supplied equipment used to perfect the first computer chips. Today, it is the world’s biggest supplier of the equipment used to make semiconductors, solar panels and flat-panel displays. [China rising] [Decline] [R&D]
• Time is money on Maglev train
  * Source: Global Times * [02:17 March 18 2010] By Guo Qiang Controversy has erupted over the possible construction of a 200-kilometer magnetic levitation train line connecting Shanghai and Hangzhou in Zhejiang Province, with critics saying the project is a waste of over 20 billion yuan. The Ministry of Railways chief planner Zheng Jian revealed last Saturday that China has given the green light to the Maglev project, which was suspended in 2007 over environmental and cost concerns. Opponents of the project contest it is unnecessary, as one high-speed railway has already been built, reducing the travel time to 80 minutes from two hours on a conventional train. Strengthening their argument is the fact that a new express railway, to be completed at the end of this year, will run at speeds of up to 300 kilometers per hour, cutting travel time further, to 48 minutes. [Railways]
• The Liberty Times: Presidents true colors exposed
  John J. Tkacik Jr., an American expert on Chinese affairs, was criticized by a spokesman of the Presidential Office the day after he warned Taiwan at a conference in Taipei against forging its proposed cconomic cooperation framework agreement (ECFA) with China. How did Tkacik, who has served as an official at the U.S. State Department and as a research fellow at the Heritage Foundation in Washington, come under fire from the Taipei authorities? All he said is that “Taiwan is an independent state, but it seems to be beginning to giving up its independence, ” and that “ECFA will push Taiwan to the sidelines in economic terms.” [Straits] [FTA] [US global strategy] [Fragmentation]
• US lawmakers attack China ahead of Nov. elections
  By FOSTER KLUG (AP) – 10 hours ago WASHINGTON — China is once again the country Congress loves to hate. After a lull last year, U.S. politicians jockeying ahead of crucial November elections have stepped up attacks on China as a way to win support from voters worried that the Asian power is taking American jobs. China-bashing eased during President Barack Obama's first year in office, partly as a nod to the administration's attempts to get Chinese help settling nuclear standoffs with North Korea and Iran and important environmental and economic initiatives. [China confrontation]
• Kim Jong-il’s visit to China: What should we expect?
  March 14th, 2010 Author: Jonas Parello-Plesner There are rumours that Kim Jong-il will visit China late-March. If the visit takes place, it must be after the 18 March when the joint US-ROK military training ends, which is regarded by North Korea as a prelude to war. The supreme commander can’t be seen to leave the country during that period. Alternately, the visit might be made by a top official in the North Korean system, such as Kim Young-nam. So, what should we expect from this meeting?
•  China Takes Aim at U.S. on Economy
  By ANDREW BATSON, IAN JOHNSON And ANDREW BROWNE BEIJING—Premier Wen Jiabao aimed sharp words at Washington on Sunday, ceding little ground on China's currency policy and suggesting that U.S. efforts to boost its exports by weakening the dollar amounted to "a kind of trade protectionism." In his once-yearly news conference, Mr. Wen blamed U.S. weapons sales to Taiwan and President Barack Obama's meeting with Tibet's spiritual leader, the Dalai Lama, for causing a recent deterioration in what he called China's most important foreign relationship. "These moves have violated China's territorial integrity," Mr. Wen said. "The responsibility does not lie with the Chinese side but with the United States." Mr. Wen said a good China-U.S. relationship "makes both sides winners while a confrontational one makes both sides losers." Mr. Wen went into detail about his personal role at the Copenhagen climate talks late last year, showing flashes of emotion as he sought to correct a widespread belief that he snubbed Mr. Obama by sending a lower-ranking official to a meeting. "My conscience is clear despite the slander of others," he said, quoting an ancient Chinese proverb. Instead, he argued, it was China that felt insulted. Mr. Wen's forthright comments reflect a new dynamic in what is arguably the most important bilateral relationship in the world. As the only major economy still growing strongly, and the largest creditor to the U.S., China is behaving with new assertiveness. Beijing has emerged from the global recession with a fresh confidence about its state-led economy, which has delivered stimulus projects—everything from high-speed railways to highways and bridges—with remarkable efficiency. At the same time, it makes no secret of its disdain for U.S. economic management, and is in no mood to be lectured by Washington about how to support the world economy. [China rising] [Resurgence]
• N.Korea 'Expands Counter-Intelligence Force in China'
  North Korea has reportedly increased the deployment of counter-intelligence officials to China in light of the reclusive country’s mounting social tensions over its recent currency reform. Radio Free Asia says the number of North Korean counter-intelligence officials stationed at China's Yanji city in Jilin Province rose from six to more than 10 in February.  
• The root of conflict between the U.S and China
  Selig S. Harrison, Director of the Asia Program at the Center for International Policy
  If relations between the United States and China continue to deteriorate, the consequences for all of Northeast Asia, including Korea, could be significant. So the bitter controversies between Washington and Beijing over arms sales to Taiwan and over President Obama‘s meeting with the Dalai Lama are worrisome, especially the still-explosive arms sales issue. For the past month, Chinese officials and editorials in the government-controlled media have angrily attacked the Obama Administration’s decision to sell $6.4 billion in weaponry to Taipei, including Black Hawk helicopters, sophisticated communications equipment, and 114 Patriot missiles. The depth of Chinese anger was demonstrated when a group of high-ranking military officers urged the government to use its economic clout to punish Washington by getting rid of some of the vast Chinese holdings of U.S. Treasury securities.  
  Most U.S. officials, and most well-informed Americans, have no idea at all why China cares so much about the arms sales issue.
  The United States insisted on retaining the right to sell arms to Taiwan when it “de-recognized” the Republic of China and opened relations with the People‘s Republic. But Congress went a step further, enacting the Taiwan Relations Act, which requires U.S. sales of weaponry to Taiwan “sufficient” for its defense. This led to festering tensions with Beijing until U.S. and Chinese leaders signed the August 1982 “Second Shanghai Communiqu?.” The United States declared that it “does not seek to carry out a long-term policy of arms sales to Taiwan” and pledged that its arms sales to Taipei “will not exceed, either in qualitative or quantitative terms” the level of those supplied since 1979. In deliberately ambiguous language, the communiqu? said that the United States “intends gradually to reduce its sales of arms to Taiwan, leading over a period of time to a final resolution.” Successive U.S. administrations have ignored this commitment, poisoning a relationship with Beijing that will become increasingly important to the United States as its economic decline continues. [China confrontation] [Arms sales] [Decline] [Myopia]
• Justice minister under fire for death penalty stance
  MOJ Minister Wang Chin-feng is calling on the government to do away with capital punishment. (CNA)Publication Date:03/11/2010 Source: China Times Justice Minister Wang Chin-feng has come under fire from a broad cross-section of Taiwan society, including government officials and legal professionals, for her call to halt the executions of death row prisoners. Control Yuan member Gau Feng-shian, a former Taiwan High Court judge, said the minister’s comments should be seen strictly as personal opinions. “The decision to execute 44 convicts on death row should be based on law, rather than just Wang’s say-so,” she said. [human rights] [Double standards]
• China has a Congo copper headache
  By Peter Lee An agreement between the Democratic Republic of Congo (DRC) and China in 2008 to swap 10 million tonnes of copper ore for US$9 billion worth of mine and civic infrastructure looked like a genuine win-win [China confrontation] [US global strategy]
• Who’s Bold? Who’s Ignoring Obama’s China Rollback Strategy?
  Not China. In the secret history of the Obama administration’s campaign to roll back Chinese inroads in Africa, Western shenanigans in the Democratic Republic of Congo will deserve a separate chapter. The West blocked China’s massive $9 billion dollar ore-for-infrastructure project in order to protect its flagship project—Freeport McMoRan’s Tunke Fungurume copper mine--and show the DRC who was boss down in the heart o’ darkness (hint: it wasn’t the DRC government or the Chinese). The Chinese project is going ahead, albeit on a reduced scale. However, looking at the current balance of forces in the DRC, the project now looks as much as another point of Chinese exposure to Western leverage as it does a masterstroke in China’s African diplomacy. [China confrontation] [US global strategy]
• China-North Korea Relations
  By the Congressional Research Service March 9th, 2010 Dick K. Nanto, Specialist in Industry and Trade, Mark E. Manyin, Specialist in Asian Affairs, and Kerry Dumbaugh, Specialist in Asian Affairs, at the Congressional Research Service wrote this report on the relationship between the PRC and DPRK. The report examines the PRC’s DPRK policy, the DPRK’s policy objectives in its interactions with the PRC, Sino-DPRK diplomatic and economic relations, and the impact of PRC sanctions on the DPRK. [China NK]
• Strained US  China Relations: Chinas Crucial Role as America's Creditor
  By Prof. James Petras Global Research, March 8, 2010 The Obama Administration has heightened tensions with China through a series of measures which can only be characterized as major provocations designed to undermine relations between the two countries. These provocations include political support for separatist movements, such as the US-funded theocratic-monk led Tibetan secessionists and the Washington-based Uyghur secessionists, as well as through the $6.4 billion-dollar advanced arms sales to Taiwan, a virtual protectorate of the US Navy. President Obama has publicly met with and openly backed these separatist and secessionists groups, flaunting Washingtons refusal to recognize Chinas existing borders. This is part of the US strategy of encouraging the physical break-up of independent nations, which are viewed as obstacles to its program of global military empire building. [China confrontation]
• What U.S. officials heard in Beijing
  Posted By Josh Rogin Tuesday, March 9, 2010 - 12:36 AM Share When top Obama administration officials went to Beijing last week, they had a broad agenda for discussion, including Iran, climate change, and North Korea. What did the Chinese want to talk about? Taiwan, Taiwan, and Taiwan. Several China experts close to both sets of officials said that Deputy Secretary of State James Steinberg and National Security Council Senior Director Jeffrey Bader went to China with the understanding that they would have substantive discussions on some key issues of U.S. interest, but the Chinese side used the opportunity to try to bargain for an end to U.S. arms sales to Taiwan, something Beijing has wanted for decades and now feels bold enough to demand. [China confrontation] [Separatism] [Military industrial complex] [Arms sales]
• NK Seeks Revision of 1961 Defense Treaty With China
  MARCH 04, 2010 08:46 North Korea is known to have proposed to China the revision of a bilateral cooperation treaty in talks on a breakthrough in international sanctions following Pyongyang’s nuclear test in May last year. When Chinese Premier Wen Jiabao held talks with North Korean leader Kim Jong Il in Pyongyang in October last year, China’s official Xinhua News Agency did not say whether they discussed the revision of a clause in the treaty guaranteeing China`s automatic intervention in the event of a security threat in North Korea. An informed source on North Korea based in Beijing said yesterday, however, that the proposed revision was on the agenda at the Wen-Kim meeting, adding the matter will likely be discussed when Kim visits Beijing. The treaty plays a key role in buttressing the military alliance between Pyongyang and Beijing. The DPRK-China Treaty of Friendship, Cooperation, and Mutual Assistance was signed in July 1961 and remains valid unless one side agrees to a revision or abolishment. A clause guarantees automatic intervention if one of the signatories is attacked by a country or allied countries. The source said Pyongyang proposed to Beijing that the clause be changed so that one side can militarily intervene in the other’s war or in other ways upon request. North Korea might also be seeking the revision out of fear that China could intervene if a situation occurs in North Korea regardless of Pyongyang’s will. [Takeover] [China NK]
• North’s leader likely to visit China
  March 02, 2010 North Korean leader Kim Jong-il could visit China this month and the six-party talks would soon resume afterward, a diplomatic source said yesterday. According to the source, Wi Sung-lac, South Korea’s chief nuclear negotiator, and Stephen Bosworth, the special U.S. representative for North Korea policy, received “detailed briefings” from their Chinese counterparts last month in Beijing. Wi and Bosworth’s trips came after Kim Gye-gwan, the chief North Korean nuclear negotiator, visited Beijing.  
