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Guangming Daily: China To Develop its Own Software for National Security Concerns

Guangming Daily reported on a possible security risk for China. It pointed to the increasing popularity of desktop software applications, which could be used as weapons to control the network should a network war break out. The paper quoted Luo Jiangchun, CEO of Funshion.com, a popular Chinese website that distributes online movies. Luo argued that from a national security point of view, China should pay special attention to the particular issue (given that China’s desktop software market is dominated by foreign companies). “This presents a security risk not only for the individual’s propriety information, but also to China’s network.” The only way out of this dilemma is for China to bring its local software companies up to par, so that they will dominate the market and eliminate the need to rely on bringing foreign software into China.

Source: Guangming Daily, August 9, 2009
http://www.gmw.cn/content/2009-08/09/content_960543.htm

Briefings | | |   Information/Technology

China News Agency: The U.S. Lowered Itself to China for Its National Interest

China News Agency quoted an article from the Hong Kong newspaper Ming Pao commenting on the U.S.’ behavior at the First Round of Sino-U.S. Strategic and Economic Dialogue in Washington, DC on July 27 and 28. Ming Pao said that Obama lowered himself to China, demonstrating the U.S.’ flexibility of being soft in exchange for its national interest.

However, how well the Sino-U.S. relationship goes depends on the following three main issues: 1. How much additional speaking power will the U.S. allow China to have in international organizations such as the IMF? 2. Will the U.S. stop the ban on selling advanced technologies to China? 3. When the U.S. economy stabilizes, will it reduce its spending or devalue the dollar to solve its financial problems but cause huge losses to China who owns a large amount of Treasury bonds?

Source: China News Agency, July 29, 2009
http://www.chinanews.com.cn/hb/news/2009/07-29/1794786.shtml

Briefings | | |   US-China Relations

China Peaceful Reunification Association Establishes a Regional Hong Kong Association

The Hong Kong Regional branch of the China Peaceful Reunification Association was formed on July 30. At the ceremony at the Hong Kong Convention Center, Du Qinglin, Minister of the United Front Work Department of CPC Central Committee, said the Hong Kong Association will build a bridge to promote exchange between the two sides (China and Taiwan); firmly defend national unification and territorial integrity; continuously expand the force to promote reunification and prevent (Taiwan’s) independence.

The President of the Hong Kong Regional Association, Gao Jingde, outlined three areas for the association to focus on: 1. Actively connect with the organizations and individuals in Hong Kong, Taiwan, and overseas to form a peaceful reunification force; 2. Promote trade and exchange of culture, education, technology, media, sports, and tourism; 3. Conduct real and good work for a peaceful relationship between the two sides.

Source: United Front Work Department of CPC Central Committee
http://www.zytzb.org.cn/zytzbwz/newscenter/benwang/200907/t20090731_567248.htm

Briefings | | |   Geo-Strategic Trend

International Herald: China’s J-10 Fighter Goes to South China Sea

Around August 1, the PLA Daily reported that the Air Force in the Guangzhou Military Command conducted a J-10 fighter aerial refueling. The International Herald explained that J-10 is the most advanced fighter jet in China. Its flying range is 3,400 km and effective air combat radius is 700 km. As the islands and water in the South China Sea that China and ASEAN countries dispute are over 1,000 km from China’s mainland, the aerial refueling resolved the J-10’s flying limitation.

The International Herald further commented that this is a milestone for China’s Air Force to go beyond land-based defense, an announcement that China will expand its control of the air and sea, and a demonstration of China’s joint combat capability between the Air Force and the Navy as the J-10 is taking on what is traditionally the Naval Air Force’s responsibility.

Source: International Herald, August 3, 2009
http://news.xinhuanet.com/herald/2009-08/03/content_11815461.htm

Briefings | | |   Defense/Military

China Deputy Foreign Minister: 75 Event Is a Criminal Act Planned by Overseas Forces

He Yafei, the Deputy Foreign Minister of China, re-stated on July 22, that the “75” (July 5) event in Xinjiang is China’s domestic affair. Fundamentally, it is not a race issue, nor a religion issue, but a severe violent criminal act carefully planned and organized by the overseas “three forces” (a term used by the Chinese government to refer to terrorists, separatists, and religion extremists – Ed).

