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Geo-Strategic Trend - 182. page

China Three Gorges to Buy Brazil Power Assets

On Tuesday, August 25, the São Paulo-based firm and Brazilian group, Triunfo Participações e Investimentos (TPI) announced that it had agreed to sell a controlling stake in three energy subsidiaries to China Three Gorges for up to 1.9bn reais (US$538 million).
In a statement, Triunfo said the divestment included all of its shares in Rio Verde Energia, Rio Canoas Energia, and Triunfo Negócios de Energia. Triunfo added that the deal is for 970mn reais plus 770mn reais in debt, with an additional 148.5mn reais payable "upon the achievement of certain events."
Rio Verde Energia is operator of the 116MW hydropower plant of the same name in Goiás state while Rio Canoas is responsible for the 192MW Garibaldi plant in Santa Catarina. Triunfo Negócios de Energia is involved in power trading. According to Triunfo, the operation is subject to conditions and approval from local regulators.
Excluding the latest acquisition, China Three Gorges Brazil holds interests in three hydropower plants and 11 wind farms totaling 687MW of installed capacity.
Source: Xinhua, August 26, 2015
http://news.xinhuanet.com/fortune/2015-08/26/c_1116381781.htm
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Xinhua: The Philippines Is Determined to Reopen the Subic Bay Base

Xinhua recently reported that the Philippines’ Defense Secretary stated that, even if the United States military won’t be able to be stationed at Subic Bay, the government has decided to rebuild and reopen the military base for its own military. The Subic Bay Base used to be the United States’ largest overseas military base. The U.S. closed and left the Base in 1992. In order to support the activities in the South China Sea, last year the Philippines government signed an agreement with the United States for its temporary use of the Base. The Philippines left-wing political party filed a claim in the Supreme Court charging that the agreement was a violation of the nation’s Constitution. The case is still pending a Supreme Court final ruling. Subic Bay is an ideal location for a naval base. Its location is strategic to the South China Sea region. Currently it is a free port, but the local authorities had an agreement with the domestic military to rebuild part of the military base for the Navy and the Air Force. The Defense Secretary of the Philippines called the nearby Chinese activities “a threat,” and that’s “why the U.S. presence is needed.”
Source: Xinhua, August 15, 2015
http://news.xinhuanet.com/world/2015-08/15/c_128132224.htm
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Qiushi Theory: How Close Can the U.S. and Vietnam Relationship Be?

Qiushi Theory carried an article on the U.S. and Vietnam relationship. It relied heavily on quotes from an interview with Yuan Zheng, Deputy Director of the Division of American Foreign Policy Studies at the Chinese Academy of Social Sciences. The article said that the relationship between the U.S. and Vietnam is warming up due to the economic and strategic benefits that both countries are seeking from each other. According to the article, the amount of goods traded both ways between the U.S. and Vietnam has increased from US$450 million in 1995 to the current annual amount of US$36 billion. In addition to maintaining the U.S. as the largest export market for clothing and shoes, Vietnam also wishes to benefit from the Trans-Pacific Partnership that the U.S. is working on. From a strategic perspective, Vietnam is trying to use the U.S. to balance China, while the U.S. effort to improve its relationship with Vietnam is an important part of the U.S. Asia and Pacific strategy. The article said that differences still exist between the U.S. and Vietnam as the U.S. will use human rights as an excuse to control Vietnam. Meanwhile there is no independent union in Vietnam, which will be a disadvantage for Vietnam during the Trans-Pacific Partnership negotiations. The article also predicted that Vietnam still has reservations about the U.S. and that it is unlikely that it will lean totally towards the U.S.

Source: Qiushi Theory, August 11, 2015
http://www.qstheory.cn/international/2015-08/11/c_1116216614.htm

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Global Times: Russia and Japan Will Not Get Close Together

Recently, news about Russian-Japanese relations has repeatedly appeared in the media. Talking about whether a closer relationship between Russia and Japan will damage China’s interests, Wang Haiyun, senior adviser at the Chinese Institute of International Strategic Association, expressed the belief that Russia and Japan will not really come together. He listed the following reasons as the basis for his opinion: 

First, the strategic interests of Russia and Japan are in conflict. Russia is an emerging big non-Western country, while Japan is a developed country which has boasted that it is an important member of the Western powers. Russia’s biggest security threat comes from the U.S.-led military alliance system, while Japan plays a very active role in the alliance system. 
Second, there is a huge difference between Japan and Russia’s strategic ideals. Russia values a multipolar world, democratization of international relations, and a diversified world civilization. It strongly advocates the establishment of a just and rational international political and economic order and safeguards the principle of non-interference in the internal affairs of sovereign states and the principle of an independent development path. Japan, on the other hand, has closely followed the U.S. which has repeatedly and brutally been destroying these major principles. 
Third, there are many strategic contradictions between Japan and Russia. The territorial dispute between Russia and Japan is a dead knot. 

