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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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Xinhua: Development Bank Plan Expected to Be Finalized at the BRICS Summit

Xinhua recently reported that the Sixth BRICS Summit will be held in Brazil on July 15. It is widely expected that the Summit will finalize the plan to establish the BRICS Development Bank and the BRICS Contingency Reserve Fund. The initial capital investments into the Bank will total US$50 billion. Each member country is expected to supply US$10 billion. The Reserve Fund will have US$100 billion to handle unexpected emergency situations. China is expected to provide US$41 billion to the Reserve. Russia, Brazil, and India will contribute US$18 billion each and South Africa will supply US$5 billion. Brazilian officials indicated that the two new mechanisms are in response to the lack of democracy in the World Bank and the International Monetary Fund (IMF). The BRICS Bank is planning to focus its investments on infrastructure-building in poor countries. The World Bank commented on the news that it welcomes the new BRICS Bank and the effort to fight poverty. While the BRICS member countries together will always hold a minimum of 55 percent of shares, the Bank welcomes other UN members to join. 
Source: Xinhua, July 10, 2014
http://news.xinhuanet.com/world/2014-07/10/c_126736409.htm
People’s Daily, July 9, 2014
http://world.people.com.cn/n/2014/0709/c1002-25261295.html
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Xinhua: The Vietnamese Are Prepared for War

Xinhua recently reported on comments that Nguyen Phu Trong, General Secretary of the Vietnamese Communist Party, made at a gathering of his voters on Vietnam’s relationship with China. When asked what Vietnam should do if forced into a war, Nguyen replied, “We should get ready for all possibilities.” At the same time, Vietnamese Prime Minister Nguyen Tan Dung instructed the government to prepare for the “tough economic situation” that may result from the “challenging relationship with China.” Not long ago, Vietnamese President Truong Tan Sang also stated that Vietnam would like to take legal actions against China. It is very clear now that all three of the top leaders in the Vietnamese political system have expressed their strong position in the conflict with China. The Vietnamese government has called for an independent economy and an international trade position. It also asked the people to have a “clear understanding of the position of the United States.”
Source: Xinhua, July 3, 2014
http://news.xinhuanet.com/mil/2014-07/03/c_126705376.htm
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