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Venezuela Will Breach Its Agreement with China

Well-known Chinese news site Netease recently reported that Venezuela, a long-term Chinese friend, seems to be planning to breach its oil supply contracts with China. Venezuela has been breaching its supply contracts with many oil service providers. China has been providing loans to Venezuela for a long time. Since 2006, the total amount has reached US$50 billion, which is half of China’s loans to Latin America. Currently Venezuela is exporting 330,000 barrels to China every day. However national newspapers in Venezuela have reported that the country doesn’t need to continue those exports any more. The Chinese Ministry of Commerce later confirmed the claim and added that the decision was made based on a request from Venezuela. The loans were apparently extended, but there has been no clear indication of what the new arrangement is. Venezuela is currently going through a major challenge in the lack of foreign exchange reserves. The situation is causing difficulties even in toilet paper supplies. The money saved by not paying back loans will help ease the painful need for cash.
Source: Netease, October 24, 2014
http://money.163.com/api/14/1024/08/A9AD8R8000254TFQ.html?frp091
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Xinhua: Achievements of Li Keqiang’s Europe Trip

Xinhua reported that "Li Keqiang has successfully completed his trip to Europe and that China has harvested abundantly in its foreign diplomacy."

China has been doing trade diplomacy for decades. The Xinhua article praised the economic deals transacted with the European countries as the highlight of Li’s achievements. During Li’s trip, China and Germany signed 50 commercial and inter-government treaties, with a total of US$18.1 billion in bilateral trade and investment agreements. In Russia, the two countries signed 39 important bilateral documents, including a high-speed train project connecting Moscow and Kazan and a 150 billion yuan (US$25 billion) bilateral currency swap agreement. Chinese companies and Italian companies signed over 10 cooperation agreements, with a total exceeding US$10 billion.

Source: Xinhua, October 20, 2014
http://news.xinhuanet.com/world/2014-10/20/c_1112900663.htm

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India Considers Raising Import Tariffs on China

China Stock Network recently reported that India is considering the possibility of increasing the import tariffs on Chinese goods in order to deal with the imbalance seen in the trade between the two countries. In 2013, India’s export volume to China was US$15 billion while its import volume from China reached US$51 billion. In the long run, India cannot sustain the trade deficit on this level. Some kind of protection has to be established. In the meantime, Indian government officials have been concerned about the dumping approach the Chinese companies are taking, which may destroy their Indian competitors. Some international media have expressed the belief that the increase in tariffs may cast distrust between the two countries and India could be criticized for protectionism that kills competition.
Source: China Stock Network, October 16, 2014
http://news.cnstock.com/news/sns_bwkx/201410/3208847.htm
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People’s Daily on North Korea’s Unification Proposal

When South Korean President Park Geun-hye spoke at the Dresden University of Technology in Germany on March 18, she made several proposals on the steps to take toward the peaceful unification of the Korean Peninsula. On October 10, North Korea countered with the idea of establishing the "Democratic Confederate Republic of Koryo (Korea)."

People’s Daily interviewed some think tankers about North Korea’s proposal. Their analysis was that North Korea was afraid that Park’s "Dresden Proposal" would unify the country on an economic basis, which would mean the "peaceful revolution" of North Korea. Therefore North Korea countered with the proposal of a federation system. The think tankers felt that both sides realize that war will not resolve the problem of the peninsula. The two sides should reach an "independent and peaceful unification." However the issue of "independence" remains as the key.

Source: People’s Daily, October 14, 2014
http://paper.people.com.cn/rmrbhwb/html/2014-10/14/content_1487567.htm

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Xinhua: Russian Poll Showed China Considered the Friendliest Country

Xinhua recently reported that the All Russia Public Opinion Research Center released its latest poll results, showing that over half of the Russian population recognized China as the friendliest country. The poll used a sample of 1,600 people across 42 regions of the Russian Federation. When the Research Center conducted the same poll six years ago it found that only 23 percent of those surveyed said China was the friendliest. The poll also showed that Belarus, Kazakhstan, and India are considered friendly. In the meantime, the Russian people have a much worse impression of the United States, the European Union, Germany, and Ukraine. Around 73 percent of those surveyed thought the United States was the biggest enemy. The ratio was only 25 percent six years ago. 
Source: Xinhua, October 9, 2014
http://news.xinhuanet.com/world/2014-10/09/c_1112756560.htm
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Chinese Ambassador to Germany on Sino-German Relations

