Skip to content


To all of our readers: we fully appreciate the critical importance of understanding the increasingly significant role that China is playing in the fast-changing, closely-integrated global community.

To better serve your needs and to enhance your experience, we have re-designed our website with a new look and with improved search capabilities.

Continue reading

China has Four Counter Measures for the Joint Japan-U.S. South China Sea Patrol

Well-known Chinese news site Sina recently published an in-depth analysis on the strategy against the newly announced Japanese plan to join the U.S. South China Sea naval patrol. The Chinese central command had long expressed the position that China wouldn’t just not take any action on the U.S led “joint patrol.” The article suggested four immediate actions that China can take. First, China can quickly militarize the islands in the region. Second, if the “joint patrol” becomes intensified, China can announce the establishment of the South China Sea Air Defense Identification Zone. The third approach is to focus on Japanese vessels by flying aircraft over them at low altitude. The last mechanism is to mount higher pressure on Japan by increasing the frequency of law enforcement patrols near the Diaoyu Islands. The article called the strategy the new “protracted war,” which was the strategy China applied to win against Japan in the Second World War.

Source: Sina, September 19, 2016

People’s Daily: Why the U.S. Got Stuck in the Shooting-Protest Dead Loop

People’s Daily recently published a commentary suggesting that the U.S. is suffering the “dead loop” of having shooting tragedies followed by violent protests every month and it seems there is no way out. The article started with a discussion of “yet another shooting” which occurred recently in Charlotte, North Carolina. An unarmed black man was just one of the tens of thousands of innocent lives lost under police guns. Just in 2015, 986 innocent people died due to “over law enforcement.” That covered all 50 U.S. states except Rhode Island. Of those who died, 40 percent were African American. The U.S. always labels itself as the leader of democracy and human rights. However, even the democratically elected black President Obama regretted that there have been too many tragedies caused by a “disease” in the justice system – racial discrimination. The violent and over-done law enforcement process in the U.S. has made the nation’s human rights record “rustic,” and brought the total number of current prisoners to 2.2 million, which makes the U.S. number one in the world. Minorities can do nothing but protest. The author concluded that racial discrimination and injustice in the justice system bought the U.S. a one-way ticket to go deeper and deeper into the “shooting-protest dead loop.”

Source: People’s Daily, September 22, 2016

In August, Russia Became China’s Largest Oil Supplier

Well-known Chinese news site Sina recently reported that, according to data provided by Chinese Customs, in August, Russia replaced Angola to become China’s largest oil supplier. China increased oil imports mainly due to the stocking needs of China’s independent oil refiners. In August, the volume that Russia supplied increased by 50.2 percent, month-over-month. Angola was the largest supplier in July and Saudi Arabia used to hold the top seat. Statistics also showed that, in the first eight months, China’s total import volume from Russia increased by 30 percent, year-over-year. So far, Saudi Arabia is still China’s largest overall oil supplier, However, as of now, China’s imports from Saudi Arabia this year only saw a one percent increase, year-over-year. Currently Saudi Arabia’s supply level to China is 997,520 barrels per day, and Russia’s daily level is 977,330 barrels.

Source: Sina, September 22, 2016

Foreign Exchange Administration Bureau to Prevent Use of M&As to Transfer Capital Overseas

Chinese enterprises are accelerating the pace of their overseas mergers and acquisitions (M&As) as a whole. Guo Song, director of the Capital Management Department of the State Administration of Foreign Exchange (SAFE), said SAFE would support normal overseas M&As and would maintain a balance of international payments.

At a press conference on September 22, Guo said that [the Chinese government] will support real overseas investments, but will not allow false investments. Over the past year, [SAFE found] that some enterprises and individuals transferred assets through foreign investment channels. This will become the SAFE’s major focus in managing overseas M&A activities.

Given the background of the slowdown in China’s economic growth and the continuous devaluation of the RMB, cross-border M&As have become the choice of many Chinese enterprises to mitigate risks. According to statistics that the Zero2IPO Group has published, China completed 107 cross-border M&As in the first half of this year, with a transaction amount over 176.446 billion yuan (US$26.46 billion – both data represent record highs).

In the overseas M&As, the proportion of central enterprises has continued to decline. Zhang Ming, director of the International Investment Office of the World Economics and Politics Institute at the Chinese Academy of Social Sciences, pointed out that private enterprises completed nine out of the top ten overseas M&A deals announced in the second quarter (which was 99 percent of the total); three of them (accounting for 64 percent of the total amount) were due to the domestic private parent company injecting capital into overseas subsidiaries. The specific purpose of the injection and the final destination were not very clear.

Source: Caixin, September 22, 2016

Survey Shows that 90 Percent of the Japanese Have a Poor Impression of China

On September 23, BBC Chinese reported that a non-profit organization known as the “Speech NPO” conducted a survey of residents of Japan. The survey done in 2016 showed that 90 percent of the Japanese respondents had a poor impression of China which was compared to the results from the previous year.

The organization has published reports on such public opinion surveys between China and Japan for the past 12 years.

On the Japanese side, the survey company sent out questionnaires to 2,000 business operators, academicians, media workers and civil servants. The results from 477 respondents were analyzed. On the Chinese side, the results were based on telephone interviews of 612 people.

Among the Japanese respondents, 91.6 percent of those respondents surveyed had a poor perception of China, a slight increase from 88.8 percent the previous year; 76.7 percent of the Chinese respondents did not feel good about Japan, which was down slightly from 78.3 percent the previous year.

The main reason for the poor perception from both sides is the territorial dispute.

Source: BBC Chinese, September 23, 2016