3rd of August 2010

The Lion Awakes 

News at a Glance

今天的中国新闻

A compilation of Headlines + Brief Summary from Chinese & International Publications relating to China.

Just 5 Minutes each day to be up-to-date on the News of China

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China News Archive

From 2008

China Daily

Treasuries lack safety, liquidity for China, Yu says

US Treasuries fail to provide safety or liquidity when it comes to managing China's $2.45 trillion foreign-exchange reserves, said Yu Yongding, a former central bank adviser.

"I do not think treasuries are safe in the medium- and long-run," Yu, a member of the State-backed Chinese Academy of Social Sciences, wrote yesterday in an e-mailed response to questions. China is unable to sell the securities in a "big way" and a "scary trajectory" of budget deficits and a growing supply of dollars put their value at risk, he said.

China made two entries on World Heritage List - VIDEO

A number of landscapes in south west of China, collectively known as the Dan Xia Landform, went on the World Heritage List on Monday, according to the United Nations Educational, Scientific and Cultural Organization.

The Dan Xia Landform scatters its natural formed landscapes such as red cliffs, pillars, towers, valleys and waterfalls in six Chinese provinces. These landscapes have helped conserve sub-tropical forests and host many species, of which 400 are considered rare or endangered, according to the UNESCO.

The UNESCO World Heritage Committee Meeting is held until August 3rd. It's considering 39 properties around 33 states to be included in its list. So far, more than two dozens of properties have made to the World Heritage List at the meeting.

Chinese economy 'to fare well'

URUMQI - The Chinese economy is on track to fare well this year if recent natural disasters do not disrupt grain supply and fuel high inflation, said Zhao Xiaoyu, vice-president of the Asian Development Bank (ADB). he global economy is also unlikely to encounter a double dip, he told China Daily in an exclusive interview.

Despite the fall in July in the country's procurement managers' index (PMI), which measures economic expansion, policymakers will introduce new supportive measures if its economic slowdown continues, making it still attractive for foreign investment, analysts said

Debate: Forex Reserves

Are China's huge foreign exchange reserves, most of it in dollars, an advantage against the US? Two experts, a foreigner and a Chinese, present their views.

FM: 'No power shift Eastward'

Editor's note: At a joint news conference with Mexican Secretary of Foreign Affairs Patricia Espinosa in Mexico City on July 30, China's Foreign Minister Yang Jiechi was asked whether he agreed with the view that world power is shifting from the West to the East. The following are excerpts from Yang's take on the matter:

T here has been an argument that the gravity of world power is shifting from the West to the East, but it is a view hard to be subscribed.

The emerging trend in the world today is the gradual evolution of world power towards relative equilibrium. It is an inevitable outcome of the growing move toward multi-polarity and of deepening economic globalization and rapid revolution in science and technology.

First nationwide study on TCM to release in Nov

BEIJING - China has completed its first nationwide study of traditional Chinese medicine (TCM) as it is currently practiced and a report on the findings is expected in November.

"Surveys and data on TCM are insufficient. At present, we do not have comprehensive statistics that reflect the development and features of TCM," said Wang Guoqiang, director of the State Administration of Traditional Chinese Medicine.

Cop on a lonely mission

KUNMING - In the past six years, Li Fengqiang has traveled to more than 16 provinces in China, covering a total distance of more than 30,000 km. And he did it all by himself.

Li is neither an enthusiastic traveler nor a lonely wanderer. He is a policeman from Cangyuan county in Southwest China's Yunnan province.

His mission is simple, but often fraught with difficulties and danger. He has to save people, mostly women and children, who are victims of human trafficking.

Since 2004, when he took the job in the criminal investigation office of Cangyuan county police bureau, the 40-year-old Li has rescued more than 90 people, 25 of whom are natives of Myanmar.

China looks to its underdeveloped west for economic revival

History can sometimes repeat itself, only in different ways.

Ten years ago, facing the threat of a deflation characterized by economic slowdown and slumping prices triggered by the Asian financial crisis, China launched an ambitious "western development strategy" by pumping huge sums of money into its expansive but underdeveloped western area.