• Toyota Chief 'to Explain All' in China
  Following testimony at a U.S. Congressional hearing last week, Toyota president Akio Toyoda will visit China to explain his company's worldwide recall debacle to the world's largest automotive market. Toyoda says he will explain the mess at a press conference in Beijing on Monday, AP reported on Sunday. The quasi-official China News agency said he aimed to "boost confidence and ease consumer worries." A total of 13.6 million cars were sold in China last year, more than the 10 million sold in the U.S. [China rising] [Auto]
• The future of the international currency system and China’s RMB
  February 28th, 2010 Author: Yiping Huang, Peking University and ANU The global financial crisis could mark the beginning of the end for the US dollar’s dominance over the global economy. But the US dollar will not leave the global stage in the foreseeable future. It will remain one of the world’s most important currencies for many years to come. But the difficulties in maintaining the US dollar’s role as a global reserve currency are large, and are best characterised by the ‘Triffin Dilemma’. As growing international economic transactions increase offshore demand for US dollars, the US current account deficit necessarily grows. But the high deficit diminishes global investors’ confidence in the dollar. In sum, the international currency system is going to change. [Reserve]
• We Must Keep a Close Eye on N.Korea-China Relations
  Park Sung-joon North Korean leader Kim Jong-il on Monday told visiting Chinese Premier Wen Jiabao that denuclearization of the Korean Peninsula was his father Kim Il-sung's "last wish." But he called once again for the U.S. to end its "hostile policies" toward the North through bilateral talks. And he added he was willing to return to "multilateral talks including the six-party talks" depending on progress in bilateral talks with the U.S. [China NK]
• DPRK and China Deal to Build Bridge
  Pyongyang, February 26 (KCNA) -- An inter-governmental agreement on joint construction, management and preservation of a bridge over the River Amnok on the DPRK-China border was made between the DPRK and China in Dandong City on Thursday. The agreement was signed by Pak Kil Yon, vice-minister of Foreign Affairs, from the DPRK side, and Wu Hailong, assistant to the foreign minister, from the Chinese side.
• There's a new Red Scare. But is China really so scary?
  By Steven Mufson and John Pomfret Sunday, February 28, 2010 With the American economy struggling and the political system in gridlock, there is one thing everyone in Washington seems to agree on: The Chinese do it better. [China confrontation]

• For Now, China Must Ignore Calls for Stronger Yuan
  If Beijing were to let its currency strengthen too soon, millions of Chinese would lose their jobs. U.S. workers wouldn't benefit By Shaun Rein The U.S. economy lumbers along while China's gross domestic product grows at double-digit rates—and a lot of Americans say China isn't playing fair. Among the leading voices is that of New York Times columnist Paul Krugman, who has argued for months in columns and blog posts that by not letting its currency, the yuan, appreciate against the dollar, China is being mercantilist and predatory. In what seems to be a first for a modern-day Nobel Prize-winning economist, he seems to be trying to inflame the public to start a trade war with China, claiming that 1.4 million Americans have lost jobs because of an artificially low yuan. [Currency]
• China Investigating Whether It Helped N.Korea Violate UN Sanctions
  China is looking into whether it may have been involved in aiding a North Korean arms shipment that was bound for central Africa. The shipment was intercepted by South Africa and is in violation of United Nations sanctions against Pyongyang. South Africa this week sent a letter to the United Nations Security Council detailing its seizure of a shipment of North Korean tank parts bound for the Republic of Congo. News reports say the letter details the shipment's route, saying it was first loaded onto a ship in China and then transferred to a French-owned ship in Malaysia. [Sanctions] [UNUS] [Imperialism]
• Construction of N.Korea-China Bridge to Start in October
  The construction of a new bridge linking China and North Korea across the Apnok or Yalu River is expected to begin in October, a year after Chinese Premier Wen Jiabao agreed to the project during his visit to the North. The Shenyang Evening News in China on Thursday said officials in Dandong, Liaoning Province paved the way for construction to begin in October. The People's Daily also reported that preparations are progressing smoothly. The four-lane bridge linking Langtou in Dandong and Sinuiju in North Pyongan Province will be 20.4 km long and 33 m wide. China will foot the entire bill of around W300 billion (US$1=W1,163). Transport authorities in Liaoning Province selected six finalists from 22 designs for the bridge from eight design companies. Dandong is the point where 70 percent of trade between China and North Korea passes, but the existing bridge, which was built in 1937, is dilapidated. So far North Korea had been reluctant to accept China's offer to build a wider bridge for fear that it would encourage defections but agreed during Wen's visit. [China NK]
• China Warns U.S. Against Selling F-16s to Taiwan
  February 25, 2010 By ANDREW JACOBS BEIJING — A top Chinese military official reaffirmed China’s resolve to punish the United States over its decision to sell weapons to Taiwan and suggested on Thursday that there would be even greater consequences should Washington fulfill a longstanding request by Taiwan for advanced fighter jets. The official, Huang Xueping, a spokesman for the Ministry of National Defense, warned the United States to “speak and act cautiously” if it wanted to avoid further damage to bilateral ties, according to Xinhua, the state news agency. Mr. Huang said that earlier threats to suspend military cooperation and exchanges between the countries “remain unchanged,” but he did not elaborate on what such sanctions would entail. In previous statements, the Chinese government has said that it would cancel visits between top military leaders and retaliate against American companies engaged in weapon sales to Taiwan. [Arms sales] [China confrontation] [Resurgence]
• China could build up nuclear capability to counter U.S. missile shield
  © ?ollage by RIA Novosti Related News Japan against joining U.S. global missile shield - Baluyevsky Russian defense chief reiterates concerns over U.S. missile shield Putin: We’ll Overwhelm U.S. Missile Shield. (But Thanks for the Concessions, Barack!) Turkey opposed to U.S. missile defense deployment Russia prepares response to revised U.S. missile shield plans 21:2624/02/2010 China could strengthen its nuclear capability in response to U.S. global missile defense plans, a Russian military expert said on Wednesday. "At present, China has a very limited nuclear potential, but my recent contacts with Chinese military representatives indicate that if the United States deploys a global missile defense system, in particular in the Far East, China will build up its offensive capability," said Lt. Gen. Yevgeny Buzhinsky, former department deputy head in the Russian Defense Ministry. He did not elaborate on how a potential missile shield could be countered with nuclear weapons or why it would threaten China. [Missile defense] [China confrontation]
• $123,000,000,000,000* *China’s estimated economy by the year 2040. Be warned.
  BY ROBERT FOGEL | JANUARY/FEBRUARY 2010 In 2040, the Chinese economy will reach $123 trillion, or nearly three times the economic output of the entire globe in 2000. China's per capita income will hit $85,000, more than double the forecast for the European Union, and also much higher than that of India and Japan. In other words, the average Chinese megacity dweller will be living twice as well as the average Frenchman when China goes from a poor country in 2000 to a superrich country in2040. Although it will not have overtaken the United States in per capita wealth, according to my forecasts, China's share of global GDP -- 40 percent – will dwarf that of the United States (14 percent) and the European Union (5 percent)30 years from now. This is what economic hegemony will look like. Most accounts of China's economic ascent offer little but vague or threatening generalities, and they usually grossly underestimate the extent of the rise -- and how fast it's coming. (For instance, a recent study by the Carnegie Endowment for International Peace predicts that by 2050, China's economy will be just 20 percent larger than that of the United States.) Such accounts fail to fully credit the forces at work behind China's recent successor understand how those trends will shape the future. Even China's own economic data in some ways actually underestimate economic outputs. [China rising] [Decline]
• Think Again: Asia's Rise
  Don't believe the hype about the decline of America and the dawn of a new Asian age. It will be many decades before China, India, and the rest of the region take over the world, if they ever do. BY MINXIN PEI | JULY/AUG 2009 "Power Is Shifting from West to East." Not really. Dine on a steady diet of books like The New Asian Hemisphere: The Irresistible Shift of Global Power to the East or When China Rules the World, and it's easy to think that the future belongs to Asia. As one prominent herald of the region's rise put it, "We are entering a new era of world history: the end of Western domination and the arrival of the Asian century." Sustained, rapid economic growth since World War ii has undeniably boosted the region's economic output and military capabilities. But it's a gross exaggeration to say that Asia will emerge as the world's predominant power player. At most, Asia's rise will lead to the arrival of a multi-polar world, not another unipolar one. More... Asia is nowhere near closing its economic and military gap with the West. [China rising] [Decline]
• Taiwan air defense weak: US report
  Publication Date:02/23/2010 Source: Liberty Times A U.S. Defense Intelligence Agency assessment points out Taiwan does not have enough jet fighters to withstand an attack from its military rival mainland China, according to the Associated Press and Reuters Feb. 22. Reuters said the report could lead to a new U.S. arms package for Taiwan in the face of mainland China’s angry reaction, while the Associated Press said the U.S. Department of Defense has serious doubts about Taiwan’s air power and air defense capabilities. [Arms sales] [Military industrial complex] [China confrontation]
• N.Korean, Chinese Nuke Envoys Meet
  North Korea's veteran chief nuclear negotiator on Tuesday visited China and met with his Chinese counterpart. Pyongyang's Vice Foreign Minister Kim Kye-gwan was seen arriving in Beijing on the same plane from the North as Wang Jiarui, the director of the Chinese Communist Party's International Liaison Department. In Beijing, Kim reportedly met former Chinese Vice Foreign Minister Wu Dawei. [China NK] [Six Party Talks]
• Dear laowai, don't mess with our Chinese-ness
  By Huang Hung (China Daily) Updated: 2010-01-12 07:02 Now, listen up, you foreigner boys and girls, Chinese New Year is around the corner and I want to talk to you seriously about fireworks. I saw this picture in a newspaper, where a smiling, cordial Chinese girl (rather pretty as well) was explaining the tradition of lighting fireworks to a group of foreign guys. They all looked very happy. I will let you know that is false information. Fireworks are no small matter, and no laughing matter either. So wipe that smirk off your face and listen up. As a Chinese, I want to be honest with you. For the past 30 years, we have opened up to the West, and welcomed foreigners like yourselves to come here to do business, to make money, even gave you some easy credit to let you buy real estate, marry our women, whatever. But this does not make you Chinese. There are things we reserve for ourselves, and it really doesn't matter how long you have been here, just don't assume you can be one of us, and don't touch the following three things:
  CHICKEN FEET, SEA CUCUMBERS AND FIRECRACKERS!
