Skip to content

All posts by RWZ - 205. page

CRN: The Value of Chinese Currency Is a Long-Term Concern

China Review News (CRN) recently reported that the Chinese currency (RMB) is suffering a very unusual valuation problem. It is depreciating internally and appreciating externally at the same time. All economists seem to agree that this is an obvious sign that demonstrates a loss of balance between China’s domestic economy and its exports. In the past eight years, the RMB to U.S. Dollar has appreciated over 35 percent. Meanwhile, for many years, the Chinese government has been maintaining a “monetary easing” policy. It has supported the government-investment driven growth model for more than a decade. With an aging Chinese society where savings are declining, coupled with high debt and manufacturing over-capacity, China’s currency policies are facing more and more challenges. The article’s author expressed the belief that the top priority for now is to control domestic inflation tightly and to increase the application of the market mechanism to the RMB exchange rate.
Source: China Review News, November 24, 2013
http://hk.crntt.com/doc/1028/8/3/8/102883850.html?coluid=53&kindid=0&docid=102883850&mdate=1124074319
Briefings | | |   Economy/Resources

BBC Chinese: U.S. Ambassador’s Resignation Triggered Widespread Discussion

BBC Chinese recently reported that the announcement of the resignation of Gary Locke, the U.S. Ambassador to China, immediately triggered a massive discussion on the Chinese Internet. Many netizens joked that Mr. Locke’s decision was largely based on the air quality in Beijing. The U.S. Embassy in Beijing started offering local PM2.5 pollution readings, which pushed the environmental protection topic to the top of China’s agenda list. Many netizens also “strongly complained” that Mr. Locke played a key role in major incidents that involved helping well-known human rights lawyer Chen Guangcheng flee China and in allowing the Chongqing Deputy Mayor Wang Lijun to enter the U.S. Consulate in Chengdu. Mr. Locke is also famous for his low profile style of spending taxpayer money, which contrasts significantly with the behavior of Chinese government officials. Some suggested that Mr. Locke might be getting ready to run for U.S. President, since he has accumulated enough experience in foreign relations, state governance, and running the federal-level Commerce Department. 
Source: BBC Chinese, November 20, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/11/131120_locke_resignation_weibo.shtml
Briefings | | |   US-China Relations

Xinhua: China Announced East China Sea Air Defense Identification Zone

Xinhua reported on November 23 that the Chinese government officially announced the East China Sea Air Defense Identification Zone. All aircraft that enter the Zone are required to identify themselves by providing their flight itinerary, always-on two-way radio, always-on radar transponder, and visual external identification of nationality and registration. The Zone is governed by the Chinese Defense Ministry. Any aircraft violating the rules will face the Chinese military’s “emergency handling procedures.” 
According to Global Times, the new Identification Zone covers the Diaoyu Islands, which are involved in a sovereignty dispute between China and Japan. The Japanese Ministry of Foreign Affairs issued a “solemn protest” to the Chinese ambassador to Japan.
BBC also reported that the United States Defense Ministry immediately issued an official statement expressing “deep concern” about this new development, calliing it an attempt to undermine regional stability. The statement also proclaimed that the U.S. will make no change in its military plans in the region.
Sources: 
Xinhua, November 23, 2013
http://news.xinhuanet.com/mil/2013-11/23/c_125750439.htm
Global Times, November 23, 2013
http://world.huanqiu.com/exclusive/2013-11/4594681.html
BBC Chinese, November 24, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/11/131124_us_china_japan.shtml
Briefings | | |   Defense/Military

BBC Chinese: IKEA Gave More Aid to the Philippines than China Did

BBC Chinese recently reported that China only provided minimal aid to the Philippines after that nation was hit hard by typhoon Haiyan. China’s commitment on aid totaled US$2 million. The United States promised US$20 million plus military missions involving an aircraft carrier fleet. Japan promised US$10 million in aid plus military help. Australia committed US$28 million. Even the popular furniture retailer IKEA donated US$2.7 million to the victims. China complained that China was hurt by the same typhoon as well. The Chinese government received mixed comments in the media. Singapore researcher Zhen Yongnian suggested that China is far behind the United States in terms of “soft power.” Some Chinese netizens even commented that the Chinese government was better to the Philippines than to its own people.
Source: BBC Chinese, November 14, 2013
http://www.bbc.co.uk/zhongwen/simp/world/2013/11/131114_china_philippines_aid_ikea.shtml
Briefings | | |   Geo-Strategic Trend

Xinhua: Chinese Foreign Aid Program Performs Outstandingly û Ahead of the U.S.

