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Geo-Strategic Trend - 153. page

Huanqiu: Will a Warmer Russia-U.S. Relationship Affect China’s Closeness to Russia?

Huanqiu (Global Times) published an editorial discussing the impact of Trump’s winning the election on China’s relationship with Russia. Below are excerpts from the article:

“The international strategic community is forming a kind of expectation. Because of Trump, the U.S.-Russian relationship will improve. This expectation is not only based on Trump and Putin’s interaction. It is also based on the following analysis: First, Obama’s opposition to Putin has gone too far; therefore, a back swing itself has a high probability. Second, Trump has expressed a preference for placing a priority on domestic policy. Easing the relations with big countries can reduce external constraints.”

“As China, the United States, and Russia have long been regarded as a ‘big triangle’ in international relations, to what extent the Russia-U.S. relations will improve and whether they will have an impact on intimate Sino-Russian relations formed in recent years, has become the next extension of the topic.”

“First of all, it is not normal for Russia-U.S. relations to be highly strained and for the United States to lead the Western countries in imposing sanctions on Russia. If the relations between the two countries improve somewhat, it will not affect China’s interests. The starting point for improving relations between Russia and the United States is obviously not to ‘deal with China.’”

“For a fundamental change to occur in Russia-U.S. relations, some of conditions that contribute to their opposition need to be removed, including: the United States to ease NATO’s eastward expansion strategy; to stop the deployment of medium-range missiles in Eastern Europe; not to increase or even to withdraw NATO forces; to recognize Russia’s interests regarding the Ukraine issue; to strengthen coordination on the Syria issue; and to reach a compromise on the future of the Assad regime. It now appears that Washington has little room to recede. Moscow has been pressed into a corner and has almost no room to take a step back. The European allies of the U.S. are worried about having “Washington ‘abandon’ them.”

“A series of long-term factors have contributed to the close relationship between China and Russia. The strategic benefits such relations have brought to the two countries have been very stable. Sino-Russian cooperation is completely positive for Moscow. It is not through the exchange of a special price Russia has to pay. Therefore, Russia does not have a reason to develop the Russia-U.S. relationship at the expense of the Sino-Russian relationship.”

“A pattern of forces determines the basic form of the China-U.S.-Russia triangle. Its primary operational formula is to achieve a balance of power and of the situation. When the United States is in the strongest position of the three parties and also takes the most obvious offensive position, it is logical in international politics that China and Russia will become closer. Under normal circumstances, the better the Sino-Russian relationship is, the more flexibility each side will have to develop its own relations with the United States.”

“In this triangle, Sino-Russian relations will certainly be the most stable bilateral relations for a long time into the future. These relations experienced the test from Yeltsin’s era to Putin’s. During this period, Russia has gone from jumping into the West to becoming an enemy of the West. If Sino-Russian relations are solid, the two countries will be able to support each other back-to-back, and shake hands with other countries without a burden. [We] believe that the leaders of the two countries and the diplomatic elite groups will cherish the situation created by the joint efforts of China and Russia.”

Source: Huanqiu, November 16, 2016
http://opinion.huanqiu.com/editorial/2016-11/9683379.html

Taiwanese President Tsai Ing-wen Called National Security Meeting on the Post-US-Election Strategy

Major Taiwanese newspaper Apple Daily reported that Taiwanese President Tsai Ing-wen organized a top-level meeting in the evening right after the final result of the U.S. election was reported. Tsai Ing-wen listened to the reports from the top executives of the State Council and the Secretary of the National Security Council. She asked the response team to take action in order to maintain the stability of the financial market and to keep close ties with Trump’s transition team. The Taiwanese Presidential spokesman told the press that President Tsai Ing-wen has confidence in the new Trump administration since traditionally the U.S. Republican Party has supported a positive relationship with Taiwan. She expects a win-win situation in the U.S.-Taiwan relationship based on mutual interest and values.

Source: Apple Daily, November 9, 2016
http://www.appledaily.com.tw/realtimenews/article/new/20161109/985579/

The Korean Economy Is in Critical Condition

Well-known Chinese news site Sina recently reported that, coupled with President Park Geun-hye’s scandal crisis, Korea’s key supporting industries are suffering a landslide that has put the Korean economy into a deeply troublesome condition. Korea’s shipbuilding industry is critical to the lifeline of the economy, yet, since June, the three major shipbuilders have added a headcount of 25,000 to the nation’s unemployment total. So far the shipbuilding industry has suffered a 13 percent decline year-over-year. Another major collapse was in the electronics industry, brought on by the explosions of the Samsung Galaxy Note 7 cellphones. Samsung alone provides 20 percent of Korea’s GDP and tax income. Korea’s electronic industry has a 20 percent share of the nation’s total exports. Some experts have expressed the belief that Korea’s GDP growth will drop to 2.2 percent, which is close to the low point of the 1998 Asian Financial Crisis.

