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Geo-Strategic Trend - 196. page

“Ukraine Crisis May Bring China a Decade of Strategic Opportunities”

At a recent forum discussion, Major-general Wang Haiyun, a senior advisor at the China International Institute for Strategic Society, spoke on the Ukraine crisis. The following are excerpts from his comments.
"After the disintegration of the Warsaw Pact and the Soviet Union, Europe transitioned from a region related to the U.S.-Soviet confrontation to one of peaceful coexistence. In recent years, with the implementation of the United States’ ‘re-balance to the Asia-Pacific’ strategy, the confrontation seems to have shifted to Asia. However, the Ukraine crisis once again made Europe the frontier of the confrontation between Russia and the West."
"Since the Cold War, the Ukraine crisis has become a turning point for East-West relations. Russia and the U.S. are switching from strategic tolerance to strategic confrontation. The U.S. will have to strengthen its military and political presence in Europe."
"Given this circumstance, NATO’s ambitious global intervention may have to shrink to Europe. Its capacity to be involved in Central Asia and East Asian affairs will have to decline. In other words, the U.S.’s ability of strategic encirclement of China may be weakened; the hegemonic pressure that China is facing may be reduced."
"Because of the defamation, isolation, coercion, and suppression emanating from the Western powers, with its deterioration of the international environment, and especially its West border security environment, Russia has to rely on China, a booming power with similar strategic interests and strategic ideals to counterbalance the Western pressure."
"Not being a party of the dispute, China is relatively detached. As a result, many parties are looking at the reactions from China and hope that China is on their side. This places a high requirement on China’s diplomacy. If China handles it well, China can improve its international status and enhance its voice in the international community."
Source: People’s Daily Online, April 23, 2014
http://military.people.com.cn/n/2014/0423/c1011-24932194.html
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Qiushi: China Uses Move to the West Strategy to Break through U.S. Containment of China

On April 22, 2014, Qiushi, a journal of the Central Committee of the Chinese Communist Party, published an article on China’s “Move to the West.” It discussed a “balancing strategy” of how China is to deal with the U.S. return to the Asia-Pacific and to “break through America’s containment of China.”

According to the article, China has good trade and economic relationships with European countries, Central Asia (the former Soviet Union Countries), Pakistan, and Iran. However, China’s “Move to the West” plan involves seeking Russia’s understanding and support. Currently, the conflict between Ukraine and Russia is escalating and both sides want China’s support. China must implement projects involving cooperation with Ukraine and also stand with the Russia together against NATO’s eastward expansion. China will continue its involvement in the China-ASEAN Free Trade Area, the Shanghai Cooperation Organization, and the China-Russia strategic cooperation. Meanwhile, China will seek development in the Oceans as well. However, the United States always creates conflict so as to contain us. We must resolve the problems in the neighboring countries in terms of economic dependence on China, moving outward politically from China, and pressure from marine power.

Source: Qiushi, April 22, 2014
http://www.qstheory.cn/gj/gjsspl/201404/t20140422_342588.htm

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On Ukraine: China Should Lean Towards Russia

China.com.cn, a key State news website under China’s State Council Information Office and the National Internet Information Office, published a commentary stating that as the crisis in Ukraine unfolds, China should gradually lean towards Russian. 

According to the commentary, there are two reasons for China to be more active on the issue of Ukraine. First, China has been objective and impartial without taking sides, while showing moral sympathy toward Russia. This approach has won respect from the parties and expanded China’s influence on the issue of Ukraine. However, as the situation develops, it would be impossible to be “absolutely independent” or even “relatively independent.” Second, while the U.S. focuses on Ukraine, Obama does not forget China. The U.S. has been beating the drum on the issues of the East China Sea and the South China Sea. It equates Crimea with Taiwan and its recent remarks clearly show that whatever happens in Europe will not affect the U.S. adjustment in its Asian Pacific strategy, which deems China as its top adversary. 
“So should China make a corresponding policy move to lean towards Russia on the issue of Ukraine as retaliation against the United States?” The commentary predicted that during Putin’s visit to China in May, the two strategic partners will issue surprising announcements concerning further cooperation between the two, a natural response by China and Russia to the U.S. intrusion and containment. 
Source: China.com.cn, April 16, 2014 
http://news.china.com.cn/world/2014-04/16/content_32107518.htm
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440 Confucius Institutes and 646 Confucius Classrooms around the World

On April 17, Social Sciences Academic Press and Hubei University jointly issued the "Culture Blue Book, Chinese Culture Development Report." The Report states that although the Confucius Institute was launched not long ago, it already has had a huge effect and a far-reaching influence. Compared to other major international organizations that promote language and culture, the Confucius Institute is leading the league in terms of pace of expansion and magnitude of influence. According to the latest data from Hanban (the Chinese National Office for Teaching Chinese as a Foreign Language), by the end of 2013, 440 Confucius Institutes and 646 Confucius Classrooms had been established in 120 countries (regions) around the world. The United States has the largest number (97) of Confucius Institutes.