And now, noting that the shrinking overseas markets and sluggish domestic consumption are sapping China's economic growth, Beijing is turning to the western territories for revival again, calling on the whole nation to set out for a second phase of the western development strategy.

Beijing seems to be telling the same story about a decade later, but the government is expecting a totally different ending.

"When China started the campaign of developing the western hinterlands 10 years ago, policymakers set their eyes on alleviating poverty in the western area and narrowing down the growth gap between the western area and the coastal area," said Wang Xiaogang, director of the Sichuan Economic Development Research Institute, a local government think tank.

"This time, the central government is aiming at restructuring China's regional economies and realizing a sustained national economic growth based on local markets and domestic consumption."

But Chinese leaders are looking even further ahead this time.

They envision the continuation of the "go west" campaign as a stepping-stone in reestablishing the pivotal place China once held in the world.

Geographic wonder a heritage site

UNESCO named the China Danxia Landform to its World Heritage list Monday, making it the country's 40th property on the United Nations' list.

The Danxia Landform consists mainly of red bedrock characterized by spectacular red cliffs. These rugged landscapes have helped conserve sub-tropical evergreen forests, as well as a host of many species of flora and fauna, about 400 of which are considered rare or threatened, UNESCO said.

The site comprises six areas found in sub-tropical Southwest China, including Langshan Mountain and Wanfoshan Mountain (Hunan Province), Danxiashan Mountain (Guangdong Province), Taining and Guanzhoushan (Fujian Province), Longhushan and Guifeng Mountain (Jiangxi Province), Chishui Mountain (Guizhou Province), Fangyan and Jianglangshan Mountain ( Zhejiang Province).

The historic monuments of Dengfeng in Central Henan Province were added Saturday to the World Cultural Heritage List.

Experts cautioned that a stamp by UNESCO means not only honor for a site, but also millions of visitors that may bring difficulties in protecting the site's cultural heritage.

Yangyuan stone on Danxia Mountain in Shaoguan, Guangdong Province

News for Today

China     Business     Culture     Science & Technology     Travel

International News Sources

The Wall Street Journal   China RealTime Report

Beijing’s Police Plan a Charm Offensive

Authorities said  they successfully tested the Beijing police department’s soon-to-be-launched microblog and gained more than 1,000 fans in a few hours.

Trash Threatens Three Gorges

China’s state-controlled media continues to punch holes in the image of the mighty Three Gorges Dam.

The latest poke came via China Daily, the English-language government-run newspaper. In an article Monday, the paper warns a thick layer of garbage washed into the reservoir by torrential rains could jam a key floodgate on the world’s biggest dam.

Rising Wages Rattle China's Small Manufacturers

The effects of China's rising wages and stronger currency are rippling through the close-knit group of textile and garment makers in the eastern town of Zhili, and challenging the future of small-business success stories like it around the nation.

Yuan Undergoes Hong Kong Lab Test

A burst of activity is under way here in the city that might be called China's in-house research-and-development center for currency liberalization.

Caixin Online

Central Bank Unwavering on Yuan Reform

Central Bank Deputy Governor Yi Gang on exchange rate reform, the yuan as an international reserve currency, and speculations of a double dip in the Chinese economy

Yi Gang, a deputy governor for China's Central Bank, said a convertible yuan remains the ultimate goal for the nation's currency exchange rate reform. Yi did not give a timetable, but instead emphasized that the central bank has been steadily reforming the yuan since 1994, noting that it has been convertible for current accounts since 1996.

Forex Chief: Inflation Relieved Yuan Pressure

The head of China's foreign reserves supervisor, in an exclusive interview, said recent yuan adjustments reflect balance

Inflation in China over the past decade has taken pressure off the yuan's foreign exchange rate, bringing the rate closer to equilibrium than 10 years ago, said Yi Gang, the head of China's State Administration of Foreign Exchange.

China's Big Four Lend 243 Billion Yuan in July

Compared to previous months of this year, the pace of bank lending decreased in July

China's four biggest banks lent a total of 243 billion yuan in July, according to official data released August 2.

The four biggest banks, nicknamed Big Four, are Industrial and Commercial Bank of China, China Construction Bank, Bank of China and Agricultural Bank of China.