Source: Sina, November 2, 2016
http://finance.sina.com.cn/stock/usstock/c/2016-11-02/doc-ifxxneua3926096.shtml

Xi Jinping: The People May Overturn the Government If the Taiwan Independence Issue Is Not Handled

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that Chinese President Xi Jinping delivered several unscripted messages during the summit with the visiting Taiwanese Kuomintang (KMT) Chairman Hung Shiu-chu in Beijing. When Xi expressed his determination to counter the idea of an independent Taiwan, he advised that “the Chinese people would overturn the government” if the Communist Party did not handle this independence issue. Xi mentioned that both the Mainland and Taiwan share the same traditional Chinese culture and he had high confidence in this shared cultural background. He also said China is very proud of its economic growth in the recent decades and is willing to share the fruits of this growth with Taiwan. Xi mentioned the goal of eliminating poverty in the Mainland by 2020 and that the improvements in the people’s living conditions should be at the “Nobel Prize winning level.”

Source: United Daily News, November 2, 2016
http://udn.com/news/story/10482/2062897

China Quietly Held the Central Hong Kong and Macao Working Conference

One of Hong Kong’s major pro-Beijing newspapers, Ming Pao, recently reported that it seems the central government secretly held the Hong Kong and Macao Working Conference from July 11 to July 12. There was no official report on this typically important conference before or after the event. The information was unintentionally leaked via the websites of the Bureau of Security Monitoring and the Bureau of Quality Supervision and Administration of Beijing’s Haidian District. These two bureaus were involved in the logistics of the Conference and reported some details in their running status news on their websites. There was no official report on any activity of President Xi Jinping for July 11. The Central Hong Kong and Macao Coordination Team leader Zhang Dejiang and his deputies – Li Yuanchao and Yang Jiechi, Director of the Hong Kong and Macao Office – Wang Guangya, as well as Zhang Xiaoming (Director of the Liaison Office of the Central Government in Hong Kong) and Hu Chunhua (Guangdong Provincial Party Secretary) all made no mention in public media of any activities during those two days in July. China has central government level working conferences for Taiwan, Tibet and Xinjiang – to discuss major policies and strategies in these regions. This was the first time to have one for Hong Kong and Macao.

Source: Ming Pao, October 26, 2016
http://news.mingpao.com/pns/dailynews/web_tc/article/20161027/s00012/1477504758888

Germans Are Apprehensive about Chinese Acquisitions of German Companies

Well-known Chinese news site Sina recently published two articles on the rapid growth rate of the number of acquisitions Chinese companies have been making in Germany. Recent statistics show that, as of the present time, Chinese buyers have acquired around 200 German companies. The acquisitions are mainly in the automobile, mechanical manufacturing, electronics, and injection molding industries. The German economy was slowing down after 2011 and that provided the opportunity for the Chinese to buy financially troubled German companies. The German Ministry of Economic Affairs has recently been asked to protect the domestic high-tech companies from having unwanted buyers acquire them, especially those from non-EU countries. Germany recently proposed a set of EU-level investment screening rules. Any EU government would be allowed to block any acquisition seeking over a 25 percent stake in a company. The rules also add more restrictions if the investor is state-subsidized or state-owned, or if the investor is from a country that has market-entry restrictions against German investors. Not long ago, the Chinese government established a new strategy called, “Made in China 2025,” which is behind all these Chinese acquisitions. The new strategy is apparently modeled after the German “Industrial 4.0” strategy.

Source: Sina, October 23, 2016
http://finance.sina.com/gb/usstock/sinacn/20161023/17271513368.html
http://finance.sina.com/gb/economy/sinacn/20161023/21031513533.html

BBC Chinese: Former General Proposed Reunification of Taiwan by Force

BBC Chinese recently reported that Wang Hongguang, former Deputy Commander of the Nanjing Military Region, wrote a strategy paper proposing that the Mainland military initiate preparations for an armed invasion for the reunification of Taiwan. Wang stated that, after she took office, newly elected Taiwanese President Tsai Ing-wen refused to mention the “One China Principle.” Instead, she repeatedly said things like, “Taiwan will not yield to China’s pressure.” According to China’s Anti-Secession Law, one of the conditions for an armed invasion is “the disappearance of the possibility of a peaceful reunification.” Wang declared that the Mainland will never “swallow the bitter fruit” of an independent Taiwan. However, analysts in Taiwan expressed their belief that it’s very unlikely the Mainland will conduct any meaningful military attacks any time soon, since China just started its military reforms at the beginning of the year, changing seven “military regions” to five “military theaters.” Major changes like this will require significant readjustments in organization, tactical strategy, and equipment. Given the size of the Mainland military, the adjustments will not be completed and the military will not be ready for war until after 2020.

Source: BBC Chinese, October 21, 2016
http://www.bbc.com/zhongwen/simp/china/2016/10/161021_taiwan_china_military

UDN: Kim Jong-un Did Not Show Up for North Korean Party Anniversary

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that North Korean dictator Kim Jong-un did not attend any of the traditional ceremonies that were held on October 10 for the 71st Anniversary of the North Korean Workers’ Party. None of the North Korean official news media reported Kim’s whereabouts for that day. In the past years, the nation typically had a Report Conference of the Central Party Assembly one day before the Anniversary Day. However, this year there has been no mention of it so far. Labor News, the official newspaper of the Workers’ Party, did report that, on the Anniversary Day, some high ranking officials presented flowers in Kim’s name at the Fairview Hill Sun Palace. North Korea just completed a nuclear test in September and between October 10 and October 15, South Korean is having a joint military exercise with the United States.

Source: United Daily News, October 11, 2016
http://udn.com/news/story/6809/2016618