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Huanqiu: War and Sanctions Would Only Exacerbate the Crisis in Ukraine

WANG Haiyun, Vice President of the China Research Association of the History of Sino-Russian Relations, wrote an article commenting on the current Ukraine crisis. Huanqiu (Global Times) published the article and it was reposted on the Xinhua website. Wang stated that Russia will not bow to the pressure from the West and that the U.S. is the barrier that keeps China from offering help to resolve the crisis. 

Wang said, “[To resolve the crisis] by means of war is a great temptation for the Ukrainian government, especially when it is a matter of national territorial integrity. Asking Poroshenko to give up [fighting] is really difficult. The Ukrainian government must understand that trying to solve the problem in the Eastern region by war is hopeless. … The United States is the dominant force in launching and supporting the war. … As long as the United States and NATO do not send troops directly, Ukraine does not have a chance to win the war. The U.S. and Russia are fighting a war with proxies. The most unfortunate [casualty] is the Ukraine. If the war continues, Ukraine will be a ‘stateless nation.’ Several times, Putin has proposed unconditional truce talks. European powers also want to make the negotiations happen as soon as possible. It is indeed time for Ukraine to make the major decision independently as to whether to have war or peace.” 
Wang continued, “Sanctions cannot solve the Ukrainian crisis either. To use sanctions to pressure Russia into making concessions in disgrace on issues related to national core interests can only be wishful thinking. The U.S.-led Western powers repeatedly bring up the weapon of sanctions to a number of small countries, but when did anyone surrender because of sanctions?” 

Wang suggested that “The United Nations, the OSCE and other international mechanisms should act now. China should also make a gesture as a ‘responsible power,’ conduct active diplomacy, and be sure to encourage the parties to sit down as soon as possible to carry out an equal dialogue. Currently, the biggest obstacle may be the United States. The United States must recognize that, if such fighting and sanctions continue, it will ultimately undermine its own strategic interests. To achieve both containing Russia and holding Europe under control is unrealistic. European powers should jump off as soon as possible from America’s ‘chariot,’ not continue to be kidnapped by the Americans, and not do the kinds of stupid things that will result in the self-destruction of their own home.” 

Source: huanqiu, September 2, 2014 
http://opinion.huanqiu.com/opinion_world/2014-09/5124824.html
http://news.xinhuanet.com/mil/2014-09/02/c_126944362.htm

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Security Times: Breakthroughs in China’s Diplomacy on Finance

On August 28, a scholar from the Chinese Academy of Social Sciences published an article on the Shenzhen based Security Times titled, "Breakthroughs in China’s Diplomacy on Finance." Some translated excerpts follow.
"In recent years, the bright spot in China’s diplomacy in the financial area is its performance at the G20 summit as a major developing country. China thus entered the inner circle of global economic governance, with its influence continuing to expand."
"In the field of international finance, China has been pushing two initiatives. The first is to continue to expand the scope and scale of bilateral currency swaps. As of the end of May 2014, China had signed currency swap agreements with 23 countries and regions, amounting to 2.567 trillion yuan ($0.41 trillion). The second is to build an Asia Infrastructure Investment Bank and the BRICS Development Bank to provide financial support to the economic development of the region and to other developing countries. Initiatives advocated by China also include a regional foreign exchange reserve, with China as the largest contributor, and the establishment of the Shanghai Cooperation Organization Development Bank."
"The 2008 financial crisis highlighted the serious flaws in the international monetary system with the dollar as the main reserve currency and also discredited the Washington-led model of the global economic governance system. The majority of developing countries are eager to reform the global economic governance system, especially the global monetary system. The G20 summit mechanisms in recent years have made useful attempts, but the G20 decision to reform the IMF and the World Bank’s quota and voting shares stalled because the U.S. Congress disapproved."
"China’s plan to build the Asia Infrastructure Investment Bank (AIIB) has seen substantial progress. It is understood that the AIIB may raise capital from the initial proposal of $50 billion to $100 billion, which is not far from the Asian Development Bank’s $165 billion fund size. However, the parties have yet to reach an agreement. The AIIB’s funds will be used for infrastructure in Asia on projects that may include the new Silk Road connecting Asia and Europe. Twenty-two Asian countries, including a few Middle Eastern countries, have expressed a strong interest in this project. China has had in-depth discussions with Southeast Asian, Middle Eastern, and European countries and Australia, and is in contact with the United States, Japan and India."
"In mid-July, the BRICS summit was held in Brazil. The parties have a solid anticipation that the BRICS Development Bank, headquartered in Shanghai, will become a reality."
"As we all know, the Federal Reserve, Wall Street, the IMF and other organizations are part of the dollar hegemony. For the developing countries to change the global financial landscape, they need to break through the institutional barriers in order to counterbalance the dollar hegemony. The BRICS countries’ establishment of foreign exchange contingency arrangements and a development bank will have a profound practical and historical significance for actively participating in global financial governance and reforming the international financial system."
Source: Security Times, August 28, 2014
http://epaper.stcn.com/paper/zqsb/html/2014-08/28/content_607308.htm
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China Economic Times: Wield the Carrot and the Stick in South China Sea Oil Development