Pushed forward by the Confucius Institute, learning the Chinese language has become popular around the globe. In 2010 and 2011, Russia and France each organized the "Chinese Year" activities. According to the China culture media network, a website under the Ministry of Culture, in 2010, about 100 million foreigners were learning Chinese; that figure reached 150 million in 2013. The Confucius Institute has become the brand name for promoting the Chinese language and showcasing China’s "soft power."

Source: People’s Daily Online, April 17, 2014
http://politics.people.com.cn/n/2014/0417/c1001-24908823.html

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Xinhua: French Customs Seized Two Million Cases of Counterfeit Drugs

Xinhua recently reported that, at the end of February, the French customs seized over two million cases of Chinese counterfeit drugs in the port city of Le Havre in Northern France. According to the announcement made by French customs, this is the largest batch of medicine confiscated in the history of the European Union. French customs reported that all of the cases were marked “Chinese Tea.” Customs also emphasized that some of these drugs contained no active ingredients and that their only use was to cheat the consumers. Some medicines contained an inaccurate level of active ingredients, which can seriously threaten the health of the consumers who take them. 
Source: Xinhua, April 11, 2014
http://news.xinhuanet.com/overseas/2014-04/11/c_126380377.htm
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Chinese Investment in Australia

In March of 2014, KPMG and the University of Sydney’s China Study Center jointly published the report, "Demystifying Chinese Investment in Australia." The report explores the recent direction of Chinese investment in Australia.

In 2013, Australia lost to the United States as the top destination for Chinese outbound direct investment. The total value of Chinese investments in Australia from 2005 to 2013 was $57,250 million, second to the U.S., which was $59,900 million.

Although Chinese investments in Australia registered a 10 percent decrease in 2013 as compared to 2012, there was a clear shift toward larger numbers of small to medium sized deals having larger shares of private Chinese investors, particularly in the commercial real estate sector.

For the first time, Chinese investments in Australia were not concentrated in the mining sector. Instead the power transmission industry dominated with the State Grid deal accounting for 40 percent of the total investment value in 2013, followed by mining (24 percent), gas (21 percent), commercial real estate (14 percent) and agribusiness (1 percent).

Source: "Demystifying Chinese Investment in Australia," March 2014 Update.
http://www.kpmg.com/au/en/issuesandinsights/articlespublications/china-insights/pages/demystifying-chinese-investment-in-australia-march-2014.aspx

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Xinhua: Peruvian Government Called Temporary Halt to CHINALCO Copper Project

On March 31, Xinhua reported that the government of Peru has recently shut down a China Aluminum Corporation (CHINALCO) copper mine development project temporarily, citing environmental violations. CHINALCO controls the Toromocho Copper Mine located in central Peru. The development is to construct one of the largest copper mines in the world, with the level of its capacity at 10-million tons. The Toromocho project is also China’s largest copper project overseas. The Peruvian environmental protection agency OEFA ordered the temporary shut-down due to the fact that the copper waste being discharged into the nearby lakes violated environmental protection codes. This was discovered around mid-March. The CHINALCO spokesperson refused to confirm the news because of the “lack of details.” China Aluminum Corporation is a multinational aluminum company headquartered in Beijing. It is the world’s second largest aluminum producer (and the only producer in China).
Source: Xinhua, March 31, 2014
http://news.xinhuanet.com/fortune/2014-03/31/c_126334845.htm
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People’s Daily: Street Politics is not Democracy

People’s Daily published a commentary on “street politics” or “color revolutions,” citing interviews with three Chinese scholars of international political science.  

According to the article, Western media tend to characterize street protests aimed to overthrow the government as resulting from people’s great efforts for democracy, while they dub other street events as "anarchist riots." Contrary to democracy, countries with street protests for “democracy” suffer from chaos and violence. This is because of the major forces that promote “street politics” from behind the scene. The influence of Western forces is behind the scene in many of the countries where they take place. Repeated changes of governments bear a close relationship to whether or not the West likes them. All countries can explore their own path, but it must be done according to the laws of that country. 

Source: People’s Daily reprinted by Xinhua, April 3, 2014 
http://news.xinhuanet.com/2014-04/03/c_126349005.htm

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