• Is the renminbi the next global currency?
  Geng Xiao, director of the Brookings-Tsinghua Center for Public Policy, discusses how divergent growth rates of the Chinese and US economies will erode the hegemony of dollar—but not right away. FEBRUARY 2010 The US dollar’s run as the world’s stable currency has stumbled with the recent financial crisis. Waiting in the wings is the renminbi. But according to economist Geng Xiao, it’s still in China’s—and the world’s—best interest not to dump the dollar just yet. In this video interview, Geng Xiao, director of the Brookings-Tsinghua Center for Public Policy, explains why China needs time to push through difficult economic reforms at home before it can allow its currency to float freely against the dollar. McKinsey Publishing’s Clay Chandler conducted the interview with Xiao in Hong Kong. [Reserve] [China rising]
• 'Two countries' reference clarified by Presidential Office
  2010/02/18 15:52:49 Taipei, Feb. 18 (CNA) President Ma Ying-jeou would not refer to Taiwan and China as "the two countries, " a Presidential Office spokesman said Thursday in clarifying a press release that used the term a day earlier. The Liberty Times reported that according to a Presidential Office press release issued Wednesday, the president referred to Taiwan and China as "two countries" when he talked with a visiting U.S. congressman earlier in the day. Spokesman Wang Yu-chi said, however, that the president has not and would never refer to cross-strait relations as relations between two countries. Wang explained that according to the Republic of China Constitution, the ROC on Taiwan is a sovereign state and the Chinese mainland is an ROC "area." Under this constitutional framework, he said, the ROC does not recognize China as a sovereign nation but "does not deny that in fact mainland authorities are the effective ruling authority in the mainland Chinese area." [Straits]
• Debunking Myths about US Arms Sales to Taiwan
  by Bonnie S. Glaser Bonnie S. Glaser (bglaser@csis.org) is a senior fellow in the Freeman Chair for China Studies at the Center for Strategic and International Studies in Washington D.C. In recent weeks Chinese newspapers and television interview shows have been replete with condemnations of the sale of a $6.4 billion package of arms sales to Taiwan by the Obama administration. Chinese scholars and pundits have attributed numerous motivations to the United States for this sale, most of which are inaccurate. Understanding the reasons for the US sale of weapons to Taiwan may not diminish China’s opposition to them, but it is nevertheless important for assessing the broader US-China relationship and predicting future US policy decisions. Myth Number 1: The United States opposes the warming trend in cross-Strait relations and is seeking to inject new tensions between Taiwan and mainland China by selling arms to Taipei. US officials have repeatedly stated support for the improvement in cross-Strait relations. [China confrontation] [US global strategy] [Thinktank]
• Chinese Business Presence in Korea Grows
  The number of Chinese firms in South Korea has sharply increased. According to the National Tax Service on Sunday, the number of Chinese-owned and Chinese-invested enterprises stood at 445 in 2008, a 3.8-fold increase from 118 in 1998. This was the largest increase among foreign corporations operating here, whose total number grew 2.2-fold in the period.
• China taps more Saudi crude than US
  By Gregory Meyer in New York Published: February 21 2010 22:00 | Last updated: February 21 2010 22:00 Saudi Arabia’s oil exports to the US last year sank below 1m barrels a day for the first time in two decades just as China’s purchases climbed above that level, highlighting a shift in the geopolitics of oil from west to east. [China rising]
• IT groups warn Chinese on regulation
  By Kathrin Hille in Beijing Published: February 21 2010 17:50 | Last updated: February 21 2010 17:50 The US and the European Union are pushing China to soften or drop plans for compulsory certification of a range of technology products, as foreign IT companies warn that Beijing’s regulatory requirements are pushing them out of the market. The complaints come after Google’s announcement last month that it was reviewing the feasibility of operations in China, saying it had been attacked by hackers based there. This highlighted a broadening conflict between Beijing and foreign businesses over information security and intellectual property. Rules set to take effect on May 1 will exclude suppliers of encryption-related products such as firewalls, secure routers or smart cards, from government tenders unless they undergo testing and certification to meet Chinese standards. In some cases, this will require submitting software source codes and other confidential information.
• Jitters over China’s waning taste for T-bills
  By Robert Cookson and Michael Mackenzie Published: February 18 2010 18:16 | Last updated: February 18 2010 19:02 If there is one thing that gets investors twitchy, it is the fear that China is losing its appetite for US government bonds. As the biggest and most liquid pool of assets in the world, the US Treasury market lies at the heart of the global financial system and allows the American government to finance its trillion-dollar budget deficits. Until recently, China has been the largest foreign official holder of US debt. That is why the latest release of Treasury International Capital (Tic) data, showing that China’s holdings of Treasuries fell by a record amount in December, has caused something of a stir. China’s holdings fell by $34.2bn to $755.4bn from the previous month, prompting renewed jitters that the country was diversifying from Treasuries over fears about their future value. China’s holdings have fallen from a peak of $801.5bn in May 2009, and the data come at a time of heightened political friction between Beijing and Washington over issues such as Barack Obama’s meeting with the Dalai Lama, US weapons sales to Taiwan, and pressure on China to revalue the renminbi. [Reserve] [China confrontation] [Arms sales] [Separatism]
• A Wedge Too Far?
  Sunday, February 14, 2010 Via Laura Rozen, more talk of Hillary Clinton jawboning Saudi Arabia to assure Chinese energy supplies if a) China votes for Iran sanctions and b) Iran’s petroleum exports to China are disrupted as a result. China, of course, considers itself a great power with its own energy allies in the Middle East, not an awkward teenager who needs mom’s Chevron card to gas up the sin wagon. [US Global strategy] [Sanctions] [US China relations]
• Rollback: Is the Obama Administration Going Zero Sum on China?
  Saturday, February 13, 2010 A wise man?I believe it was Auric Goldfinger?once said: Once is circumstance. Twice is happenstance. Third time it’s enemy action. As China absorbs a sustained crotch-kicking from the United States on the issue of its impending Security Council vote on Iran sanctions, it appears to be pondering the fact that this is the third time in less than two months that China has found itself on the losing side of a diplomatic initiative by the United States . First, at the Copenhagen climate summit, Beijing apparently came prepared to negotiate on the issue of emissions monitoring and verification, but was blindsided by the U.S. strategy of publicly demanding an undefined level of “transparency” as the price of the billions of climate adaptation aid dangled before the small and vulnerable countries that China claimed to be representing. Second, Secretary of State Hillary Clinton jumped into the Google controversy with both feet, calling for China to conduct a “transparent”?hey, there’s that word again!?investigation. Now, the United States is publicly calling upon China to look beyond its narrow, short-term interests (i.e. good relations with Iran and access to its oil) in favor of the long-term interests of the region (Persian Gulf ringed with pro-U.S. regimes graciously shipping oil to China ). In each case, China is being presented with a fait accompli in which it is being asked to sacrifice its own interests for the sake of U.S. priorities?zero sum instead of win-win, in game theory parlance. And in each case, either by accident or design the Obama administration has seized upon a hot button issue that has formed a wedge between China and a vulnerable constituency: developing countries at Copenhagen , the international business community on Google, and the Arab states on Iran . In fact, with only a little glimmer of paranoia, China would be justified to see the Obama administration’s geopolitics as a conscious exercise to roll back the easy gains in Africa, the Middle East , and with business-hungry entities and states around the world during the blundering Bush years. [China confrontation] [Continuity]
• China feels US-Iran fallout
  By Peter Lee The question of the day in Washington is will the People's Republic of China veto further United Nations Security Council sanctions against Iran over Tehran's nuclear program? Informed opinion says "no". China has exercised its veto only six times in 30 years on the council. In matters core to national priorities, like punishing countries such as Guatemala and Macedonia for their ties to the Republic of China (Taiwan) and protecting the interests of Pakistan, it has acted alone. However, on broader geopolitical issues, in recent years it has vetoed resolutions only when joined by at least one other Security Council member. [China confrontation] [UNUS]
• China Alarmed by Threat to Security From Cyberattacks
  By Sharon Lafraniere and Jonathan Ansfield Published: February 11, 2010 BEIJING — Deep inside a Chinese military engineering institute in September 2008, a researcher took a break from his duties and decided — against official policy — to check his private e-mail messages. Among the new arrivals was an electronic holiday greeting card that purported to be from a state defense office. The researcher clicked on the card to open it. Within minutes, secretly implanted computer code enabled an unnamed foreign intelligence agency to tap into the databases of the institute in the city of Luoyang in central China and spirit away top-secret information on Chinese submarines. So reported Global Times, a Communist Party-backed newspaper with a nationalist bent, in a little-noticed December article. The paper described the episode as “a major security breach” and quoted one government official who complained that such attacks were “ubiquitous” in China.