On August 27, an official from the China Petroleum Enterprise Association published an article on China Economic Times titled, “(China) needs to wield both the carrot and the stick in South China Sea oil development.” In May of 2014, in order to perform oil and gas exploration, China, for the first time, moved its giant oil rig into the South China Sea. The placement was 120 miles from Vietnam’s shore and was within Vietnam’s continental shelf and its Exclusive Economic Zone (EEZ). In the middle of July, China moved its oil rig out of the area. The China Petroleum Enterprise Association official stated in his article that the aggressive and victorious “move in” and “move out” was a declaration of China’s “oath.” That is, China made the statement, “I have the sovereignty.” “This is my place. … I have my reasons for coming and going. Others have no right to point fingers or make any irresponsible remarks.”

The article concluded that, when facing such a complicated dispute, China can, while wielding the stick, also offer some carrots. That is, we can hide our capabilities and bide our time. Using the premise that we have sovereignty over the South China Sea, when we take the initiative to do self-development, China does not need to exclude others from joining us for co-development. By offering opportunities for cooperation, China can force the opponent back to the negotiating table and eventually realize joint development. In some highly disputed areas in the South China sea, China can unite foreign oil companies for co-development. If the conditions permit, China should actively push forward joint venture development between China’s state-owned oil companies and Taiwanese oil companies.

Source: China Economic Times, August 26, 2014
http://www.cet.com.cn/ycpd/sdyd/1291751.shtml

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Chinese Ambassador to Russia on Sino-Russian Cultural Engagement

On July 31, Li Hui, the Chinese Ambassador to Russia published an article on People’s Daily about the cultural exchanges between the two countries.
"Since the collapse of the Soviet Union, China and Russia have further deepened bilateral cultural exchanges. By setting up several working mechanisms and signing a series of cooperation documents, they have promoted and ensured Sino-Russian cultural relations at the political and legal level. There have been four main achievements."
"The China-Russia Committee on Humanities Cooperation. In 2000, this organization’s predecessor, the Sino-Russian Cooperation Committee on Education, Culture, Health, and Sports (SRCCECHS), was set up under a regular meeting mechanism between the Chinese premier and Russian Prime Minister. In 2007, with ever growing cooperation, SRCCECHS was renamed the China-Russia Committee on Humanities Cooperation."
"Cooperation packages between the Ministries of Culture in both countries. In December 1992 in Beijing, the leaders of both countries signed the "Agreement of Cultural Cooperation between the Governments of the People’s Republic of China and the Russian Federation." This agreement became the guiding paper on the cultural exchanges between the two countries. Under this framework, the Cultural Ministries of the two countries signed 10 cultural cooperation plans. At present, the two ministries are implementing the "2014 – 2016 Cooperation Plan between the Ministry of Culture of the People’s Republic of China and the Ministry of Culture of the Russian Federation."
"The Reciprocal Establishment of Cultural Centers. In October 2009, the "Agreement between the Government of the People’s Republic of China and the Government of the Russian Federation on the Reciprocal Establishment of Cultural Centers" was signed in Beijing. The Russian Cultural Center was launched in Beijing in September 2010, and Chinese Cultural Center in Moscow opened in December 2012."
"Cultural activities as major diplomatic events. In 2006 and 2007, China and Russia held the reciprocal event, "Year of the Country." The leaders of both countries attended both the opening and closing ceremonies. Since then, China and Russia have launched large-scale cross-nation activities using the mechanism of mutual visits between the leaders of the two countries. In 2009 and 2010, both countries held reciprocal events, the "Year of Language" in 2012 and in 2013, the "Year of Tourism." 
Source: People’s Daily, July 31, 2014
http://world.people.com.cn/n/2014/0808/c1002-25430950.html
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Xinhua News Agency Signs Cooperation Agreement with a Spanish Think Tank