The New York Times

Washington Shores Up Its Strategic Assets in Asia

HONG KONG — The United States has been gravely weakened by its Iraq and Afghan wars and consequent neglect of the strategic importance of East Asia. But two recent moves by Washington — the joint naval exercises with South Korea and a spirited diplomatic defense of the freedom of the South China Sea — have shown a renewed concern with America’s security interests in Northeast and Southeast Asia. Both these actions have been generally well received in the region, but not by China.

State-Owned Bidders Fuel China’s Land Boom

By DAVID BARBOZA

WUHU, China — The Anhui Salt Industry Corporation is a state-owned company that has 11,000 employees, access to government salt mines and a Communist Party boss.

Now it has swaggered into a new line of business: real estate.

The Australian

U.S. enlists China's worried neighbours

BARACK Obama's stance on Chinese naval ambitions is hardening, and Asian states are glad of it.

Like two circling titans, the US and China have now locked arms in a struggle for global pre-eminence that will define international politics and power for the next half century.

Kaixin OpEd - First published March 2010 'Where to now America?'

America states that is obligated to sell arms to Taiwan under the Taiwan Relations Act under Sec. 3302 Enacted 10 April 1979:
 
Sec. 3302. Implementation of United States policy with regard to Taiwan

(a) Defense articles and services:
In furtherance of the policy set forth in section 3301 of this title, the United States will make available to Taiwan such defense articles and defense services in such quantity as may be necessary to enable Taiwan to maintain a sufficient self-defense capability.
 
(b) Determination of Taiwan's defense needs:
The President and the Congress shall determine the nature and quantity of such defense articles and services based solely upon their judgment of the needs of Taiwan, in accordance with procedures established by law. Such determination of Taiwan's defense needs shall include review by United States military authorities in connection with recommendations to the President and the Congress.
 
(c) United States response to threats to Taiwan or dangers to United States interests:
The President is directed to inform the Congress promptly of any threat to the security
or the social or economic system of the people on Taiwan and any danger to the interests of the United States arising therefrom. The President and the Congress shall determine, in accordance with constitutional processes, appropriate action by the United States in response to any such danger.
 
 This Act came into force the same year the United Stated formalised relations with China pursuant to the following document:

Joint Communique on the Establishment of Diplomatic Relations Between China and US January 1, 1979

The United States of America and the People’s Republic of China have agreed to recognize each other and to establish diplomatic relations as of January 1, 1979.
 
The United States of America recognizes the Government of the People’s Republic of China as the sole legal Government of China. Within this context, the people of the United States will maintain cultural, commercial, and other unofficial relations with the people of Taiwan.
 
The United States of America and the People’s Republic of China reaffirm the principles agreed on by the two sides in the Shanghai Communique and emphasize once again that:
 
--Both wish to reduce the danger of international military conflict.
 
--Neither should seek hegemony in the Asia-Pacific region or in any other region of the world and each is opposed to efforts by any other country or group of countries to establish such hegemony.
--Neither is prepared to negotiate on behalf of any third party or to enter into agreements or understandings with the other directed at other states.

--The Government of the United States of America acknowledges the Chinese position that there is but one China and Taiwan is part of China.

--Both believe that normalization of Sino-American relations is not only in the interest of the Chinese and American peoples but also contributes to the cause of peace in Asia and the world.
 
'The United States of America and the People’s Republic of China will exchange Ambassadors and establish Embassies on March 1, 1979.'
 
This was followed in 1982 with an agreement with China to reduce and eventually eliminate sales of arms to Taiwan:
 
‘The US describes arms sales to Taiwan as a "long-standing commitment to provide for Taiwan's defensive needs".
 
But Gong Li, deputy director of the International Institute for Strategic Studies at the Central Party School, said Washington was missing a key point.
 
"The US claims that it must fulfil its promise of protecting Taiwan; however, it should also remember its declaration in the joint communique (signed in 1982) that it would reduce arms sales until they are totally stopped.
 
"With good prospects for cross-Straits relations, there is no need to sell Taiwan those weapons at all. Under the circumstances, the US action is improper."’