  The information could not be independently confirmed, and such leaks in the Chinese news media often serve the propaganda or lobbying goals of government officials. [Cyberwar] [Media]
• China overtakes Germany as leading trade exporter
  By William Ickes (AFP) – 10 hours ago FRANKFURT — China overtook Germany last year to become the world's leading exporter as German trade suffered its sharpest slump since 1950, figures from Germany's national statistics office showed on Tuesday. "According to information of the Chinese Ministry of Commerce, Chinese exports amounted to 1,201.7 billion dollars (876.5 billion euros), while German exports totalled 1,121.3 billion dollars" last year, the Destatis office said. [Trade] [China rising] [Crisis]
• Over NT$21 billion for 2010 railway construction: CEPD
  Taipei, Feb. 9 (CNA) The government is slated to earmark NT$21.5 billion (US$671.87 million) this year for several railway construction projects around the country, exceeding the NT$18 billion set aside for road construction, the Cabinet-level Council for Economic Planning and Development (CEPD) reported Tuesday. [Railways]
• China’s hawks demand cold war on the US
  Washington believes President Obama was made to appear weak Michael Sheridan, Far East Correspondent MORE than half of Chinese people questioned in a poll believe China and America are heading for a new “cold war”. The finding came after battles over Taiwan, Tibet, trade, climate change, internet freedom and human rights which have poisoned relations in the three months since President Barack Obama made a fruitless visit to Beijing. According to diplomatic sources, a rancorous postmortem examination is under way inside the US government, led by officials who think the president was badly advised and was made to appear weak. In China’s eyes, the American response — which includes a pledge by Obama to get tougher on trade — is a reaction against its rising power. [China confrontation] [Resurgence]
• China is Key to N.Korea
  Jack Pritchard
  China has always been key to resolving the North Korean nuclear problem, but now it is absolutely essential that Beijing lives up to its commitments or faces being held accountable for a lost opportunity that could result in a permanent nuclear North Korea. Jack Pritchard Conventional wisdom has long (and incorrectly) held that if China simply applied pressure on North Korea, Pyongyang would be forced to abandon its nuclear weapons programs. Beijing does provide its neighbor with the food, fuel and fertilizer that prevent the Kim Jong-il regime from collapsing, and it is true that if support were cut off, North Korea would find it very difficult to survive in the long term. [China NK] [US NK policy] [Sanctions]
• Airbus May Beat Boeing in China's Aviation Market
  The European aircraft maker seems to hold the long-term edge in China, whose ire over U.S. arms sales to Taiwan won't help Boeing By Bruce Einhorn The last thing Boeing needs now is a new China problem. Over the next two decades, Boeing (BA) expects China to spend $400 billion to purchase 3,770 planes from manufacturers, making China second in size only to the combined market of the U.S. and Canada. With airlines in other markets struggling—and Boeing still trying to recover from its much-delayed Dreamliner 787 project—the U.S. manufacturer could use a Chinese boost. One sign of China's importance: Boeing, the world's second-biggest aircraft manufacturer behind Airbus, is now sending a sales director to Beijing to become the company's first China-based sales executive. Jim Simon, former head of East Asia sales in Seattle, will arrive in Beijing soon, says company spokesman Yukui Wang. [Arms sales] [Decline]
• U.S.-China Fight over Taiwan Exposes a Perception Gap
  The weapons sale indicates Obama is running out of patience with Beijing, while the Chinese worry about a new U.S. plot to contain China By Wenran Jiang Only a few months ago, U.S.-China relations seemed to be enjoying a honeymoon. President Barack Obama, who visited Beijing and Shanghai in November, had made engagement with China one of his top foreign policy priorities. There was even widespread discussion of a new G2 era, with Washington and Beijing coordinating closely to solve key global problems. But the relationship of the two largest global powers has been constrained by a series of setbacks, ranging from differences over climate change commitments and approaches to Iran's nuclear program to disputes over trade and currency. Last month, the Chinese government reacted angrily to a speech by Secretary of State Hillary Clinton criticizing Internet censorship in China. Now the announcement of $6.4 billion in U.S. arms sales to Taiwan has pushed Beijing to condemn Washington with tougher-than-usual rhetoric and stances. [Arms sales] [China confrontation] [Inversion]
• US in line of fire as China toughens up foreign policy
  • Retaliation threatened after arms sales to Taiwan • Beijing ready to stand alone over Iran sanctions Julian Borger, diplomatic editor The Guardian, Saturday 6 February 2010 China's foreign minister Yang Jiechi during a security policy conference in Munich in 2010. Photograph: Michaela Rehle/Reuters China signalled its intent to pursue a more assertive foreign policy, saying "a fifth of mankind" had a right to be heard, and stating its opposition to the west on a range of issues. The country's foreign minister, Yang Jiechi, threatened retaliation for American arms sales to Taiwan, and made it clear that China was prepared to stand alone among the permanent members of the UN security council in opposing sanctions against Iran. He insisted Iran had not closed the door on negotiations over the export of its uranium, and called for patience and "a more flexible, pragmatic and proactive policy" towards talks with Iran. Speaking at a global security conference in Munich, Yang also rejected western criticism on internet freedoms and China's role at the Copenhagen global warming summit in December. He said it was time for China's voice to be listened to with more respect on the world stage. [Resurgence] [Arms sales] [China confrontation] [Inversion]
• Chinese envoy may visit North early next week
  February 06, 2010 In this file photo, Wang Jiarui, left, shakes hands with North Korean leader Kim Jong-il, right, on Jan. 23, 2009. [YONHAP] A key Chinese Communist Party official is rumored to be headed to North Korea, where he is expected to urge the North to return to the stalled six-party nuclear disarmament talks. Diplomatic sources said yesterday that Wang Jiarui, director of the international liaison department at the Central Committee of the Chinese Communist Party, will visit Pyongyang early next week. [NK China]
• U.S.-China spat would not turn uncontrollable: former premier
  Washington, Feb. 4 (CNA) Washington and Beijing may have given each other a hard time over a host of disputes, including arms sales to Taiwan, the Google controversy and the Dalai Lama, but such spats would not escalate to an uncontrollable, a senior adviser to President Ma Ying-jeou said here Thursday. On the U.S. arms sales to Taiwan, Liu Chao-hsiuan, who is leading a Taiwan delegation to attend the U.S. National Prayer Breakfast (NPB) Feb. 3-5, said there is good news and bad news. The bad news is that the United States and China may get tougher with each other over the arms sales plan, although it still remains to be seen how that would unfold, he said [Arms sales] [Separatism]
• Analysis: Obama-Dalai Lama meeting only option
  By Foster Klug The Associated Press Friday, February 5, 2010; 4:03 AM WASHINGTON -- Just a week after enraging China with an arms sale package for rival Taiwan, President Barack Obama risks more damage to this crucial relationship by agreeing to meet with the Dalai Lama in two weeks. The truth is, he has little choice. Obama already postponed the visit once, angering U.S. lawmakers and human rights groups. As Obama struggles to regain his footing after political setbacks, the last thing he needs is to open himself up to fresh criticism that he is kowtowing to China. [Domestic] [China confrontation] [Separatism]
• Currency Dispute Likely to Further Fray U.S.-China Ties
  By MARK LANDLER Published: February 3, 2010 WASHINGTON — To the growing list of grievances between the United States and China, add one more: the Obama administration is reviving American pressure on China to stop artificially depressing its currency, a policy that fuels its persistent trade gap with the United States. The administration has told Chinese officials that currency policy will be high on its agenda this year for economic talks with China, a senior official said on Wednesday. The White House is also weighing whether to designate China as a country that manipulates its currency, when the Treasury Department issues its semiannual report on foreign currencies in April. [China confrontation] [Currency] [Decline]
• Obama to meet with Dalai Lama in mid-February
  By John Pomfret Thursday, February 4, 2010 The Dalai Lama is scheduled to visit Washington on Feb. 17-18 and, despite China's opposition, is expected to meet President Obama, sources close to the exiled Tibetan leader said Wednesday. [China confrontation] [Separatism]
• Lunar eclipse: US retreat leaves China leading way in race to return to moon
  New age of space exploration beckons, say experts, as Nasa pullout leaves door open for other countries Ian Sample, science correspondent guardian.co.uk, Tuesday 2 February 2010 22.00 GMT , Gansu province. Photograph: AP The Chinese space agency could land its first astronauts on the moon within a decade in a move that would mark the beginning of a new age of lunar exploration, experts said today. The decision by the Obama administration to scrap Nasa's plans to return to the moon leave China well placed to become the second nation to land humans on the lunar surface. "The moon is an obvious target for China and they could be there in 2020," said Ken Pounds, professor of space science at Leicester University. The US president's budget proposal, unveiled on Monday, lacked the funds to sustain Nasa's $81bn Constellation programme, the spaceships and rockets designed to put humans back on the moon by 2020. But the decision to scrap Nasa's plans for a permanent return has left the door open for other countries. [China rising] [Decline] [Space race]
• China's Economy 'Overrated'
  The Chinese economy, which has expanded at a blistering 9.8 percent rate on average a year over the past three decades, is overrated, according to a conservative U.S. think tank. Derek Scissors, a researcher at the Heritage Foundation, is the author of the report issued last week which sets out to debunk 10 "leading myths" about the Chinese economy. [China competition] [China rising]
• China overplays its hand on Taiwan
  Published: February 1 2010 20:23 | Last updated: February 1 2010 20:23 The Chinese government is in a confident mood at the moment. But by threatening to impose sanctions on US businesses that are involved in a $6.4bn arms deal with Taiwan, China is in danger of making a serious and counter-productive mistake. Relations between the US and China are at a very delicate stage. The good feelings generated by US president Barack Obama’s visit to China last November have quickly dissipated. In their place have come a series of disputes: about Google and cybersecurity, about climate change, about currency regimes, about Iran – and now about Taiwan. [China confrontation] [Sanction] [Resurgence]
• Reliance on China for exports worrisome
  February 02, 2010 The rapid growth in exports last month was tied in part to the fledgling economic recovery working its way across the globe. But another trend played a significant role as well: increased consumer spending in China. [Domestic demand] [China demand]
• President Ma welcomes US arms decision
  Publication Date:02/01/2010 Source: United Daily News President Ma Ying-jeou welcomed the Obama administration decision to notify Congress of a proposed US$6.4 billion arms sale to Taiwan and said the move would bolster Taipei’s confidence in dealing with Beijing. [Arms sales] [Straits]
• U.S. still assessing sale of F-16 fighters, submarines to Taiwan
  2010/01/31 21:05:03 Taipei, Jan. 31 (CNA) The government is still negotiating with the United States over the sale of advanced F-16 C/D fighter planes and diesel-electric submarines to Taiwan, Premier Wu Den-yih said Sunday after the two items were left out of an arms package intended for Taiwan. Washington is still evaluating the sale of the two weapons systems coveted by Taipei, Wu said, a day after the U.S. government did not include them in the US$6.4 billion arms package it approved for sale to Taiwan on Friday. The package consists of two Osprey Class mine hunting vessels, 60 UH-60M Black Hawk helicopters, 114 Patriot Advanced Capability-3 missile systems, 12 ATM-84L and RTM-84L Harpoon Block II Telemetry missiles and a range of telecommunications equipment. On whether the price tag of the U.S. package was higher than expected, Wu said the government will calculate the price of each item based on the price list [Arms sales] [Tribute]
• Aerospace sector fears China sanctions
  By Kevin Brown in Singapore, Kathrin Hille in Beijing and Daniel Dombey in Washington Published: January 30 2010 12:45 | Last updated: January 31 2010 19:39 Aerospace executives and the US government reacted with concern on Sunday to a Chinese threat to impose sanctions on American groups involved in a $6.4bn arms deal with Taiwan. Giovanni Bisignani, director-general of the International Air Transport Association, the global airline industry body, called for fresh talks between Beijing and Washington to avert a crisis over the arms package. [Sanctions] [Arms sales] [China confrontation]
• U.S. Arms for Taiwan Send Beijing a Message
  By HELENE COOPER Published: January 31, 2010 WASHINGTON — For the past year, China has adopted an increasingly muscular position toward the United States, berating American officials for the global economic crisis, stage-managing President Obama’s visit to China in November, refusing to back a tougher climate change agreement in Copenhagen and standing fast against American demands for tough new Security Council sanctions against Iran. Now, the Obama administration has started to push back. In announcing an arms sales package to Taiwan worth $6 billion on Friday, the United States leveled a direct strike at the heart of the most sensitive diplomatic issue between the two countries since America affirmed the “one China” policy in 1972. [China confrontation] [Arms sales] [Inversion] [Spin]
• China govt opens cracks in its culture of secrecy
  By TINI TRAN The Associated Press Monday, February 1, 2010; 12:00 AM SHENZHEN, China -- The Chinese businessman battled for years to get cities to reveal their budgets, but his quest seemed quixotic in a country notorious for keeping citizens in the dark. Then China did what would once have been unthinkable - it enacted an open-government policy, and last fall Wu Junliang pressed his case with the Guangzhou city government. This time, to his surprise, he won - big time. The largest city in southern China put budget plans for all 114 municipal departments and agencies online. Astonished citizens flooded the Web site to download documents, causing it to crash by the second day. It was an eye-opening moment, illustrating the potential of the fledgling Open Government Information regulation to allow Chinese citizens to challenge the government's culture of secrecy. "We were all very excited. It's the first time in 60 years (sic) in this country that a city government has released their budget. And more significantly, they put it online so everyone can access it," said Wu, 51.
