Geo-Strategic Trend - 166. page

Well-known Chinese news site Sina recently reported that, last month, the China Electric Power Construction Group and the Malaysian government jointly held a groundbreaking ceremony to kick off the Melaka Gateway construction project. Melaka Gateway is expected to be a deep water port located on the west coast of the Malay Peninsula south of Kuala Lumpur. The plan is to make this new port city, composed of three islands, the “Number One Port at the Strait of Malacca.” The Strait is one of the most critical military and commercial pathways in the world. However, Singapore media have been criticizing the new port plan ever since the idea was announced. As the key holder of the Strait of Malacca, Singapore questioned the usefulness of having another nearby port city. Given the increasingly more military activities China held jointly with Malaysia, as well as China’s 99-year operational lease of the new port Melaka Gateway, Singapore expressed its doubts about China’s real purpose in helping to build the port. Recently, Singapore has been siding with the United States on containing China’s expansion in the region.

Source: Sina, November 21, 2016
http://finance.sina.com/bg/economy/sinacn/20161121/00191524973.html

China News recently reported that the police in Prato, a city in central Italy at the foot of Monte Retaia, conducted a massive search operation that involved immigration cases. It resulted in 15 arrests, with 83 people under further investigation. The immigration cases mainly involved documents that had been forged for Chinese immigrants. Prato is one of the cities with the highest number of Chinese immigrants in Europe. According to official records, the total population of Prato is 180,000, 16,000 of whom are Chinese immigrants. Locals, however, widely believe that the Chinese population is actually 50,000. Prato has devloped a very large garment industry and is one of the cities in Europe that is enjoying rapid economic growth. According to the Italian authorities, over 400 policemen were devoted to this recent operation aimed at cracking down on organized crime. Chinese President Xi Jinping made a short stop in Italy one day later.

On November 16, 2016 local time, President Xi Jinping met on Sardinia Island in Italy with Italy’s Prime Minister Matteo Renzi.

Source: China News, November 17, 2016
http://www.chinanews.com/hr/2016/11-17/8066071.shtml

Well-known Chinese news site Sina recently reported that Steven Ciobo, Australia’s Minister for Trade, Tourism and Investment, told the press that Australia plans to support China’s effort to reach new trade agreements in the Asia Pacific region. He explained that, according to the U.S. President Elect Donald Trump, it seems the U.S.-backed Trans-Pacific Partnership (TPP) agreement will be discontinued. TPP excludes China. Ciobo confirmed that Australia will support China’s Free Trade Area of the Asia-Pacific (FTAAP), which is expected to be discussed at the upcoming APEC Leadership Summit. He also mentioned that Australia intends to cooperate in the Chinese led effort to establish the Regional Comprehensive Economic Partnership (RCEP), which is a free trade agreement still under discussion. RCEP excludes the United States. Analysts expressed the belief that FTAAP will improve China’s influence in the region.

Source: Sina, November 16, 2016
http://finance.sina.com.cn/stock/usstock/c/2016-11-16/doc-ifxxwrwh4492769.shtml

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

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/

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