All posts by LLD - 133. page

Well-known Chinese news site Netease recently reported that Venezuela, a long-term Chinese friend, seems to be planning to breach its oil supply contracts with China. Venezuela has been breaching its supply contracts with many oil service providers. China has been providing loans to Venezuela for a long time. Since 2006, the total amount has reached US$50 billion, which is half of China’s loans to Latin America. Currently Venezuela is exporting 330,000 barrels to China every day. However national newspapers in Venezuela have reported that the country doesn’t need to continue those exports any more. The Chinese Ministry of Commerce later confirmed the claim and added that the decision was made based on a request from Venezuela. The loans were apparently extended, but there has been no clear indication of what the new arrangement is. Venezuela is currently going through a major challenge in the lack of foreign exchange reserves. The situation is causing difficulties even in toilet paper supplies. The money saved by not paying back loans will help ease the painful need for cash.

Source: Netease, October 24, 2014

http://money.163.com/api/14/1024/08/A9AD8R8000254TFQ.html?frp091

On October 9, Shi Mingde, the Chinese Ambassador to Germany, published an article on People’s Daily titled, "Use an All-out Effort to Develop an Upgraded Version of Sino-German Relations." Below is a translation of selected excerpts.

"For a little over a year, the frequency of exchanges of high-level visits between China and Germany has been unprecedented. This clearly shows that, between the concerted efforts of China’s new generation of central leadership and the new government of the Federal Republic of Germany, Sino-German relations have not only developed steadily; they have reached the highest level in history in terms of depth and breadth. The leaders of the two countries have maintained a close and trusting relationship."

"Founded on solid bilateral political mutual trust, Sino-German relations continue to carry a rich strategic content. Entering into the new century, Sino-German relations embarked on a ‘fast track’ and ‘acceleration period’ of comprehensive development; they have successfully achieved a ‘triple jump.’ In 2004, the two sides announced a partnership in global responsibility within the framework of the China-EU comprehensive strategic partnership; 2010 saw a comprehensive advancement of that bilateral strategic partnership and the establishment of a consultation mechanism. In 2014, the bilateral relationship will elevate further to an all-around comprehensive strategic partnership relationship. This not only points out the direction for the continued expansion and deepening of Sino-German relations, but also bears far-reaching significance for creating a new type of mutually beneficial relationship between a developing nation and a developed nation."

"Pragmatic cooperation between the two countries has become a long lasting force of propulsion for the relationship. This year, against the backdrop of a more uncertain and unstable world economy, January – August Sino-German trade reached US$117.35 billion, a year-over-year increase of 12.2 percent. The bi-directional investment has also seen a substantial increase and is expected to reach a record high year end. Bilateral cooperation in politics, economics, the humanities and international affairs are comprehensive, pragmatic, extensive, and deep. The China-Germany inter-governmental consultation is the highest-level consultation mechanism between China and any Western country. Nearly 30 minister level senior officials are expected to participate in this round of the ‘Sino-German joint meeting of the Cabinets.’ Almost all members of the German Cabinet will participate to discuss plans for future cooperation between China and Germany. The two countries decided to upgrade diplomatic and security strategic dialogue, start a high-level financial dialogue, promote high-end manufacturing and ‘Industry 4.0’ cooperation, and implement Visa Facilitation Services. The ‘four-wheel drive’ pragmatic cooperation between China and Germany will provide a lasting momentum to promote China and Germany as the top partner in each their respective regions."

Source: People’s Daily, October 9, 2014

http://paper.people.com.cn/rmrb/html/2014-10/09/nw.D110000renmrb_20141009_4-03.htm

On September 9, Xinhua quoted a report from the Russian newspaper Independent (Независимая газета) that China is becoming Tajikistan’s most important economic and strategic partner.

The article, titled, "Tajikistan Is Becoming China’s Important Client in Raw Materials" stated, "Today, Beijing is one of Dushanbe’s [the capital of Tajikistan] top three trading partners. During 2011, bilateral trade exceeded US$2 billion. Dushanbe believes that this is not the upper limit."

"Xinjiang is treated as one of the future directions of the two sides for expanding trade cooperation. Emomalii Rahmon (the President of Tajikistan) said in an interview, that he hoped to reach an agreement on the Tajikistan-Xinjiang Uyghur Autonomous Region (XUAR) subcommittee on economic and trade cooperation during his talks with Chinese leaders. One cannot rule out that the plan will be implemented, as China regards Tajikistan as Xinjiang’s energy supplier."

"Tajikistan also hopes to participate in supplying natural gas to China. The Central Asia gas pipeline will go through Uzbekistan, Kyrgyzstan, and Tajikistan. Dushanbe wants to pump the natural gas from the Bokhtar field into the pipeline. China National Petroleum Corporation (CNPC) and the French Total oil company have started to develop this field. Experts from the two companies said that Tajikistan is likely to become the region’s second-largest supplier of natural gas to China."

"Last year, China won the right to develop the Zeravshan gold mine. In 2007, China’s Zijin Mining Group Co., Ltd (紫金矿业公司) acquired the Zeravshan Gold Company. In 2013, Zijin invested US$60 million in gold mining. Last year, Tajikistan received a US$140 million long-term loan from China. The funding will ensure the increased production of gold. In addition to gold, China also paid special attention to lead and zinc."