• China threatens sanctions over arms sale to Taiwan
  Angered by a $6 billion U.S. arms sale to Taiwan, Beijing puts security exchanges with U.S. on hold and threatens sanctions against U.S. firms selling to Taipei. The Chinese government Saturday announced a series of harsh retaliatory measures in protest of the Pentagon's $6-billion arms sale to Taiwan, including a suspension of security exchanges and threatened sanctions on U.S. companies selling to Taiwan. "The U.S. decision seriously endangers China's national security and harms China's core interests," the Defense Ministry said in a statement attributed to spokesman Huang Xueping. Denunciations from Beijing over arms sales to Taiwan have an element of ritual about them, but the threat of sanctions on U.S. arms contractors is a new one. It remains to be seen whether China will follow through, given its need for commercial aircraft and aviation systems. [Arms sales] [Separatism] [Sanctions] [China confrontation]
• Arms sale causes severe damage to overall China-U.S. cooperation
  http://news.xinhuanet.com/english2010/china/2010-01/30/c_13157364.htm English.news.cn 2010-01-30 23:35:04 FeedbackPrintRSS WASHINGTON, Jan. 30 (Xinhua) -- Ignoring repeated solemn representations made by China, the U.S. government on Friday notified Congress of its nearly 6.4 billion-U.S.-dollar arms sale package to Taiwan. The sale is a wrong decision, which not only undermines China's national security interests and her national unification cause, but also once again hurts the national feelings of the Chinese people. Moreover, it also will cause serious damage to the overall cooperation and relationship between China and the United States. [Arms sales] [China confrontation]
• U.S. Deal With Taiwan Has China Retaliating
  January 31, 2010 By KEITH BRADSHER HONG KONG — The Chinese government announced late Saturday an unusually broad series of retaliatory measures in response to the latest United States arms sales to Taiwan, including sanctions against American companies that supply the weapon systems for the arms sales. The Foreign Ministry announced in a pair of statements from Beijing that some military exchange programs between the United States and China would be canceled in addition to the commercial sanctions. Furthermore, a vice foreign minister, He Yafei, has called in Jon M. Huntsman Jr., the United States ambassador to China, to protest the sales. The American decision to sell more weapons to Taiwan “constitutes a gross intervention into China’s internal affairs, seriously endangers China’s national security and harms China’s peaceful reunification efforts,” Mr. He said in the ministry’s statement. [Arms sales] [China confrontation]
• China Leading Global Race to Make Clean Energy
  January 31, 2010 By KEITH BRADSHER TIANJIN, China — China vaulted past competitors in Denmark, Germany, Spain and the United States last year to become the world’s largest maker of wind turbines, and is poised to expand even further this year. China has also leapfrogged the West in the last two years to emerge as the world’s largest manufacturer of solar panels. And the country is pushing equally hard to build nuclear reactors and the most efficient types of coal power plants. These efforts to dominate renewable energy technologies raise the prospect that the West may someday trade its dependence on oil from the Mideast for a reliance on solar panels, wind turbines and other gear manufactured in China. “Most of the energy equipment will carry a brass plate, ‘Made in China,’ ” said K. K. Chan, the chief executive of Nature Elements Capital, a private equity fund in Beijing that focuses on renewable energy. President Obama, in his State of the Union speech last week, sounded an alarm that the United States was falling behind other countries, especially China, on energy. “I do not accept a future where the jobs and industries of tomorrow take root beyond our borders — and I know you don’t either,” he told Congress.
  In the United States, power companies frequently face a choice between buying renewable energy equipment or continuing to operate fossil-fuel-fired power plants that have already been built and paid for. In China, power companies have to buy lots of new equipment anyway, and alternative energy, particularly wind and nuclear, is increasingly priced competitively. [China rising] [Green] [Decline] [Leapfrogging]
• China's strident tone raises concerns among Western governments, analysts
  By John Pomfret Washington Post Staff Writer Sunday, January 31, 2010 China's indignant reaction to the announcement of U.S. plans to sell weapons to Taiwan appears to be in keeping with a new triumphalist attitude (sic) from Beijing that is worrying governments and analysts across the globe. [Arms sales] [China confrontation] [Resurgence]

• Taiwanese petrochemicals need China trade pact to survive
  2010.01.30 16:59:19 About a year ago, the Taiwan Synthetic Resins Manufacturers Association (TSRMA) held a press conference for the first time in 20 years to ask the government to save the local petrochemical industry from "a life or death situation." TSRMA Chairman F.Y. Hong described at the time Taiwan's export-oriented industries as being "hospitalized in intensive care" and said that without government rescue, the industries would "end up in the mortuary." In a move to support a proposed economic cooperation framework agreement (ECFA) with China, Hong said that if Taiwan's petrochemical industry does not receive zero-tariff treatment under the trade pact, it will not be able to survive. One year later, after petrochemicals were included on the ECFA early harvest list, Hong still has concerns about the progress of signing the trade deal. "If Korea and Japan -- Taiwan's two biggest competitors -- sign free trade agreements with China ahead of us, China will no longer need to place their orders in Taiwan, so there will be no room for us to survive," Hong said in a recent interview. [FTA]
• Taiwanese products lose market share in China in 2009: MOEA
  2010.01.30 16:02:44 Taipei, Jan. 30 (CNA) Though Taiwan remained China's third largest source of imports in 2009, its share declined as Chinese purchases of Taiwanese goods contracted dramatically, the Ministry of Economic Affairs (MOEA) reported Saturday. The MOEA, citing data from Chinese customs, said that Taiwanese products accounted for 8.5 percent of Chinese imports in 2009, down from 9.1 percent in 2008.
  With bilateral trade between China and South Korea getting stronger, once the two reach a free trade agreement, Taiwanese exports to China will face an even tougher challenge, the bureau said. It argued that the proposed economic cooperation framework agreement (ECFA) with China should be signed as early as possible to maintain the competitive edge of Taiwanese products. [FTA]
• China: Where Retail Dinosaurs Are Thriving
  As shoppers go upscale, sales are booming for mainland department stores By Bruce Einhorn and Wing-Gar Cheng Retailers in the U.S. have wistfully packed Santa off to the North Pole, but the holiday season is just beginning for Chinese department-store chain PCD. In the runup to Chinese New Year on Feb. 14, PCD is prospering: A December sale attracted so many customers that Beijing police had to step in to control traffic. "The love affair of the Chinese consumer with luxury products is growing," says PCD Chairman Alfred Chan. [Domestic demand]
• U.S. Approval of Taiwan Arms Sales Angers China
  By HELENE COOPER Published: January 29, 2010 WASHINGTON — The Obama administration has approved an arms sales package to Taiwan worth more than $6 billion, a move that has enraged China and may complicate President Obama’s effort to enlist Beijing’s cooperation on Iran. [Arms sales] [Separatism] [China confrontation]
• ECFA will be milestone in cross-strait economic exchanges: Ma
  2010.01.28 16:58:37 Tegucigalpa, Honduras, Jan. 27 (CNA) President Ma Ying-jeou said Wednesday the proposed economic cooperation framework agreement (ECFA) between Taiwan and China will be as a milestone in cross-Taiwan Strait trade and economic exchanges. In a meeting with the press here, Ma said that the trade pact with China will be a significant aspect of systematic cross-strait exchanges, and will cover areas ranging from trade service to investment and intellectual property rights protection.
  The government's efforts to establish institutionalized trade exchange mechanisms with China are aimed at preventing Taiwan's marginalization in the world market and clearing the way for free trade agreements with other countries, " he said. "We also hope the ECFA will help local enterprises to maintain their operations in Taiwan and attract greater foreign investment to the country, " he added. [FTA]
• Korea Braces for 'China Shock'
  By Cho Jin-seo Staff Reporter Economists used to say that when the United States sneezes, South Korea catches a cold. Now, the same metaphor is being used to refer to the economic relationship between Korea and China. Policymakers and investors are increasingly worried that a possible slowdown of the Chinese economy this year could cause a snowball effect and hinder Korea's recovery from the financial crisis.