Xinhua recently reported that, in the recent disaster, China did not provide swift aid to the Philippines, while the U.S. military delivered immediate help in a very short period of time and on a large scale. However, the report suggested that this was an isolated case since the Chinese military does not yet have the capacity to provide such a level of aid and the Philippines might not welcome the Chinese military on their land anyway. The United States was just taking the opportunity to demonstrate its commitment to an ally that is important to the U.S. Asian strategy. China’s global aid program does not focus on natural disasters. Instead, the Chinese foreign aid program provides assistance to other nations’ development plans. China has been doing much better than the U.S. in areas such as offering low-interest or no-interest loans and building basic infrastructure in developing countries.
Source: Xinhua, November 14, 2013
http://news.xinhuanet.com/world/2013-11/14/c_125699206.htm
Briefings | | |   Geo-Strategic Trend

CRN: Chinese Military Unmanned Aircraft Deployed Nationwide

China Review News (CRN) recently published a report commenting on remarks that a Chinese general made. The general suggested that China would continue to send unmanned aircraft to certain areas with the full confidence of self-protection. The comment was made in response to the Japanese threat of shooting down Chinese unmanned aircraft. The report went further into an investigation on China’s actual capabilities in the area of unmanned aircraft and found that the Chinese military has completed deploying fleets of unmanned aircraft to all seven military regions. These unmanned aircraft fleets are composed of different types of unmanned aircraft that play different roles such as intelligence gathering, command control, and precise attack. The Chinese unmanned aircraft can now carry out all-weather and long-range military missions. The report also mentioned that the Chinese military is aiming to reach the same advanced level that the U.S. unmanned aircraft enjoy. 
Source: China Review News, November 14, 2013
http://www.zhgpl.com/doc/1028/6/5/9/102865972.html?coluid=4&kindid=18&docid=102865972&mdate=1114172715
Briefings | | |   Defense/Military

BBC Chinese: Chinese Netizens Doubt the Shanghai Government

BBC Chinese recently reported that the City government of Shanghai just announced that it will become a “government by law” within five years. The new announcement promised to change the role of the government dramatically, to improve the laws, to deliver better transparency, to encourage public participation in the political process, and to make Shanghai the regional government with the highest approval rating in the nation. The government claimed to have a detailed plan with a timeline. However no details have been released. The announcement triggered a widespread discussion online among Chinese netizens. Most of the comments online expressed doubt. Some suggested that, finally, the government admitted it is not based on the law. Some called for a deeper investigation into the recent scandal involving a group of Shanghai High Court judges caught on tape with prostitutes who a large state-owned company had paid. 
Source: BBC Chinese, November 7, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/11/131107_shanghai_government.shtml
Briefings | | |   Government/Politics

OPEC: The Chinese Automobile Market will Support an Increase in the Demand for Oil

Global Times recently reported that OPEC just adjusted its earlier long-term oil market forecast on market demand to show an increase. This is the first time in six years that OPEC has projected an optimistic forecast. The organization also re-estimated China’s automobile market size. OPEC expressed the belief that the world demand for oil will be 108.5 million barrels per day by the year 2035. The organization also estimated that China’s “vehicle parc” will increase by 380 million over the next 22 years. That will be the equivalent of every 1000 people owning 320 vehicles. This rate of increase is based on the same pace that Japan had in the 1990s. The OPEC report also expected that the Indian automobile market would show rapid growth. However the U.S. shale oil and the Canadian oil sands have been rapidly changing the landscape of the oil market, making today’s reality very much different from OPEC’s forecast made two years ago. 
Source: Global Times, November 8, 2013
http://finance.huanqiu.com/world/2013-11/4545717.html
Briefings | | |   Geo-Strategic Trend