China’s maritime disputes continue. A CCTV crew has embedded with a flotilla that is now fishing around the Nansha Islands, Global Times rails against Japan, Vietnam and the Philippines in Provocative neighbors disgrace themselves and Shao Feng, director of the International Strategy Division at the Institute of World Economics and Politics, Chinese Academy of Social Sciences, recently wrote in Caixin (Security Strategies for China’s Maritime Domain / 周边安全挑战与战略应对 ) that:
China must make appropriate foreign policy adjustments to respond to shifting geopolitical realities.
First, cooperation is not China’s only strategy in the maintenance of territorial concerns. Only by combining cooperation with credible commitments to use of force can peaceful coexistence with neighboring countries be achieved.
Cooperation is the main policy driver for China’s relations with neighboring countries, but cooperation isn’t the bottom line. The principle of sovereignty and long-term national interests is China’s top priority. Conflict is a necessary component to China’s commitment to cooperation with foreign countries.
Therefore, China must reassess its South China Sea strategy. On the one hand, the strategy is aimed at the maintenance of peace and stability in the South China Sea. On the other hand, the key objective is to safeguard China’s legitimate maritime rights and interests. China’s “good neighbor, good friend and good partner” policy is not unconditional and unidirectional, but requires the sincere cooperation of neighboring countries. Blind compromise would only be beneficial to U.S. strategic interests in Asia. But if China uses timely, appropriate, justified and restrained force to fight back, the U.S. will act to restrain its allies in order to not upset the balance of the U.S.-China relationship.
In short, confrontation should play a larger role in maritime security strategy. Cooperation must be in good faith, competition must be strong, and confrontation must be resolute.
It would be nice to think that Shao is only speaking for himself…
China has already proven that the Philippines will cave quickly in the face of economic warfare, any clash with Japan would be very complicated given the US-Japan alliance, so if China wants to prove resolve in a confrontation in the South China Sea the likely opponent is probably Vietnam. Given their shared history and enmity, and Vietnam’s military strength, expect Vietnam to fight. Any PRC-Vietnam conflict would be a boon for US-Vietnam relations, US standing around the region, and defense contractors, especially those with strong naval warfare “solutions”. A conflict might also be a good excuse for Hu Jintao to remain chairman of the Central Military Commission after the 18th Party Congress.
In another move sure to upset its neighbors, China’s Jiaolong submersible is planning to dive in the South China Sea and “China plans to eventually build a deep sea station, where submersibles can dock undersea and oceanauts can stay to work.” Oceanauts?
The Japanese ambassador has returned to Beijing after a brief recall over the Diaoyu/Senkaku Islands issue, and a wooden replica of Zheng He’s ship will navigate ancient routes in 2014, no doubt making friends along the way…
Take the following with a grain of salt. Duowei reports that a list of 7 candidates for the 18th Party Congress Politburo Standing Committee has been submitted to Jiang Zemin for review–独家：常委7人名单送江审阅 北戴河会议拍板. Remember, this blog was the first to reveal that Jiang Zemin was in Beijing and active, in April’s is Jiang Zemin meeting foreign delegations in Beijing?. Later a photo surfaced of Jiang Zemin and Starbucks CEO Howard Schultz.
US-listed Sina is now in the habit of deleting Weibo accounts of American organizations. In the last month the Sina censors have erased official accounts of the New York Times, Bloomberg and the US Consulate in Shanghai. Sina’s once overhyped stock has struggled and is now near a 52-week low. Institutional investors are unlikely to care about the moral issues around censorship, but they may have finally realized that the cost of maintaining an army of net nannies is significant and Weibo still lacks a credible plan to make money.
On July 13 the Congressional Research Service issued an interesting report on China, Internet Freedom and US Policy (PDF).
China’s Olympic athletes are wary of eating Chinese food, as Caixin explains in why eating in China is no game:
The General Administration of Sports prohibited all of the country’s sports teams from eating pork, beef or lamb, except for the meat provided from known safe sources at the athletes’ training bases.
China’s has had countless serious issues with food in recent years. In the sports sector, where doping is of particular concern, it’s no wonder the sports authority keeps a very close eye on what the members of its national teams put in their mouths.
Before the 2008 Olympics in Beijing, the Chinese swimmer Ouyang Kunpeng received a lifetime ban. He was believed to have eaten barbecue at a roadside stall and thus had a serious level of clenbuterol in his blood. Farmers in China illegally add clenbuterol to pig and sheep feed to keep the animals lean. In the sporting world, the chemical is a performance-enhancing drug.