• The PLA at home and abroad: assessing the operational capabilities of China’s military
  Mr. Daniel Alderman Bridge Award Fellow The National Bureau of Asian Research • Signs are emerging that the PLA is becoming more confident about its position vis-à-vis Taiwan. At the same time, China believes that a changing international environment requires the Chinese armed forces to have more diversified capabilities. It is therefore placing relatively more emphasis on developing operational capabilities for missions other than against Taiwan (e.g., humanitarian assistance, peacekeeping operations, disaster relief, antipiracy, etc.). • The implementation of Hu Jintao’s “New Historic Missions” also affords the PLA the opportunity to make gains in some of its traditionally weaker areas, including logistics improvement, defense industry reform, and the implementation of combined and eventually joint operations. • Through its 2009 Gulf of Aden antipiracy mission, the PLA Navy has shown that it is capable of undertaking certain types of operations abroad. [Military] [Straits]
• China Becoming Superpower in Scientific Research
  China is on its way to becoming a global leader in scientific research. The country has made remarkable progress in scientific research over the last three decades, and is likely to displace the U.S. as the world's leading producer of scientific knowledge in terms of volume by 2020, the Financial Times reported on Tuesday [China rising] [Decline] [S&T]
• China set for global lead in scientific research
  By Clive Cookson in London Published: January 26 2010 02:00 | Last updated: January 26 2010 02:00 China has experienced the strongest growth in scientific research over the past three decades of any country, according to figures compiled for the Financial Times, and the pace shows no sign of slowing. Jonathan Adams, re-search evaluation director at Thomson Reuters, said China's "awe-inspiring" growth meant it was now the second-largest producer of scientific knowledge and was on course to overtake the US by 2020 if it continued on its trajectory. [China rising] [Decline] [S&T]
• Athens invites Beijing to buy bonds
  By Kerin Hope in Athens and Jamil Anderlini in Beijing Published: January 26 2010 22:59 | Last updated: January 26 2010 22:59 China’s foreign exchange reserves grew $130bn in the last quarter of 2009 alone Greece is wooing China to buy up to €25bn of government bonds, a move that underlines Beijing’s growing financial power, as Athens struggles to fund soaring public debt . Goldman Sachs, the US investment bank, has been promoting a Greek bond sale to Beijing and the State Administration of Foreign Exchange (Safe), which manages China’s $2,400bn foreign exchange reserves, said people familiar with the issue. [China rising]
• Web censorship in China? Not a problem, says Bill Gates
  Microsoft founder plays down Beijing's attempts to stifle dissent on the internet as 'very limited' Bobbie Johnson in San Francisco and Tania Branigan in Beijing guardian.co.uk, Monday 25 January 2010 22.39 GMT Article history After pouring billions of dollars into the global fight against malaria and rebranding Microsoft in a more cuddly, human way, Bill Gates had just about shaken off accusations that he represented all that was unappealing about aggressive American capitalism. But today his reinvention suffered something of a setback when he played down China's attempts to stifle dissent on the internet as "very limited". Less than two weeks after Google said it planned to uncensor its Chinese search engine in protest at attempts to break into the email accounts of human rights activists, Gates criticised his rival's decision and insisted that agreeing to Beijing's demands was just part of doing business in the country. "You've got to decide: do you want to obey the laws of the countries you're in or not? If not, you may not end up doing business there," he told ABC's Good Morning America programme. He also brushed aside accusations that Microsoft has been complicit in helping filter the web by saying that it was not an issue because any censorship could be circumvented with technical knowledge. "Chinese efforts to censor the internet have been very limited," he said. "It's easy to go around it, so I think keeping the internet thriving there is very important." [Cyberwar] [Softwar]
• First round of ECFA talks to begin January 26
  Kao Koong-lian, vice chairman and secretary-general of the Straits Exchange Foundation, said Jan. 25 on his way to Beijing, that the first round of negotiations on a cross-strait ECFA will not touch on substantive matters, nor will it discuss the contents of an "early harvest list." (CNA)Publication Date:01/25/2010 Source: United Daily News The first round of negotiations on a cross-strait economic cooperation framework agreement is scheduled to take place at the Diaoyutai Hotel in Beijing Jan. 26, it has been announced. Taiwan’s Straits Exchange Foundation together with its mainland counterpart, the Association for Relations Across the Taiwan Strait, made the announcement in the morning of Jan. 24. [Straits] [FTA]
• Aging Population May Yet Halt China's Rise
  Kang Kyung-hee An interesting article on the BBC website described a Chinese kindergarten class with a boy-to-girl ratio of 4:1. China's gender imbalance is becoming a serious problem; in one small village all of the single women have left in search of work, leaving only aging bachelors behind. A study says that by 2020, nearly 30 million Chinese bachelors will have trouble finding a mate.
  According to experts, the likely ramifications of the aging population are beyond imagination. Demographer Paul Wallace refers to an "agequake," saying that it will cause a seismic shift in the global economy. Thus some experts in the West say it is overly optimistic to believe that China, with its aging population and much less time than developed nations to prepare for it, will have had its time in Asia and the world by 2020 and 2030. The same warning goes for Korea as well. Preparations have been too few, and the agequake is coming too soon. [Ageing society]
• China makes foray into Mauritius
  By James Lamont in New Delhi Published: January 25 2010 03:11 | Last updated: January 25 2010 03:11 China’s state-led approach to foreign investment is muscling India aside in its traditional “backyard” by investing $700m in a special economic zone in the Indian Ocean island of Mauritius to service Beijing's expansion in Africa. Ramakrishna Sithanen, the vice prime minister of Mauritius and minister of finance, said China was “extremely aggressively” pursuing its objectives in Africa via Mauritius with a wave of strategic investments on the island. He said China’s “different approach”, which forcefully combined business and government interests, was in contrast to India’s more fragmented style that had less backing from the state. [ODI] [China India competition]
• Campaign to boost cycling in Beijing
  • Measures fail to ease capital's car-choked roads • Planners want city to be haven for cyclists Jonathan Watts, Asia environment correspondent guardian.co.uk, Sunday 24 January 2010 18.04 GMT Article history After wrestling for years with Beijing's appalling traffic and pollution problems, city planners have come up with a distinctly old-fashioned solution: bicycles. Municipal officials want to boost the number of cyclists by 25% during the next five-year plan, state media reported today. Twenty years ago, four out of five residents in the Chinese capital pedalled to work through one of the world's best systems of bicycle lanes. But the modern passion for cars has made two-wheeled transport so treacherous, dirty and unfashionable that barely a fifth of the population dares to use lanes that are now routinely blocked by parked cars and invaded by vehicles attempting to escape from the jams on the main roads. Last year, China overtook the United States to become the world's biggest car market. Increasing affluence brings about a million new vehicles on to the roads every month, choking the streets with traffic and the air with smog. The capital is among the worst affected cities. Since the 2008 Olympics, car owners have been ordered not to drive on certain days each week, but these controls have failed to ease congestion, so the authorities are considering additional measures. According to the Xinhua news agency, the government hopes to improve the infrastructure for cyclists, including restored bicycle lanes and new rental programmes providing 50,000 bikes for hire by 2015. The authorities plan more bike parks near bus and subway stations in the expectation that half the city's residents will travel to work by public transport in five years.[Green]
• China’s response to the global financial crisis
  January 24th, 2010 Author: Yu Yongdiing, CASS, Beijing Undoubtedly the most important impact of the global financial crisis (GFC) on the Chinese economy came from the fall in global demand, reflecting China’s extremely high export dependency. China’s export to GDP ratio in 2007 was 35 per cent. Compared with a growth rate of 25 per cent in September, exports shrank by 2.2 per cent in November. This fall in exports may have cut GDP growth by 3 per cent. If its indirect impact is included, it may have shaved more than 5 per cent off China’s 2008 growth rate. [Crisis]
• China’s influence on markets is growing
  By Jennifer Hughes in London and Robert Cookson in Hong Kong Published: January 22 2010 18:54 | Last updated: January 22 2010 18:54 Until Us president Barack Obama launched his banking bombshell on Thursday, this week had been largely about China for the markets. From fears about the effect of domestic bank lending curbs to the unexpectedly strong growth rate it reported, news and views on the world’s third-largest economy were very much to the fore. Strategists used to claim that if the US economy sneezed, markets in the rest of the world caught a cold. A Chinese economic sniffle is now having almost the same impact. The question for investors is whether this stems from its rapidly expanding economy and global clout, or whether it is a market fad that will end. [Decline] [China rising]
• China closes on Japan as growth accelerates
  By Geoff Dyer and Jamil Anderlini in Beijing Published: January 21 2010 03:08 | Last updated: January 21 2010 19:31 China comfortably beat its target of 8 per cent economic growth last year and came close to overtaking a stagnant Japan as the second-biggest economy in the world, even as signs emerged on Thursday that inflationary pressures are building. The economy accelerated in the fourth quarter to expand by 10.7 per cent and grew by 8.7 per cent in 2009, in spite of the biggest global economic crisis in generations. [China rising] [Realignment]
• Economies in China, India recovering faster than those in Western nations
  By Frank Ahrens Washington Post Staff Writer Friday, January 22, 2010 The giant and emerging economies of China and India appear to be lurching toward recovery faster than their more developed Western counterparts, including the United States, although the recovery is not without potential pitfalls. Beijing said Thursday that China's fourth-quarter gross domestic product (GDP) shot up a breathtaking 10.7 percent, well surpassing expectations and marking its fastest quarter of growth since 2007. In India on Thursday, government officials said that fourth-quarter GDP is expected to decline slightly from the previous quarter but that even with the pullback, the nation's GDP will expand by at least 6 percent, which is more than twice what is expected in the United States. That follows a forecast Wednesday from the World Bank that India's economy will grow at a 7.5 percent clip this year and China's at a 9 percent rate. [China rising] [Realignment]
• U.S.-China Military Tensions Grow
  By Rick Rozoff Global Research, January 20, 2010 Even though the U.S. military budget is almost ten times that of China's (with a population more than four times as large) and Washington plans a record $708 billion defense budget for next year compared to Russia spending less than $40 billion last year for the same, China and Russia are portrayed as threats to the U.S. and its allies. China has no troops outside its borders; Russia has a small handful in its former territories in Abkhazia, Armenia, South Ossetia and Transdniester. The U.S. has hundreds of thousands of troops stationed in six continents. While Gates was in charge of the wars in Afghanistan and Iraq and responsible for almost half of international military spending he was offended that the world's most populous nation might desire to "deny others countries the ability to threaten it." [China confrontation] [US military]
• Book on China’s Soft Power Released
  By Lee Tae-hoon Staff Reporter China has begun to recognize the strategic importance of "soft power" due to the nation's growing need to improve its image abroad, according to a book released by the National Assembly Library, Monday. The book, titled "China's Soft Power at a Glance," provides an overall picture of China's political and diplomatic influence in the international community. In politics, soft power refers to a country's ability to influence other nations in a non-coercive manner in order to obtain the outcomes that it wants. The publication outlines the emergence of China's soft power, along with its international humanitarian efforts, culture industry, and the Beijing Consensus, its economic development model. [Softpower] [China rising]
• President promotes Taiwan as world's product test market
  2010.01.18 17:44:08 Taipei, Jan. 18 (CNA) President Ma Ying-jeou promoted Taiwan as a "test market" for the world's new products, at an economic forum Monday in Taipei, and vowed to achieve an economic "recovery with Taiwanese characteristics." "Taiwan is able to quickly turn lab results (from the United States and Europe) into new products for (Asian) markets," he said in his opening remarks.