 
Over the intervening years America has consistently, against formal protests by China, sold arms to Taiwan.
 
In 1979 China was vulnerable to the U.S and has been so until the Great Financial Crisis (GFC). The Olympics showed the world the new China. The GFC showed just how strong China was economically. The world started to take notice and, after 50 years of anti-Chinese rhetoric and propaganda by western governments and media, people started to feel threatened.
 
Uncle Sam was happy to have those little Chinese people making widgets for them and lending the money created to the United States, but was not after a partner on the world stage. Uncle Sam had become used to dictating terms to the world.  After all, it had won the cold war, which clearly showed that democracy and capitalism triumphed over communism. Like a giant Labrador puppy it has been loping around the world spreading the good news, whether you wanted it or not.
 
China, from 1979, heeded Deng Xiaoping’s advice and kept a low profile while growing strong. China swallowed the many insults hurled at it along the way, of which sales of arms to Taiwan was just one. However, Deng did not envisage China remaining a weak power indefinitely. At some stage it would have to take its place on the world stage; 2008, the Olympic Games, was the public announcement of that.
 
However, the Chinese people remembered the insults and the bullying.
 
Since the Global Financial Crisis China has emerged strong than ever. Possibly, it is now time to do something about those insults.
 
Why did America approach China in 1972? It had no need to, it had China contained. It certainly could not have been a sudden feeling of bon homie and good will towards China. I sometimes think that Uncle Sam mistakes f…ing a country for making love.
 
No, it was not bon homie or a sudden desire to trade with China. It was to contain Russia. After the Vietnam war America was tired and weak. It must have realised that if China and Russia got back together they would be a formidable force to be reckoned with. The best way to stop that was to become friends with China. My friend’s enemy is my enemy.  There was no love lost between Russia and China so things proceeded. 
 
In 1979 President Carter signed the ‘Joint Communique on the Establishment of Diplomatic Relations Between China and US’.
 
Why did China sign? China knew that if it was to stand up in the world it had to get the United States off its back. By 1979 Deng Xiaoping was effectively in power and he knew that China needed a market if it was to become economically strong from which all else would follow.
 
Back  to the Communiqués and Acts that heralded rapprochement between America and China:
 
‘The United States of America recognizes the Government of the People’s Republic of China as the sole legal Government of China. Within this context, the people of the United States will maintain cultural, commercial, and other unofficial relations with the people of Taiwan.’
 
‘The Government of the United States of America acknowledges the Chinese position that there is but one China and Taiwan is part of China.’
 
So, pursuant to that wording, sale of arms to Taiwan is a direct attack on China. Taiwan is not a separate country defending its sovereignty, as America would have us believe. Yes, America reserved the right to have independent relations with Taiwan and to pursue commercial interests, but there is no formal wording about arms sales. That is reserved for the domestic Act.
 
In the same year, April 1979, America enacted the Taiwan Relations Act. A domestic Act that has no international legal standing as far as I can tell. The wording in this Act show an arrogant nation that will send arms to Taiwan at America’s sole discretion and ‘based solely upon their [ America’s] judgment of the needs of Taiwan,’.
 
That is a little like me enacting a law that my neighbour has to give me his house. It would be like China enacting a law that said that America has to send all its arms to China.
 
Law on any level has to be enforceable. In 1979, and until now, America could enforce the Taiwan Relations Act with the use of force.
 
Can it now?
 
In 1982 America crossed its heart and said it would be a good world citizen and slowly reduce sales of arms to Taiwan, eventually ceasing sales altogether. It was a little like President Obama’s pledge of friendship and rapprochement with China in 2009; the Nobel Peach Prize winner who is now pushing China to the brink.
 
From WWII America build up military bases around the world. It contained China with bases in South Korea, Japan, Taiwan and the Philippines.
 
During that time America could enforce its arms sales. It could enforce it domestic law.
 