The recent economic news has been quite negative. Tom Orlik and Bob Davis provide a glimmer of something potentially positive in Labor Shortage May Help China Adjust to Slower Growth, writing in the Wall Street Journal that:
Wages are still climbing rapidly in China and many companies are having trouble filling jobs despite the sharp economic slowdown here—evidence of a structural shortage in the labor market that may help China adjust to slower growth without political instability and whet consumer appetites for foreign goods.
China is not pleased by US lawmakers making a fuss over made in China Olympic uniforms. In a commentary the official Xinhua news agency says the US uniform row is Olympic blasphemy. If these lawmakers are really so sincerely concerned about the American textile worker, perhaps they can require that all Congress members and lobbyists “wear American”?
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- 刘洋父母居住小区停电 开发商17分钟后道歉赔偿_新闻_腾讯网
- 北大在6大省招生总数不及北京 被指严重不公 _新闻_腾讯网
- Gold ‘Divine’ As Chinese Sell Wine | ZeroHedge
or diamonds, as per the man from Ordos further down this post//
As Bloomberg’s chart-of-the-day points out, the rapid rise in wine prices – on the back of Chinese demand for French reds – came to an abrupt halt when the PBOC started to put the inflation brakes on – and as is clear – wine is now tracking the Shanghai Composite almost perfectly (down) as the ‘asset grab’ phase ends.
- 15m yuan diamonds are a man’s best friend | SCMP.com
guess not everyone in ordos is now broke//
A man from Ordos, Inner Mongolia, bought 104 diamonds for nearly 15 million yuan (HK$18.4 million) from a retailer in Beijing last week, hoping to keep them as a long-term investment,local media reported.
It was the largest single sale of diamonds in Beijing in recent years, said the chairman of the retailer, City of Love Diamonds, who spoke to the Beijing Times.
The chairman said the buyer was a man of about 50 years old who did not want to reveal his full name. He also said the speculative purchase was made because the buyer believed the recent price of gold to be unstable.
- Law of the Sea Treaty: dead in the water? | The Cable
As of today, 34 Republican senators have expressed opposition to Senate ratification of the Law of the Sea Treaty, a number that would add up to rejection of the treaty if all those senators vote against it when it comes to the Senate floor.
- 人民日报-有机产品本月起加贴唯一编码，质量可全程追溯 防范“有机”耍投机（政策聚焦·关注有机产品（上））
new official stickers to go own organic food
- 人民日报-国土资源部表示打击囤地 将房地产调控落到实处
discussion of the wailing and kneeling peking u president at his mom’s 90th birthday makes page 1 of people’s daily//
- Foreign drug mule detained at Beijing airport – People’s Daily Online
A customs media officer, surnamed Feng, refused to say what country the suspect comes from as it’s “inconvenient, as there’s an international issue involved in the case.”
Feng revealed the woman is in detention, and her case will be transferred to the court for judgment under Chinese law. This is the first time a female suspect has been caught smuggling drugs inside her body on an international flight to China so far this year, said Feng.
- Big shake-up for ‘Big Four’ – People’s Daily Online
The halo over the “Big Four” accounting firms as the first choice for business and most-wanted employer is slipping as they face rising challenges from fast-growing domestic competitors.
According to the table for the top 100 accounting firms in China ranked by the Chinese Institute of Certified Public Accountants in late June, the revenues of the top 10 domestic firms grew 38 percent year-on-year in 2011.
- Is it worth to spend 10 billion yuan building ‘Chinawood’? – People’s Daily Online
Shi Juan, general manager of Jiangsu Chinawood Investment and Development Company, has been busy lately receiving the managers of many film production companies, in the Wuxi National Digital Film Industrial Park 150 kilometers away from Shanghai, a major film production hub in China.
The Wuxi National Digital Film Industrial Park, also known as “Chinawood,” opened on May 29. Covering an area of 6 square kilometers, the Wuxi film industrial park is designed to become an international digital film industry base integrating film shooting, production, distribution, and trading and focusing on digital film shooting and post-production.
- 中国稳增长具世界意义 唱衰捧杀不会影响政策选择–国际–人民网
- PRC FAQ for ROSES 2012 – NASA Science
Q1: What is the procedure for getting clarification on whether existing grants or contracts, or proposals submitted in response to the 2012 ROSES NRA are subject to the restriction on bilateral activity with China (Public Law112-55)?