• Hatoyama to Nanjing, Hu to Hiroshima? The New Face of China-Japan Relations
  Kosuke Takahashi TOKYO - With the world economy's center of gravity shifting from the West to the East, led by China's rising economic and corresponding political power, the year 2010 may witness a series of epoch-making events in Asia. A grand rapprochement between Japan and China could be one such happening. The idea has recently been floated through the media by anonymous diplomatic sources in Tokyo and Beijing, attracting attention among experts worldwide. The French newspaper Le Figaro reported from Tokyo on January 6 that the Chinese Communist Party (CCP) had delivered to the ruling Democratic Party of Japan (DPJ) the script of a spectacular reconciliation this year between the two countries. The report said that China had proposed that Japanese Prime Minister Hatoyama Yukio begin the process by going to Nanjing, where a mass killing of Chinese civilians by the Japanese Imperial Army took place in December 1937 and subsequently. This first visit to Nanjing by a Japanese prime minister since the war would present to the Chinese people Tokyo's official apologies without ambiguity, easing lingering anti-Japanese sentiment among the Chinese public that many associate with unresolved conflicts over the war that ended more than six decades ago. In return, some months later, on August 15, the anniversary of the Japanese surrender in 1945, Chinese President Hu Jintao would go to Hiroshima, the first city to experience atomic bombing, and declare the three non-nuclear principles: China will not make a nuclear first strike, will not attack any non-nuclear country and will not export nuclear arms. The French paper named as its source only "our information". [Japan China relations] [Realignment]
• Chinese Internet search firm Baidu looks forward to life after Google
  By Steven Mufson Washington Post Staff Writer Monday, January 18, 2010 BEIJING -- In 2000, a 31-year-old software engineer named Li Yanhong, a.k.a. Robin Li, left his job in Silicon Valley and returned home to China to start an Internet search engine. He raised $26.2 million in venture capital, including a modest investment by Google. Ten years later, Li's company, Baidu, has become the dominant search engine in China, a goliath with 7,000 employees and a market value of $16.2 billion on the Nasdaq Stock Market. Google, which sold its stake in 2006 when it launched its own Chinese site, has lagged far behind, capturing less than half of the market share Baidu has here.
• Silicon Valley questions Google stance
  By Richard Waters and Joseph Menn in San Francisco Published: January 15 2010 19:19 | Last updated: January 15 2010 19:19 Google asked its workers this week not to pour their feelings onto Twitter about its declaration that it would end its compliance with Chinese censors. But it could do little to stem the wave of support that welled up among Silicon Valley’s rank-and-file. Google isn’t above reproach. But their bold China stance is why I feel lucky and proud to have worked there,” Chris Sacca, who once headed Google’s mobile efforts, broadcast to his 1.3m followers on Twitter. However, that popular groundswell of support has run into a pragmatism that has left the company looking isolated even in its own northern Californian back yard.
• How to Think About China
  Immanuel Wallerstein Commentary No. 273, Jan. 15, 2010 If one asks throughout the world the question, what do you think of the United States as a country and a world power, you will get very clear answers. Everyone has an opinion - North and South, rich and poor, men and women, politically on the right or the left, young and old. The opinions vary enormously from extremely favorable to extremely hostile. But people do feel they know how to think about the United States. Thirty years ago, the same was probably true about China. But it is no longer true. Many people, perhaps even most people, around the world are no longer sure what they think about China as a country or as a world power. Indeed, it is a subject not only of uncertainty but of sharp debate. It is useful perhaps to review which issues people outside of China tend to debate when they discuss China. There are three principal ones. [Socialism] [Imperialism]
• China's BYD Aims to Be World's Biggest Carmaker by 2025
  The e6 Chinese electric carmaker BYD on Tuesday announced an ambitious plan at the North American International Auto Show to become China's top automaker by 2015 and the world no.1 by 2025. As its first step of the plan, it will launch an electric car in the U.S. this year, BYD chairman Wang Chuanfu said. [Auto] [Green] [China rising]
• Google to end censorship on China site
  By Richard Waters, Chris Nuttall and Joseph Menn in San Francisco Published: January 13 2010 00:13 | Last updated: January 13 2010 03:31 Google has said it will end the controversial censorship of its search service in China and risk being thrown out of the world’s most populous internet market, following what it claimed were Chinese-based attempts to hack into its systems and those of other international companies. It also said it had found evidence of attempts to break into its Gmail system, with partial success in two cases, and many other attempts to trick “dozens” of human rights activists around the world in order to access to their email. The dramatic gesture, which Google discussed with the US government beforehand, marks a new low in the deteriorating cyber-relations between China and the rest of the world, following a spate of online attacks and efforts to tighten web censorship. US intelligence officials believe hackers supported by the Chinese government have been behind major breaches at US defence contractors, who have in some cases been targeted using the same previous unknown software vulnerabilities as trick emails sent to Chinese dissidents. [Cyberwar]
• East meets west as 1602 Chinese map goes on show in the US
  Rare rice paper chart that first detailed five continents for emperor Buzz up! Digg it Alexandra Topping The Guardian, Wednesday 13 January 2010 Article history The map will eventually reside in the Bell Library at the University of Minnesota. Photograph: Jacquelyn Martin/AP An extremely rare 400-year-old Chinese map, which put the emerging superpower at the centre of the world, went on display yesterday at the Library of Congress in Washington. Inspiring delight and reverence from the world's leading cartographers, it is the first Chinese map to combine both eastern and western cartography and show the Americas. The document, which became the second most expensive rare map ever sold when it was bought for $1m by the James Ford Bell Trust in October, is the work of Matteo Ricci, an Italian Jesuit missionary from Italy
• China surpasses Korea in orders for new ships
  January 13, 2010 Korean shipbuilders were outpaced by their Chinese rivals in the number of new orders received last year as well as in order backlogs, a London-based market researcher said yesterday. Korean shipbuilders such as Hyundai Heavy Industries Co. and Samsung Heavy Industries Co. won a combined 3.15 million compensated gross tons (CGTs) in new orders last year, accounting for 40.1 percent of all new global orders, said Clarkson Plc. New orders at Chinese shipyards totaled 3.49 million CGTs during the cited period, accounting for 44.4 percent of the total, Clarkson said. [China competition]
• No fail-safe recipe for doing business in China
  By PATRICK CREWDSON - The Dominion Post Last updated 05:00 13/01/2010SharePrint Text Size Golden Zespri Oscars DIGITAL CAMPAIGN: the Golden Zespri Oscars solicited consumers' votes on a series of animated parodies of films, including Titanic, Slumdog Millionaire, Rambo, Bruce Lee's Fist of Fury, and several popular Chinese films.Relevant offersThe lure of 1.3 billion Chinese consumers is irresistible to many Kiwi companies, all the more so since New Zealand and China signed a free trade pact. Patrick Crewdson visited Shanghai to assess the impact of the pact on businesses trying to crack the world's most enticing market. Goodwill. Ask a Kiwi business person operating in China what we have gained 15 months and two rounds of tariff reductions since the New Zealand-China Free Trade Agreement (FTA) came into effect, and that is what they are most likely to cite.
• U.S.-China Conflict Tops List of Global Risks for 2010
  U.S.-China relations topped a list released by consulting firm Eurasia Group of the top 10 risks facing the world in 2010. The company said that the summit between U.S. President Barack Obama and Chinese President Hu Jintao last November will be remembered as the peak of relations between the two countries, suggesting that the two countries' good ties will deteriorate in 2010. The report said that the bone of contention is China's global leadership. The U.S. is looking for a greater Chinese role on the international stage, which matches the country's rapid economic growth. But China is avoiding taking responsibilities in international affairs.(sic) [China confrontation] [China rising]
• China Tests Missile-Interception Technology
  China says it has successfully tested military technology designed to intercept a missile in mid-air. China made the announcement Tuesday, saying the test was defensive in nature and not aimed at any country. State media said the test "achieved the expected objective," but did not elaborate. The announcement follows Washington's decision last week to clear the sale of advanced U.S. Patriot air defense missiles to Taiwan as part of a larger $6.5 billion arms deal. [Missile defense] [Arms sales] [Straits]
• As China Rises, Fears Grow on Whether Boom Can Endure
  By MICHAEL WINES Published: January 11, 2010 BEIJING — As much of the world struggles to clamber out of a serious recession, a gradual flow of economic power from West to East has turned into a flood. New high points, it seems, are reached daily. China surged past the United States to become the world’s largest automobile market — in units, if not in dollars, figures released Monday show. It also toppled Germany as the biggest exporter of manufactured goods, according to year-end trade data. World Bank estimates suggest that China — the world’s fifth-largest economy four years ago — will shortly overtake Japan to claim the No. 2 spot. The shift of economic gravity to China has occurred partly because growth here remained robust even as the world’s developed economies suffered the steepest drop in trade and economic output in decades. But that did not happen by chance: China’s decisive government intervention in the economy, combined with the defiant optimism of its companies and consumers, has propelled an economy that until recently had seemed tethered to the health of its major export markets, including the United States. [China rising]
• Taiwan trade body eyes China's domestic demand plan
  2010.01.11 21:30:22 TAITRA chairman eyes China's domestic demand plan Taipei, Jan. 11 (CNA) Taiwan's semi-official trade promotion body hopes to help the country's enterprises develop more commercial opportunities by focusing on China's continuing efforts to expand its domestic demand. "We have been closely observing the future direction of Beijing's economic policies, " said Wang Chih-kang, the chairman of the Taiwan External Trade Development Council (TAITRA). [Domestic demand]
• China banks eclipse US rivals
  By Patrick Jenkins in London Published: January 10 2010 22:32 | Last updated: January 10 2010 22:32 Chinese banks have cemented their position as the most highly valued financial institutions, taking four of the top five slots in a ranking of banks’ share prices as a multiple of their book values. China Merchants Bank, China Citic, ICBC and China Construction Bank lead the table, followed by Itaú Unibanco of Brazil, all with a price-to-book multiple of more than three. 8Over the past six years, the average price-to-book value of the biggest 50 banks has halved from two to one. [China rising]
• China Opposed to Korean Reunification, Says U.S. Expert
  A U.S. expert on inter-Korean affairs claims that China is fundamentally against the reunification of the two Koreas. During a speech entitled "The Cost and Consequences of Korean Unification" delivered in Washington on Wednesday, Peter Beck, a research fellow at Stanford University's Asia Pacific Research Center, said China is against reunification should it stem from a failed North Korea and that its principal policy regarding the Korean Peninsula is stability. This is because China does not want another predicament on its border with the North, like the famine in the mid-1990s that drove thousands of North Korean refugees into Manchuria, Beck said. If either internal or external troubles in Pyongyang trigger a reunification, Beck predicted that Beijing will first seal its border with the North and then establish a buffer zone some 15 to 30 km wide to prevent chaos from crossing into China. However, the scholar said a reunification initiated by a vibrant South Korea will be most welcomed by the U.S. and bolster Korea-U.S. relations. And although China's actions after reunification are difficult to guess, he predicted that if a unified Korea maintained its ties with Washington, China would take an aggressive stance to improve relations with its neighbor. Beck said that Japan is also against reunification of the Korean peninsula since it could raise Korea's potential to become a major regional power. [Unification] [Takeover] [Media] [China NK]
• China overtakes Germany as biggest exporter
  By JOE McDONALD The Associated Press Sunday, January 10, 2010; 1:28 AM BEIJING -- China overtook Germany as the world's biggest exporter after exports rose in December for the first time in 14 months, data showed Sunday, in a new sign of the rapid Chinese rise as a global economic force. Chinese exports in the last month of 2009 jumped 17.7 percent from a year earlier, the state Xinhua News Agency and government television said. That made total exports for the year just over $1.2 trillion, ahead of the 816 billion euros ($1.17 trillion) forecast last month for Germany by that country's foreign trade organization, BGA. [China rising] [Trade]
• The US and China: One Side is Losing, the Other is Winning
  By James Petras Global Research, January 3, 2010 Asian capitalism, notably China and South Korea are competing with the US for global power. Asian global power is driven by dynamic economic growth, while the US pursues a strategy of military-driven empire building.