He stated that Rebiya Kadeer conducts activities outside China, including in the US, to divide China. “The Chinese are fully aware of this. The US should also be fully aware of it. (I) hope the US restricts Rebiya from using US land to conduct separation activities (against China).”

Sources: Xinhua, July 23, 2009
http://news.xinhuanet.com/video/2009-07/23/content_11761729.htm

Briefings | | |   US-China Relations

JNOC News: China’s New Diplomacy Direction

China News Agency quoted a report from Japan New Overseas Chinese News (JNOC News), on Hu Jintao’s speech at the 11th Conference of China’s Diplomatic Envoy to Foreign Countries. JNOC News stated that Hu’s speech has given direction for China’s new diplomacy approaches. Diplomacy activities will focus on six areas: economic development, national security, targeted large countries, culture promotion, rights protection (for overseas Chinese), and harmony.

On National Security, Hu stated that diplomacy should firmly safeguard national sovereignty, territorial integrity, and interests. The core is the “One China” principle. That’s Chinese diplomacy’s “red line” that can’t be crossed. It is believed that China will be more aggressive against the Dalai Lama and Xinjiang separatists and pressure their international space. As for the South Sea, China will be firm on any area of land or water, but might exercise control to avoid escalating a situation to cause regional instability.

On rights protection, China wants to extend its influence to develop networks and protect the rights and interests of Chinese citizens and overseas Chinese (people with a Chinese origin but of other nationalities). “Our brothers are all over the world.” “(Let them) come to the Chinese Embassy or Consulate when they run into problems.”

Source: China News Agency, July 22, 2009
http://www.chinanews.com.cn/hb/news/2009/07-22/1786127.shtml

Briefings | | |   Government/Politics

10,000 Factory Workers Protest Merger; executive killed

On July 24, over 10,000 workers from the Tonghua Iron and Steel Group (TISG), Jilin Province, protested the government’s decision to allow a private company, the Jianlong Group, to take control of the company. Jianlong’s newly appointed General Manager, Chen Guojun, who threatened to fire all current employees, was beaten by angry workers and died. The Jilin Province government immediately announced that the merger would stop. Workers used firecrackers to celebrate their "victory".

In 2005, Jianlong owned 36% of TISG. But it experienced a huge loss in 2008. In Q1 2009, its loss was 1 billion yuan. Jianlong managed to exit from TISG. TISG immediately became profitable. By June 2009, it had 60 million yuan in profit. In July, Jianlong managed to take back ownership of 60% of TISG. That triggered the event. It’s a failed M&A instance of a private firm trying to acquire a state-owned enterprise. Employees are leery about the government selling the nation’s properties and ignoring the workers’ interests. There is also a question about Jianlong’s ability to easily exit from TISG, and then regain ownership of TISG.

Source:
[1] BBC Chinese, July 28, 2009
http://news.bbc.co.uk/chinese/simp/hi/newsid_8170000/newsid_8171700/8171701.stm
[2] Epoch times, July 26, 2009
http://www.epochtimes.com/gb/9/7/26/n2602653.htm

Briefings | | |   Social Stability

Xinhua: Xi Jinping Hints that the Xinjiang Party Officials Are Responsible

Xinhua reported that Xi Jinping, a member of the Politburo Standing Committee and Vice President of China, implicitly criticized Xinjiang Party officials as being responsible for the unrest, especially the events of July 5. Xinhua linked the two studies that Xi Jinping conducted recently, one in Xinjiang Uighur Autonomous Region from June 17 to 21, and the other in Liaoning Province from July 6 to 8.

The article states, “Xi Jinping repeatedly stated ‘The key to resolve the Xinjiang issue is the Communist Party’ (in Xinjiang). In fewer than 20 days he has repeatedly urged strengthening the Party (and stated) ‘the cadre team is the most important’ (in Liaoning this time). Especially since Xi conducted research in Liaoning after the Urumqi, Xinjiang riot on July 5, we can see the high expectations the Party’s Central Committee has for cadre teams to have a strong ideological grounding, good moral standards, good administrative ability and a solid work style.”

Source: Xinhua, July 9, 2009
http://news.xinhuanet.com/politics/2009-07/09/content_11680693.htm

Briefings | | |   Government/Politics