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Geo-Strategic Trend - 143. page

Outlook Article: China Should Invest Up To 1,000 Bn Yuan In Africa

According to Outlook Weekly, a Xinhua publication, a Government think tank proposed that China spend 500 to 1, 000 billion yuan of its foreign exchange reserve on Africa. The Director of the Center for Economic Security Studies of China’s Institute of Contemporary International Relations wrote that this funding infusion may be implemented through “direct investment, donations, low or zero interest loans, export financing or the Islamic model of zero interest in exchange for profit sharing.” The proposed primary areas of investment are infrastructure projects, improvement of sanitary conditions, education and manufacturing.

Source: Outlook Weekly, June 1, 2009

Adopting a Smart Foreign Diplomacy Strategy

Lianhe Zaobao in Singapore published an article by He Maochun, an International Relations Professor at Tsinghua University. He argued that neither of China’s hard power, soft power, or smart power is strong enough to make it a super power. Thus it should adopt a smart foreign diplomacy strategy to unify internal forces, align neighboring forces, and borrow far-away forces to counter Western countries’ pressure and containment.

He outlined six steps: 1. Develop a Greater China economic zone covering China, Taiwan, Hong Kong, and Macao. 2. Humbly rejuvenate the Great East Asia Chinese culture zone (China, Korea, and Japan). 3. Strengthen the political and economic power of the Shanghai Cooperation Organization. 4. Expand cooperation with the Association of South East Asian Nations (ASEAN) member countries. 5. Steadily move into Africa and Latin America. 6. Using the opportunity of fighting the global financial crisis with Western countries, try to resolve the following issues: stop arms sales to Taiwan; stop supporting the “separatists”; remove the technology and arms embargo for China; stop the “discrimination” against China’s overseas investments and protect the safety of China’s capital.

Source: Lianhe Zaobao, May 28, 2009

China News: China and Europe Hugging Each Other

China News published a report that Premier Wen Jiabao would go to Prague, Czech Republic on May 20, 2009 for the eleventh China-EU Summit. It stated that China and the EU are closely embracing each other.

The second China-EU High-level Trade and Economic Dialogue was held in Brussels on May 8, 2009. China sent senior officials from the Ministry of Commerce, Ministry of Foreign Affairs, National Development and Reform Commission, Ministry of Science and Technology, Ministry of Industry and Information Technology, Ministry of Finance, Ministry of Housing and Urban-Rural Development, Ministry of Transportation, General Administration of Customs, and General Administration of Quality Supervision, Inspection and Quarantine. The EU representatives were from the fields of business and industry, transportation, internal market, agriculture, consumer protection, customs, environmental protection, information society, and competition. With such a large number of participants, the meeting reached agreements in five areas, including implementation of the general agreement from G-20, anti-protectionism for trade and investment, encouragement for business to participate in each party’s economy development plan, joint support to small to mid-sized business development, and energy development and environmental collaboration.

China is the EU’s second largest trading partner.

Source: China News, May 17

International Herald: How Effective is Obama’s “Smile Strategy?”

"After Obama’s smile (during his G20 trip and Europe/Asia tour), if no concrete action follows up, maybe comic cartoons is the only place for his ‘signature smile’." Stated a commentary by the International Herald Leader on April 14.

The article said that Obama’s signature smile was successful but failed to solve problems. "The smiles cover up the embarrassment of the US and its unwillingness to take additional responsibilities," the article commented on the change of the body language of the current president,"… we will expect to see the US to be more modest and self-restrained as well as being flexible and smart… How long can his smiles last under the current domestic situation?" The article asks, "In the eyes of those conservative forces in the US, US interest takes superiority over others. It will not allow its hegemony to be challenged … The attack from the conservatives against Obama’s bow to the King of Saudi Arabia at G20 shows that it is not easy for the US to set down its haughty airs and smile with sincerity to the world."

Source: Xinhua, April 14, 2009

China to Loan $1bn in Exchange for Ecuador Oil

The state-owned China Development Bank will loan $1 billion to Ecuador to finance energy and infrastruture in exchange for Ecuadoran oil, reports Caijing, a top financial magazine in China. According to the agreement, the loan will be used mostly to help to finance oil, natural gas and potential hydropower projects that could boost energy production. Ecuador will provide mid to long term oil shipments as payment for the loan.

China has spent billions of dollars on energy and mining projects across Latin America in recent years in a bid to gain control over the oil, metals and other natural resources needed to fuel its economy.

Source: Caijing, April 7, 2009

Xinhua: Taiwan Reports on the Mainland’s Initiative to Invest in Taiwan and Other Media

Xinhua reported that, according to Taiwan media, Mainland China is encouraging Mainland media to invest in Taiwan media. On April 7, 2009, the General Administration of the Press and Publications of the PRC issued guidlines to further promote the reform of the Press and Publications.

Xinhua states, “According to Taiwan media, the Guidelines encourage Mainland media to go out and establish newspapers, journals, press houses, and printing shops through wholly-owned subsidiaries, joint ventures and cooperatives, and to expand their markets in Taiwan, Hong Kong, Macao and foreign markets.” “The Guidelines recommend that six or seven large mass media each with assets and sales exceeding 10 billion RMB be established over the next three to five years.”

Xinhua, April 7, 2009
General Administration of Press and Publication of the PRC, April 7, 2009

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