- How to have a successful Chinese business or government meeting (an etiquette guide)
- China shifts its maritime strategy – People’s Daily Online
“In South China Sea issue, China’s maritime strategy is turning from maintaining stability to safeguarding sovereignty,” said Jin Canrong, associate dean of international studies’school at Renmin University of China.
- Conspiracy Theories Fly Again After Hero Hurdler Liu Xiang Quits Race – China Real Time Report – WSJ
- Yale-Singapore Venture to Forbid Political Protest – WSJ.com
All about the money
- Labor Shortage May Help China Adjust to Slower Growth – WSJ.com
BEIJING—Wages are still climbing rapidly in China and many companies are having trouble filling jobs despite the sharp economic slowdown here—evidence of a structural shortage in the labor market that may help China adjust to slower growth without political instability and whet consumer appetites for foreign goods.
- WTO Rules Against China on Credit-Card Bias – WSJ.com
A World Trade Organization panel has determined that China’s tight control over credit- and debit-card transactions discriminates against U.S. card companies, a decision the card issuers hope will lead to new business opportunities in China’s fast-growing payments market.
- Submersible planning to dive in South China Sea — Shanghai Daily
what is with the foreign urban management surge? do these guys realize how stupid they look?
- Congressional Research Service–China, Internet Freedom and US Policy–PDF
- China’s travellers keep on moving | beyondbrics
China’s economic slowdown has yet to effect Chinese tourists: the rise in Chinese foreign travel shows no sign of slowing.
According to the official ministry statistics, 38.6m mainland Chinese citizens travelled abroad in the first half of 2012. That’s up just shy of 20 per cent from the corresponding period in 2011.
- The Pentagon’s New Generation of Secret Military Bases | Mother Jones
when will we start bumping into chinese in africa?//
How the Pentagon is quietly transforming its overseas base empire and creating a dangerous new way of war.
- China: ‘Pervasive access’ to 80% of telecoms
more fun for huawei//
By F. Michael Maloof WASHINGTON – The Chinese government has “pervasive access” to some 80 percent of the world’s communications, giving it the ability to undertake remote industrial espionage and even sabotage electronically of critical infrastructures in the United States and in other industrialized countries
- Inside the Investigation of Leading Republican Money Man Sheldon Adelson – ProPublica
At least one prominent Republican has expressed concern about the source of Adelson’s campaign contributions. “Much of Mr. Adelson’s casino profits that go to him come from his casino in Macau,” Sen. John McCain noted in an interview last month with the PBS “NewsHour.””Maybe in a roundabout way, foreign money is coming into an American political campaign,” said McCain, an Arizona Republican.
- Wooden replica of Zheng He’s ship to navigate ancient routes in 2014|China|chinadaily.com.cn
In 2014, 36 volunteers will get to travel on a 71.1-meter-long wooden replica of the treasure ship on which Admiral Zheng He (1371-1433) undertook seven voyages in the 1400s. The ship is being built in Nanjing, East China’s Jiangsu province.
- Domestic auto brands falter as industry growth brakes – Xinhua | English.news.cn
China’s fledgling domestic car brands, which once aspired to be globally competitive, now face the risk of crashing as the world’s largest car market loses steam, analysts said at an ongoing auto show in northeast China.
- Philippines warns China fishermen to stay away | ABS-CBN News
MANILA, Philippines – The Philippines on Monday warned a large Chinese fishing fleet in the Spratlys to stay clear of its waters amid a continuing face-off between the two countries over disputed territory.
- Japan ambassador returns to Beijing|Asia-Pacific|chinadaily.com.cn
Japan’s ambassador to China returned to Beijing on Monday after Tokyo summoned him over the weekend to discuss the escalating tension over the Diaoyu Islands.
- Provocative neighbors disgrace themselves – Globaltimes.cn
The Philippines, Vietnam and Japan have recently stepped up their rhetoric against China over territorial disputes.
Manila attempted to exert pressure on China through ASEAN, but the request was rejected by the majority of members. Tokyo yesterday withdrew its ambassador to China after a series of protests.
The new provocations brought no benefit to them as China did not change its original stance. These countries are only humiliating themselves.
- VIDEO: CHINA STARTS FISHING IN NANSHA ISLANDS CCTV News – CNTV English
CCTV crew embedded
- Worst-in-Generation Drought Dims U.S. Farm Economy Hopes – Bloomberg
- Taiwan Tests Sub-Hunting Aircraft, Attack Copters in Drill | Defense News | defensenews.com
Taiwan for the first time July 16 tested how a fleet of advanced submarine-hunting aircraft and attack helicopters would be utilized in the event of an attack by rival China, officials and media said.