  One Day's Read of the Financial Times Even a cursory read of a single issue of the Financial Times (December 28, 2009) illustrates the divergent strategies toward empire building. On page one, the lead article on the US is on its expanding military conflicts and its ‘war on terror', entitled “Obama Demands Review of Terror List”. In contrast, there are two page-one articles on China, which describe China's launching of the world's fastest long-distance passenger train service and China's decision to maintain its currency pegged to the US dollar as a mechanism to promote its robust export sector. While Obama turns the US focus on a fourth battle front (Yemen) in the ‘war on terror' (after Iraq, Afghanistan and Pakistan), the Financial Times reports on the same page that a South Korean consortium has won a $20.4 billion dollar contract to develop civilian nuclear power plants for the United Arab Emirates, beating its US and European competitors. [Decline] [Militarisation] [China rising]
• New term to be used to sell China-trade pact to public: President Ma
  2010.01.06 22:27:55 Taipei, Jan. 6 (CNA) President and Kuomintang Chairman Ma Ying-jeou proposed Wednesday that a new and simple term be used by the relevant agencies in communicating with the public about the controversial trade agreement Taiwan hopes to sign with China. The term used so far for the proposed cross-strait economic cooperation framework agreement or "ECFA" is an abbreviation in English of the trade deal. Since the term is just an acronym, it would be too difficult for the mainly Chinese-speaking Taiwanese public to figure out what it is for, and therefore, a new and simple Chinese Term "Liang An Jing Ji Xie Yi" -- which means cross-strait economic agreement -- could be used to sell the trade deal with China, Ma said at the weekly meeting of the ruling Kuomintang's Central Standing Committee. [FTA] [Straits]
• Signs Point to Kim Jong-il Trip to China
  Effective midnight on Tuesday, special security is being imposed in Dandong, on the Chinese border with North Korea, Free North Korea Radio reported Monday. The security upgrade is seen as heralding a long-expected visit to China by North Korean leader Kim Jong-il. [China NK]
• Taipei 101 to become world's tallest green building next year
  2010.01.04 21:41:26 Taipei 101 to become world's tallest green building Taipei, Jan. 4 (CNA) Taipei 101, having officially yielded its status as the world's tallest building to Burj Dubai, now is aspiring to become the world's tallest green building, a spokesman for the company managing the skyscraper said Monday. The 818-meter high Dubai skyscraper, which stands 310 meters higher than Taipei 101, was officially inaugurated Monday, dislodging the Taipei building from its previous lofty status. Taipei Financial Center Corp. spokesman Michael Liu said his company has turned its attention to establishing the building's green credentials and applied for green building certification based on the United States' LEED standard in October 2009. [Green]
• Chewy, aromatic new rice developed, named
  2010.01.03 18:43:27 New chewy, aromatic rice named Taichung No. 194 Taipei, Jan. 3 (CNA) A new rice variety that has good taste, texture and aroma has recently been developed and named, ready for application for intellectual property rights and distribution to farmers, the Council of Agriculture (COA) said Sunday. The new grain, Taichung No. 194, was devised by Hsu Chih-sheng with a COA research farm in central Taiwan after 13 years of genetic engineering and modification, said Chen Jung-wu, director of the Taichung District Agricultural Research and Extension Station. [Services] [IPR]
• For Shanghai Fair, Famous Fund-Raiser Delivers
  By MARK LANDLER and DAVID BARBOZA Published: January 2, 2010 WASHINGTON — In the hectic last week before she became secretary of state, Hillary Rodham Clinton squeezed in a Bon Jovi benefit concert in New York, part of a frantic effort to pay off the debt from her presidential campaign. No sooner had she arrived at the State Department than Mrs. Clinton discovered she needed to start raising money all over again. This time, the cash-starved beneficiary was not her own campaign but the United States, which needed $61 million to finance the construction of a national pavilion at a world’s fair in Shanghai. Under federal law, no public money could be used for the project.
  The prospect of the nation’s chief diplomat asking for money worried government lawyers, according to officials. Referring to the first secretary of state, one lawyer asked, “Would Thomas Jefferson do this?” They imposed strict limits on the kinds of calls or other contacts she could make, allowing her to promote the pavilion but prohibiting any one-on-one appeals for cash. Despite those restrictions, and a dismal economy, Mrs. Clinton is closing in on her $61 million goal. She is clearly proud of the effort, which staved off what could have been a rupture in American-Chinese relations. [Incompetence] [Decline] [Guanxi]
• U.S.-China relations to face strains, experts say
  By John Pomfret Washington Post Staff Writer Sunday, January 3, 2010 The United States and China are headed for a rough patch in the early months of the new year as the White House appears set to sell a package of weapons to Taiwan and as President Obama plans to meet the Dalai Lama, U.S. officials and analysts said. The Obama administration is expected to approve the sale of several billion dollars in Black Hawk helicopters and anti-missile batteries to Taiwan early this year, possibly accompanied by a plan gauging design and manufacturing capacity for diesel-powered submarines for the island, which China claims as its territory. The president is also preparing to meet the spiritual leader of Tibet, who is considered a separatist by Beijing. Obama made headlines last year when the White House, in an effort to generate goodwill from China, declined to meet the Dalai Lama, marking the first time in more than a decade that a U.S. president did not meet the religious leader during his occasional visits to Washington. [China confrontation] [Arms sales] [Separatism] [Decline] [Agency] [Domestic]
• Is China Poised for a Leap Like Korea in 1988?
  China's consumer market is now very similar to Korea's when Seoul hosted the Olympic Games in 1988, China experts say. The two are markedly similar in terms of income level, savings rate, urbanization, and the number of cars per head. Based on Korea's experience of a sudden explosion of the consumer market after 1988, China is expected to see similar drastic changes [Domestic demand]
• China Likely to Be World's Top Exporter in 2009
  China is believed to have emerged as the world's largest exporter and outpaced Japan as the world's second-largest economy this year, the Hong Kong Economic Times reported on Monday. China's Vice Commerce Minister Zhong Shan said at an economic forum on Sunday that China has probably replaced Germany as the world's largest exporting country in 2009.
• China Outpaces U.S. in Consumption of Cars, Appliances
  China has become the world's biggest market for consumer goods including automobiles, home appliances and computers, overtaking the United States. Citing a forecast by market researcher J.D. Power and Chinese government data, The New York Times reported on Thursday that auto sales in China are projected at 12.8 million units this year, soaring ahead of the U.S.' 10.3 million units for the first time. China is also expected to notch up home appliance sales with 185 million units compared to 137 million units in the U.S. [Domestic demand]
• Chinese banks find their credit in high demand
  By Ariana Eunjung Cha Washington Post Foreign Service Saturday, January 2, 2010 BEIJING -- China's state-owned banks have become a main engine of the global recovery, financing the construction of copper mines, purchase of airplanes, expansion of retail stores and other projects even as their U.S. and European counterparts scale back lending. The surge in Chinese lending, triple the 2008 rate, has provided a lifeline to international corporations during the worst recession in decades, and it reflects a diversification in China's global economic role beyond its holdings of vast amounts of U.S. government debt. [China rising] [Finance]
• U.S. business group accuses Obama of shorting Taiwan
  By Jim Wolf Reuters Friday, January 1, 2010; 4:19 PM WASHINGTON (Reuters) - The head of a prominent U.S. business group accused President Barack Obama of compromising Taiwan's security to promote U.S. ties with China. Self-ruled Taiwan, which China deems a wayward province, is watching "with increased exasperation," said Rupert Hammond-Chambers, president of the U.S.-Taiwan Business Council. The council's board chairman is Paul Wolfowitz, a former World Bank president and former U.S. deputy secretary of defense. The group long has advocated arms sales to Taipei, including meeting its wish to buy 66 advanced Lockheed Martin F-16C/D fighter jets to update its F-16 fleet. The council represents scores of companies doing business with Taiwan, including Lockheed Martin, the Pentagon's No. 1 supplier by sales; Boeing Co; and Raytheon Co. China strongly opposes all U.S. arms sales to Taiwan. [Arms sales]
• Don't Overlook India's Consumer Market for China's
  Urban consumers in India will likely drive more global business than their Chinese counterparts while India's rural development far outpaces China's By John Lee The scale of China's potential consumer market has always fascinated Western companies. Back in 19th-century England, spinning-mill owners were convinced they would reap big profits if they could just get everyone in China to wear one coat-tail or buy one handkerchief. More recently, U.S. and Japanese companies have made similar arguments. For multinationals hoping to gain from China's teeming mass of consumers, though, the country continues to disappoint. Since the global fall in exports, Beijing has been building its way out of an economic slump. Roads, ports, railways: Name anything big and China is likely to be building it. Chinese consumers haven't yet played much of a role in driving the economy's recovery. As a percentage of gross domestic product, Chinese consumption is the lowest of any major economy in the world, at less than one third. In fact, almost all of China's impressive economic growth this year has come from infrastructure spending, as well as investment speculation in assets such as property. Instead, it is India that could provide the greater pot of treasure at the end of the rainbow for multinationals targeting Asian consumers [Domestic demand] [China India comparison]