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Global Times: High-Ranking Vietnamese Official Berates Chinese Company

Global Times recently reported that the Vietnamese Minister of Transportation went on national TV to berate the representative of a Chinese company. The company was responsible for a light rail project which caused an accident in which someone died. After that the Vietnamese government sent a diplomatic note to the Chinese Embassy in Vietnam and threatened to blacklist this Chinese construction company. The Vietnamese Minister asked the Chinese company to replace the Chief Executive and the Advisor on that project with Vietnamese citizens. The Vietnamese national TV report had a large number of viewers and the publicity was very damaging. The light rail project was based on a priority loan of US$300 million that China provided. The new incident has apparently cast a negative shadow on the already unfriendly relationship between China and Vietnam. 
Source: Global Times, January 10, 2015
http://world.huanqiu.com/exclusive/2015-01/5375506.html
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First China-CELAC Forum Ministerial Meeting Concludes in Beijing

The first ministerial meeting of the Forum of China and the Community of Latin American and Caribbean States (CELAC) concluded in Beijing on January 9 with the announcement that the forum’s next meeting will be held in Chile in 2018.
The two-day meeting, co-chaired by Chinese Foreign Minister Wang Yi and his Costa Rican counterpart, Manuel Gonzalez Sanz, passed three documents: the Beijing Declaration, a five-year cooperation plan, and the regulations for the China-CELAC forum. China and CELAC have also reached a consensus on deepening political mutual trust, expanding cooperation, and promoting development of the forum. Wang said that President Xi Jinping’s remarks at the opening ceremony will guide the development of the China-CELAC forum. Gonzalez said that the historical meeting has launched overall cooperation between China and the countries in Latin America and the Caribbean region, which will build a closer CELAC-China relationship.
Source: Xinhua, January 9, 2015
http://news.xinhuanet.com/world/2015-01/09/c_1113939483.htm
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People’s Daily: Japan Strengthens Naval Blockade over China

On January 7, People’s Daily reported on the Japanese government’s plan to strengthen its defense forces. In response to China’s growing naval power, Japan will officially launch its 2015 plan for the Southwest area. In an interview with CCTV, military experts said that the reason for the Japanese to launch this program is out of consideration of Abe’s policy and domestic economic situation. The plan for the defense program is to increase Japan’s defense deployment in the Southwest and its ability to control the sea and air. [As a result], the possibility of misfires between China and Japan will increase. 

Yang Bojiang, the Director of the Institute of Japan Studies at the Chinese Academy of Social Sciences, said that Japan has two reasons for launching its National Defense Program. The first is that Abe’s policy requires it. Abe has been implementing Japan’s "full normalization." Japan has made significant changes in its defense concepts, relevant policies, institutional settings, military deployment, and procurement of weapons systems. The second is that Japan is not optimistic about its current economic situation. It needs to use this program to handle its internal contradictions. 
In recent years, the Japanese have continued to strengthen their efforts to develop a naval blockade against China. Du Wenlong, a researcher at the PLA Academy of Military Sciences, noted that China has an urgent need for naval training. In the future, China’s underwater submarines and its surface or air combat fighter fleet will all pass through the first island chain. Japan also has military deployment in these areas and does not rule out the deployment of an air defense weapons system in the future. As a result, Japan will increase its frequency and its capacity to monitor and interfere with Chinese ships and planes. In response, China will carry out counter measures, causing friction and conflict. The scope and intensity of the friction will increase. 

Source: People’s Daily: January 7, 2015 
http://military.people.com.cn/n/2015/0107/c1011-26339168.html

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China Youth Daily: The United States Does Not Want to See a Close Inter-Korean Relationship

On January 7, 2015 China Youth Daily published an article criticizing the United States for imposing additional sanctions against North Korea (DPRK) following North Korea’s cyber-attack against Sony Pictures Entertainment.  According to the article, the relationship between North Korea and South Korean is getting closer thanks to Kim Jong-un’s warm New Year’s TV messages from the DPRK for two consecutive years. However, the US decision to impose unilateral sanctions against North Korea has “poured cold water” over the inter-Korean reconciliation atmosphere.