On August 7, Xinhua News Agency and the Observatory of Chinese politics (OPCh), an affiliate of the Spanish think tank the Galician Institute of Analysis and International Documentation (IGADI), signed a friendship and cooperation agreement. Under the agreement, "the two parties will cooperate in publishing analyses of China’s political and economic policy and social hot issues that concern foreign readers, offer in-depth interpretations, and thus enable the world to improve its understanding of China." Wang Chaowen, the European chief of Xinhua and Julio Rios, the Director of OPCh, signed the cooperation agreement. The Chinese Ambassador to Spain Zhu Bangzao attended the ceremony. "The Chinese policy observation center" and its website were established in 2000, for the purpose of studying and analyzing the Chinese legal system, political trends, national defense, ethnic minorities, human rights, and foreign policy.
Source: Xinhua, August 8, 2014
http://news.xinhuanet.com/2014-08/08/c_1112001469.htm
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Yin Zhuo: Japan’s Defense White Paper Clearly Expresses that China Is Japan’s Top Opponent

On August 5, the Japanese government approved its Defense White Paper (2014 edition). Chinese military expert Yin Zhuo, major general and director of the Navy Expert Committee on Information Technology, stated that Japan’s Defense White Paper clearly communicated to the outside world that China is Japan’s number one competitor and top opponent. If future wars explode, China will be Japan’s main combat objective. 

Yin Zhuo stated that [in the white paper] Japan openly fabricated facts. It did so for two main reasons: 
The first was to cooperate with the U.S.’s strategy of returning to the Asia-Pacific. Yin Zhuo said that the United States is now trying to contain China utilizing the safety issues in China’s surrounding regions. This is an important goal of the U.S.’s rebalancing strategy in returning to the Asia-Pacific. Japan, as a U.S. ally, is bound to cooperate vigorously with U.S. policy. Meanwhile, with China’s rapid economic development, China’s national defense has advanced as well. This has also made Japan feel threatened. 
The second is that Japan is carrying out a media warfare campaign against China. Yin Zhuo further pointed out that, by doing so, Japan is preparing for its attempt to become a political power and a permanent member of the Security Council. At the same time, it is also creating the publicity for next year’s election campaign to be a non-permanent member of the Security Council. Yin Zhuo said that on any multilateral occasion, including at the United Nations, Japan has spared no effort to attack China. Japan is attempting to bring the Sino-Japanese dispute to the entire world. Abe obviously showed this intent when he was visiting Latin America and Africa. 

Source: People’s Daily, August 6, 2014 
http://military.people.com.cn/n/2014/0806/c1011-25413439.html

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People’s Daily: Thailand Resumed Railway Project Connecting China

People’s Daily recently reported that the military government that is currently in-charge in Thailand just approved the resumption of the project to build two high-speed railways connecting Southern China. The project had been halted earlier due to political uncertainties and the Thailand Constitutional Court ruled in March that the entire infrastructure building project was unconstitutional. The new government started reviewing the railway project in May after taking over day-to-day government operations. According to the budget plan, the project is worth around US$23.2 billion. The construction is planned to begin next year. The resumed project plan, however, adjusted the target operating speed from 200 kilometers per hour down to 160. The government is still looking for ideas to bring the cost down further. 
Source: People’s Daily, July 31, 2014
http://world.people.com.cn/n/2014/0731/c1002-25379272.html
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BBC Chinese: China Protested against the British Deputy Prime Minister

BBC Chinese recently reported that the Chinese government officially protested the fact that British Deputy Prime Minister Nick Clegg met with Hong Kong’s former Chief Secretary Anson Chan and Hong Kong Democratic Party founder Martin Lee. Ms. Chan and Mr. Lee both testified before the British Parliament when it held a hearing on the upcoming Hong Kong democratic election arrangements. The two expressed their deep concerns about the lack of responsible moves on the part of both of the two signatory states of the "Joint Declaration,” on which the current Hong Kong political system was founded. The Chinese government called for an immediate suspension of all British “interference” in Chinese domestic matters. Nick Clegg, in his announcement, maintained that the people of Hong Kong deserve the right to make a real choice in a democratic election. Over half a million Hong Kong residents took to the streets on July 1 to demonstrate their unity in their quest for the freedom to cast meaningful votes.
Source: BBC Chinese, July 16, 2014
http://www.bbc.co.uk/zhongwen/simp/china/2014/07/140716_china_hk_clegg.shtml
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