- Chinese Businesses Get Advice on U.S. Investment – WSJ.com
Looking to ease the way for Chinese investment in the U.S., the U.S. Chamber of Commerce is advising Chinese businesses not to count on “personal relationships” with government officials as a key to success.
The advice came in a report prepared by the U.S. Chamber for an investment forum Tuesday in Beijing. The event, co-hosted by the China Center for International Economic Exchanges, a Chinese government think tank, was expected to draw about 400 business executives and government officials, current and past.
- Hong Kong ‘China Model’ School Leaflets Praise One-Party System, Stir Controversy – China Real Time Report – WSJ
China’s government is led by a “progressive, selfless, and united ruling group,” according to a teaching booklet sent to all Hong Kong-government schools that’s stirring controversy in the city, and that’s led critics to brand it “brainwashing.”
“The China Model,” a 34-page color booklet, pays homage to China’s one-party system and says multiparty systems, such as those in the U.S., set up a “malignant party struggle.”
- ZTE Falls Most Since 2008 as Net Income May Decline 80% – Bloomberg
ZTE Corp. (763), China’s second-biggest maker of telecommunications equipment, slumped the most in more than three years in Hong Kong trading after the company said first-half profit may have declined as much as 80 percent.
- China’s Stocks Fall to Lowest Level Since March 2009 on Earnings – Bloomberg
China’s stocks fell, dragging down the benchmark index to the lowest level in almost 3 1/2 years, as concern about slumping profits overshadowed speculation the government will introduce stimulus measures for the economy.
- Foot Massage Chain China Liangtse Said to Mull German IPO – Bloomberg
China Liangtse Wellness, a massage chain with more than 300 branches in China and Europe, is planning an initial public offering in Frankfurt, according to a person with knowledge of the process.
- China’s Car Dealers Will Boost Discounts on Inventory, NDRC Says – Bloomberg
China’s automobile dealers will increase incentives and discounts as they struggle with a worsening glut in the world’s biggest vehicle market, according to the nation’s top economic planner.
- China Echoes 2009 Stimulus Planned Railway Spending Boost – Bloomberg
China’s railway infrastructure investment may double in the second half of this year from the first six months, aiding efforts to reverse a slowdown in the world’s second-biggest economy.
Full-year spending will be 448.3 billion yuan ($70.3 billion), according to a statement dated July 6 on the website of the National Development and Reform Commission’s Anhui branch. That indicates about 300 billion yuan of investment in the second half, up from about 148.7 billion yuan in the first.
- China SOEs’ Profits Down 11.6Pct in Jan-June-Caijing
Profits of China’s state-owned enterprises fell 11.6 percent to 1.02 trillion yuan in the first six months this year
- Secretive North Korea ditches top military man, purge seen – Yahoo! News
North Korea’s ruling party has removed a top military official close to the center of power, suggesting new leader Kim Jong-un and his closest advisers may be purging the ruling elite to strengthen their grip on the secretive state.
- KPMG Starts Localization Transformation in China, the First in “Big Four”-Caijing
KMPG, one of world’s four largest international accounting firms, was approved by the Ministry of Finance on Friday to re-establish itself as a special general partnership enterprise from a Sino-foreign cooperative joint venture under contract, with a registered capital of 10 million yuan.
- China’s cotton prices soar devastatingly high｜Economy｜News｜WantChinaTimes.com
While China’s cotton prices have hit a 150-year high, international cotton prices dropped sharply this year due to oversupply and declining consumption amidst an economic recession. In the face of competition from cheap cotton around the world, it will be a challenge for China to protect its local industry.
- Worms in your chocolate: Beijing｜Economy｜News｜WantChinaTimes.com
Candy produced by Kraft foods was found containing worms 10 days after its release. The company says it is still investigating the cause.
On July 5, a man in Beijing bought “Eclairs” made by confectionery company Cadbury, which is owned by Kraft Foods. When he opened one, he found something weird on the surface.
- Chinese firm that offered financial bridge to US collapses｜Economy｜In-depth｜WantChinaTimes.com
In early 2012, it leased out half of its office to another company and carried out fundraising via private share placement. The Beijing labor arbitration committee has accepted complaints from many of the firm’s employees for unpaid salaries owed by China-US Bridge.Xu Jie, the company’s chairman, was investigated by the US Securities and Exchange Commission at the end of 2010 for accounting and auditing offenses when helping a number of Chinese firms list shares in the US.
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