The article concluded that, from its strategic point of view, the United States does not want to see a close inter-Korean relationship. If the tension in Northeast Asia eases up, the United States will not have an excuse to ask South Korea to pay more military costs for US troops to reside there; the US will, in particular, lose its rationale for containing China. Through maintaining the tension on the Korean peninsula, the United States is able to maintain its influence in the Asia-Pacific region.

Source: China Youth Daily, January 7, 2015
http://zqb.cyol.com/html/2015-01/07/nw.D110000zgqnb_20150107_3-07.htm

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China News: South Korea, U.S. and Japan to Share Intelligence on North Korea

China News recently reported that an official (who would prefer to remain anonymous) of the South Korean Defense Ministry advised that the deputy defense ministers of South Korea, the United States, and Japan planned to sign a memorandum of understanding on sharing intelligence involving North Korea, especially on military topics like nuclear plans and guided missiles. The memorandum was set to be signed on December 29. The South Korean side emphasized that the intelligence sharing between South Korea and Japan will be communicated indirectly via the United States as the middle man. The Memorandum is not considered legally binding and does not require approval by the legislative branches of the three countries. 
Source: China News, December 27, 2014
http://www.chinanews.com/gj/2014/12-27/6916536.shtml
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Russian Oil Exported to China at 50 Percent Higher Price

Well-known Chinese news site Sina recently reported that, based on the data Bloomberg obtained from the China General Administration of Customs, the volume of Russian oil exported to China increased by 65 percent in November, reaching a record high monthly volume of 3.31 million tons. According to Bloomberg, the average price of these November exports was at US$90 per barrel. However, given the sharp decline in the oil price on the global market, the current standard for oil prices is below US$60. The Russian State Duma recently passed laws to cut the oil export tax. At a press conference earlier, Russian President Putin suggested that the Russian economy must adjust to the reality of oil prices staying at US$40. According to Chinese Customs records, China’s imports from the largest OPEC oil exporter, Saudi Arabia, were in their second consecutive month of decline, which is the equivalent of a 5.9 percent decline year-over-year. The Russian Ministry of Energy recently mentioned that, during January to September, Russian oil exports to China increased by 45 percent year-over-year. 
Source: Sina, December 24, 2014
http://finance.sina.com.cn/world/20141224/174421156026.shtml
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Global Times: Qualcomm May be Fined US$1 Billion

Global Times recently reported that the National Reform and Development Commission (NDRC) has been conducting an antitrust investigation against U.S. chip maker Qualcomm, who may be fined US$1 billion for abuse of its monopoly power. NDRC accused Qualcomm of price gouging and misusing its standard-setting power in the wireless communications market. According to Chinese antitrust laws, NDRC can fine the company in the range of 1 to 10 percent of its annual sales amount. As the largest wireless communications chip maker in the world, Qualcomm’s fiscal year 2013 sales income in the Chinese market was US$12.3 billion, which was half of its global sales total. China is in the process of upgrading its nationwide wireless network infrastructure to 4G technology, which requires Qualcomm-patented chips that are widely used in smartphones. Some analysts suggested that the Chinese antitrust move had the intention of influencing the negotiations on licensing the Qualcomm patents. 
Source: Global Times, December 26, 2014
http://china.huanqiu.com/News/mofcom/2014-12/5302952.html
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Li Keqiang: China Willing to Provide Financial Support to SCO Countries

On the afternoon of December 15, Chinese Premier Li Keqiang attended the 13th meeting of the Summit of the Shanghai Cooperation Organization (SCO) member countries in Astana, the capital of Kazakhstan. 

According to Russian media, Li announced at the meeting that China is willing to provide financial support to SCO countries to help them overcome the economic crisis.  The media also reported that Li further stated that China is willing to take such measures in bilateral cooperation with Kazakhstan and other SCO countries or partners, and that this effort will help these countries to deal successfully with the economic downturn and to modernize production. 
The SCO was founded in Shanghai in 2001. The SCO members are Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Iran, Afghanistan, Mongolia, Pakistan and India have observer status. Dialogue partners include Belarus, Sri Lanka and Turkey. 
Source: China Enterprises Investment Association, December 16, 
2014 http://www.ceia.cn/show.php?contentid=47887

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