Over the years China has been building up relationships with its neighbours in Asia. There is now a strong Trade Group, CAEXPO:

The Objective of CAEXPO
 
Based on the Framework Agreement on China-ASEAN Comprehensive Economic Cooperation, with the sole objectives of promoting the building of China-ASEAN Free Trade Area, and striving for mutual benefits and common prosperity, the China-ASEAN Expo focuses on regional economic and trade cooperation and provides tremendous opportunities for the business communities from all over the world.
 
The sponsors
Ministry of Commerce of the People’s Republic of China
Ministry of Industry and Primary Resources of Brunei Darussalam
Ministry of Commerce of the Kingdom of Cambodia
Ministry of the Trade of the Republic of Indonesia
Ministry of the Trade of the Lao People’s Democratic Republic
Ministry of International Trade and Industry of Malaysia
Ministry of Commerce of the Union of Myanmar
Department of Trade and Industry of the Republic of Philippines
Ministry of Trade and Industry of the Republic of Singapore
Ministry of Commerce of the Kingdom of Thailand
Ministry of Trade of the Socialist Republic of Vietnam
ASEAN Secretariat
 
 Japan is now looking at China and questioning its relationship with America. A significant step towards that was recently taken when Japan publicly acknowledged that is was the aggressor nation in the 1930’s and took responsibility.
 
Which country in the Asia region is going to support an American military strike? I would suggest, none.
 
From a practical point of view, they would all become the battleground for America’s foreign policy. Their country and peoples would suffer huge damage and loss. North Korea would side with China and march into South Korea. Japan would have to consider the benefit of becomes a cinder in the pacific, as would Taiwan. The Philippines like wise, though it is further away. 
 
All those countries, I would argue, would rather have peaceful trade with China and ride with the dragon to mutual prosperity. Imagine the pressure from the Taiwanese business groups, many of whom have factories in China and rely on trade with China. Imagine if China ceased all trade with Taiwan and ejected all Taiwanese from China citing that if they regard themselves as a separate foreign country, then they can all go back home.
 
If my analysis is correct, then America has effectively lost it bases in Asia.
 
And, which countries in the world will support America? America’s credibility on waging war is a little in tatters after Iraq. On the Dialogue programme the presenter ended the discussion on this issue with the observation that China is a member of the UN Security Council and will use its position to the full extent.
 
The Chinese people clearly support their government and do not want it to back down this time. They are prepared to accept any consequences that flow from that.
 
To be absolutely clear, China does not want a war. It prefers discussion to resolve issues. However, it also remembers the insults and knows that at some time it has to stand up to America. As one commentator noted, ‘America is lurking behind the peaceful rise of China.’
 
Is this the time?
 
I believe that the America administration ran up the flag when it sent Congress the notice of the arms sale. It was good for its domestic political agenda and they wanted to see if China would blink again.
 
A spokesman for the Washington Brookings Institute, Dr Kenneth Lieberthal, on CCTV-9 last night re-affirmed that America had no choice in the matter of the arms sale as it was bound to comply with its domestic law. He noted that the Pentagon had made the assessment that Taiwan was vulnerable to attack and under the law had to supply arms to redress the balance. That the sale was just rounding out a process stared by the Bush Administration. Finally, he expressed surprise that China was so concerned this time. He clearly stated the Washington was not stirring up trouble, that China was over-reacting. So, America argues, if anything develops China is at fault. My comment – what self satisfied and dangerous rot.
 
All the reports from China is that it will not blink this time. China has made its position absolutely clear. It has told America what it would do in terms of trade sanctions. China knows clearly that they will also be hurt, but is prepared to accept that. China is now waiting to see if America blinks.
 
A senior PLA General has said that if America continues to snipe at China then a ‘soft war’ in 2010 is inevitable. My concern is that one slip, and a soft war could well become very hot indeed.
 
So, where to now America?

Beijing places Cuba higher on agenda

IT has been a sometimes rocky friendship that has lasted 50 years.

When Fidel Castro seized power in 1959, his communist comrades in the People's Republic of China were among the first in the world to recognise his government, the following year.

Asia Times Online

Iran sanctions open door wider for China
By Antoaneta Becker

LONDON - The European Union's new sanctions against Iran over the Middle East country's nuclear development program appear to open a new space for Chinese companies to expand their investments in a country viewed as a rogue player by much of the western world.

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