All in all, there are many structural contradictions between Russia and Japan. Although relations between the two countries may be easing, they definitely will not get very close. It is reasonable to be vigilant to the risk that closer Russia-Japan relations may harm China’s interests, but there is no need to worry too much. 

Source: Huanqiu (Global Times), July 29, 2015 
http://opinion.huanqiu.com/opinion_world/2015-07/7129964.html

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Xinhua: Japanese Media Are Turning Right

Xinhua published a commentary stating that, since the beginning of this century, Japanese media have been turning right, following the political right-wing development. They exaggerate the “China Threat” and advocate populism, thus providing excuses for Abe to amend the Constitution to allow military expansion. 

The commentary alleged that the Japanese media make misrepresentations when reporting on China related events. It cited the September 2010 incident in which a Chinese fishing boat collided with a Japan Coast Guard patrol boat near the Diaoyu Islands and also the news reporting on the South China Seas dispute. 
The commentary further alleged that, since 2013, books that criticize China and South Korea have been selling fast. It has become a fashion in the publishing business to publish such books. 
Lastly, the commentary stated that new online media have also been following suit and are increasingly vocal about their dislike of China. In particular, the online media dedicated to China news are keen on picking negative news about China to demonstrate “their superiority over China or their hatred of China.” These reports are often reproduced on Yahoo in Japan, further amplifying the adverse effect. 
Source: Xinhua, July 31, 2015 
 http://news.xinhuanet.com/world/2015-07/31/c_128076805.htm
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Xinhua: In Defense White Paper, Japan’s Ulterior Motive Is to Stir Up the “China Threat”

Xinhua published an article on its headline news denouncing the Japanese government’s approved Defense White Paper (2015 edition). The article stated that the purpose of the white paper is to stir up the "China threat" and create a tense atmosphere so as to strengthen Japan’s security policies, develop its defense system, and find an excuse for a closer Japan-U.S. military alliance. 


The article said that "the volume of the white paper this year was the smallest in the last 10 years, but the China-related contents have increased rather than decreased. Attacking China has intensified as well." 

"Unlike previous years, this year’s white paper placed the China ‘threat’ in a prominent position. Furthermore, for the first time this year, the white paper set up a separate section called ‘Maritime Trends,’ making a big fuss about maritime security issues and making the accusation that ‘China’s unilateral action is undermining the principle of freedom of navigation.’"

"The white paper also instigated, for the first time, the issue of the South China Sea islands and reefs. In addition, it published a set of high-definition pictures to show that China is building islands from the reefs, creating an excuse for Japan to intervene on the South China Sea issue." 

"In the white paper, the Japanese government constantly repeated that ‘the security environment is getting more severe by the day and China has become the biggest threat,’ paving the way for the ‘expansion of the role of the Self Defense Force.’" 

Gao Hong, deputy director of the Institute of Japanese Studies at the Chinese Academy of Social Sciences, stated that the Japanese right-wing forces recently refused to recognize their history, provoking the redline of Asian security and stability. It does this by spreading [the rumor] that the external security environment is deteriorating and China is its "enemy." The purpose is to confuse the public and hide its ever-expanding military ambitions. 

Source: Xinhua, July 22, 2015 
http://news.xinhuanet.com/world/2015-07/22/c_1116010371.htm

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Global Times: Turkey May Still Purchase Chinese Red Flag 9 Missiles

Global Times recently reported, based on media content in Turkey, that Turkey may still buy Chinese missiles even if Turkey is willing to use American or European weapons. Since the U.S. and the EU suppliers did not meet Turkey’s standards, Turkey is prepared to accept the Chinese offer in a year, unless the U.S. or EU bidders make changes to abide by the standard that Turkey set. Turkey selected the Chinese supplier for its defense system but never signed the contract, since the United States and NATO expressed concerns about safety and satellite compatibility issues regarding the Chinese products. The Chinese supplier agreed to develop and manufacture the weapons jointly with Turkey.
Source: Global Times, July 18, 2015
http://mil.huanqiu.com/observation/2015-07/7038640.html
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Ukraine Has Become China’s Largest Corn Supplier

Well-known Chinese news site Sina recently reported that according to the latest statistics from Customs, China imported 403,881 tons of corn from Ukraine in May. This caused the total amount of corn imported from Ukraine to reach 1.55 million tons so far this year (as of May). That volume was near 90 percent of China’s total corn imports. China has been trying to establish the strategy of diversifying its supply sources for food and oil seeds. Since 2012, China has had in place a US$3-billion “loan for corn” agreement with Ukraine, which quickly became China’s largest corn supplier. Until the end of last year, the United States was China’s largest corn supplier. In the first five months of this year, the import volume from the United States sharply dropped by ninety-five percent. With a tougher relationship with Russia, Ukraine’s struggling agriculture is getting more and more dependent on China’s need for cereals and meat. U.S. senior economist Fred Gale suggested that this trend is in line with China’s strategy of investing in some of the “neglected regions.”
Source: Sina, July 6, 2015
http://finance.sina.com/bg/economy/sinacn/20150706/16421292316.html
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