"China’s agriculture encountered little significant competition in Tajikistan. When local farmers traveled to Russia for the Gold Rush, Chinese farmers came to cultivate the land. The Ministry of Agriculture of Tajikistan leased land to Chinese farmers. The Ministry explained that there is a lack of domestic farming capacity, and that cotton-planted lands are no longer suitable for other crops. The Chinese have the technology to restore the salts to the soil. Their Tajikistan grown products will be sold locally."

"In recent years, China’s investment in Tajikistan approached US$500 million (about 3.07 billion yuan); its loans were about US$1 billion (about 6.14 billion yuan). Beijing is becoming a generous and important source of finance for a number of projects in Tajikistan. Tajikistan’s growing economic dependence on China is not only the key for Beijing to access natural resources, but also a tool for political pressure."

Source: Xinhua, September 9, 2014

http://news.xinhuanet.com/cankao/2014-09/09/c_133630666.htm

On September 5, an opinion article appeared on People’s Daily called, "Radical Opposition Groups are the Major Roadblock to Democracy in Hong Kong."

The article stated, "One can draw three conclusions. First, British colonial rule is not compatible with democracy. Basically, the development of democracy in Hong Kong got off the ground after the transfer of sovereignty. Second, the central government is an important driving force for the development of democracy in Hong Kong. The basic political framework of ‘one country, two systems; Hong Kong being governed by the people of Hong Kong’; and the Basic Law are the cornerstone of Hong Kong’s democratic governance. Third, democracy in Hong Kong is developing steadily and swiftly. If the Legislative Council of the SAR Government approves the reform package, Hong Kong will achieve universal suffrage in 2017."

"However, while speaking highly of the development of democracy in Hong Kong, we should also see that the development of democracy in Hong Kong still faces considerable difficulties and obstacles. One obstacle is that Hong Kong’s few political forces are resisting the central government’s governance rights."

"After reunification, the vast majority of people in Hong Kong have had a high degree of recognition that they are Chinese. However, since British colonial rule lasted a hundred years, there are still a small number of political forces holding a mentality of exclusion and confrontation against the central government. A handful of politicians even still regard the United Kingdom as their mother country, with a hope that the United Kingdom and other Western countries will interfere with Hong Kong’s politics. Although these political forces are few in number, with overseas support, they still have considerable political energy."

"The issue facing our society today is not whether to develop democracy, because democracy in Hong Kong has embarked on a road of rapid development. Anyone who blocks the development of democracy will be unpopular. The problem is that some political forces expect to mislead the quest for democracy in Hong Kong society by confronting the central authorities. If Hong Kong cannot achieve a high degree of consensus on the issue of national identity, the election of Chief Executive by universal suffrage in 2017 is likely to abort and the development of democracy in Hong Kong will be undermined. In order to achieve universal suffrage in 2017, we must prevent the radical opposition from creating social divisions on the issue of national identity, so that Hong Kong’s democratic politics can move forward within the framework of the Chinese Constitution and the Basic Law."

Source: People’s Daily, September 5, 2014

http://paper.people.com.cn/rmrb/html/2014-09/05/nw.D110000renmrb_20140905_8-05.htm

On September 5, the Chinese Academy of Social Sciences issued the Shanghai Cooperation Organization (SCO) Yellow Book (2014), a book which analyses the current international and regional situations that the SCO faces. The Yellow Book pointed out that, when various conditions are close to mature, China can consider discussing the expansion of the SCO with Member States and that a consensus with the member states is still needed for a number of important issues.

"First, the SCO’s legal basis should be reinforced. The rules of the game should be designed without compromising the fundamental interests of member states. The more member states, the more difficult it will be to achieve a consensus and change the rules of the game. The SCO should perfect its legal system as soon as possible so as to lay a solid legal foundation for the organization’s sustainable development."

"Second, the number of members should be expanded in stages, with a good grasp of the conditions and timing. As mentioned earlier, as the conditions mature for India and Pakistan to become SCO member states, they should be the first choices for SCO expansion. In the past, the SCO did not consider Iran. It was correct from a strategic perspective, but the SCO should maintain close cooperation with Iran, push Iran out of its ‘nuclear trap,’ and create conditions for its formal participation in the SCO."

"The SCO can also consider expanding its members to include the level of observer members, with Turkey as a candidate to be an observer member state. Turkey is a NATO member, but not an EU member. Culturally it is different from the West and is in an embarrassing situation because the West does not fully recognize it. Although it is a country with Muslims as the majority, Turkey is a secular state. Despite Turkey’s close ties with the West, It has shown quite good independence, aggressiveness, and flexibility in diplomatic affairs. Geographically, Turkey is in both Europe and Asia. It is an important gateway for China to reach Europe through Central Asia and West Asia. To include Turkey as an observer member (when conditions are mature, the SCO can absorb it as a full member) is conducive to regional stability and economic development."

"Through SCO negotiations, countries that are willing to join the SCO should accept SCO Charters and all of its founding legal documents and accept the ‘Shanghai Spirit’ advocated by the SCO. This helps the SCO maintain consistent positions on major international issues and improve operational efficiency.

The Yellow Book believes that, after gradually expanding member states, the SCO will gradually become an important platform for China to engage in regional security and economic cooperation and multi-cultural exchanges with relevant countries. The "Silk Road economic zone," stability and development in Afghanistan, energy and financial cooperation, the strike on "three forces" and other major issues will become the focus of SCO.

Source: People’s Daily, September 5, 2014

http://world.people.com.cn/n/2014/0905/c1002-25611065.html