On October 9, Shi Mingde, the Chinese Ambassador to Germany, published an article on People’s Daily titled, "Use an All-out Effort to Develop an Upgraded Version of Sino-German Relations." Below is a translation of selected excerpts.
"For a little over a year, the frequency of exchanges of high-level visits between China and Germany has been unprecedented. This clearly shows that, between the concerted efforts of China’s new generation of central leadership and the new government of the Federal Republic of Germany, Sino-German relations have not only developed steadily; they have reached the highest level in history in terms of depth and breadth. The leaders of the two countries have maintained a close and trusting relationship."
"Founded on solid bilateral political mutual trust, Sino-German relations continue to carry a rich strategic content. Entering into the new century, Sino-German relations embarked on a ‘fast track’ and ‘acceleration period’ of comprehensive development; they have successfully achieved a ‘triple jump.’ In 2004, the two sides announced a partnership in global responsibility within the framework of the China-EU comprehensive strategic partnership; 2010 saw a comprehensive advancement of that bilateral strategic partnership and the establishment of a consultation mechanism. In 2014, the bilateral relationship will elevate further to an all-around comprehensive strategic partnership relationship. This not only points out the direction for the continued expansion and deepening of Sino-German relations, but also bears far-reaching significance for creating a new type of mutually beneficial relationship between a developing nation and a developed nation."
"Pragmatic cooperation between the two countries has become a long lasting force of propulsion for the relationship. This year, against the backdrop of a more uncertain and unstable world economy, January – August Sino-German trade reached US$117.35 billion, a year-over-year increase of 12.2 percent. The bi-directional investment has also seen a substantial increase and is expected to reach a record high year end. Bilateral cooperation in politics, economics, the humanities and international affairs are comprehensive, pragmatic, extensive, and deep. The China-Germany inter-governmental consultation is the highest-level consultation mechanism between China and any Western country. Nearly 30 minister level senior officials are expected to participate in this round of the ‘Sino-German joint meeting of the Cabinets.’ Almost all members of the German Cabinet will participate to discuss plans for future cooperation between China and Germany. The two countries decided to upgrade diplomatic and security strategic dialogue, start a high-level financial dialogue, promote high-end manufacturing and ‘Industry 4.0’ cooperation, and implement Visa Facilitation Services. The ‘four-wheel drive’ pragmatic cooperation between China and Germany will provide a lasting momentum to promote China and Germany as the top partner in each their respective regions."
Source: People’s Daily, October 9, 2014
http://paper.people.com.cn/rmrb/html/2014-10/09/nw.D110000renmrb_20141009_4-03.htm
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BBC Chinese: The U.S. Partially Lifted Its Embargo on the Sale of Arms to Vietnam

BBC Chinese recently reported that U.S. Secretary of State John Kerry met with Vietnamese Foreign Minister Pham Binh Minh on October 2. The United States decided to lift its embargo on the sale of weapons for naval defense purposes. The embargo on the sale of arms started in 1975 and has lasted nearly four decades. The U.S. government explained that this move was based on improvements in the human rights situation in Vietnam. Further expansion of the scope of lifting the embargo will depend on more improvements in the human rights area. U.S. officials denied any relationship between this announcement and the conflicts China is currently having with its neighboring countries in the South China Sea. The United States and Vietnam restored normal relations 20 years ago. The current annual trade volume between the United States and Vietnam is around US$20 billion. 
Source: BBC Chinese, October 2, 2014
http://www.bbc.co.uk/zhongwen/simp/world/2014/10/141002_us_vietnam_arms_sales
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Wang Yang: China and Japan Should Resume the Economic Dialogue

The South China Morning Post, a Hong Kong based century-old newspaper, recently reported that Chinese Deputy Premier Wang Yang met with the Japan-China Economic Association Delegation on September 24. At the meeting, Wang suggested that the two countries should resume the Senior Officials Economic Dialogue that they suspended four years ago. This comment was made in response to the Japanese Delegation’s emphasis on the importance of improving the two nations’ relationship. The Japanese Delegation also called for a meeting between Prime Minister Abe and the Chinese President Xi Jinping at the upcoming APEC Leadership Summit. However Wang kept quiet on this matter. The Japan-China Economic Association has high ranking managers from large Japanese companies as members. Since 1975, it has sent 39 delegations to China. The current delegation, which is the largest ever, hoped to meet with Chinese Premier Li Keqiang. However, that did not become a reality.
Source: South China Morning Post, September 25, 2014
http://www.nanzao.com/sc/international/38786/zhong-ri-jian-nuan-wang-yang-ji-jin-zao-hui-fu-jing-ji-dui-hua
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