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BBC Chinese: China and Britain Signed Agreement on RMB Settlement

BBC Chinese recently reported that the British government signed an RMB Clearing and Settlement Agreement with China. This is the first agreement of its type outside of Asia. It further strengthened London’s position as the primary RMB exchange center in the Western world. After Hong Kong became the first offshore trading center for the Chinese currency (RMB) in 2009, several other cities such as Singapore and Tokyo competed to be the second primary RMB trading market. The Chinese government is trying to make the RMB a key player in the competition to challenge the U.S. dollar as the dominant currency in the global economy. The Bank of England signed a currency exchange agreement with the People’s Bank of China in June last year; that agreement expires in three years.
Source: BBC Chinese, March 26, 2014
http://www.bbc.co.uk/zhongwen/simp/uk/2014/03/140326_china_uk_rmb.shtml
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Sino-Russian Youth Friendship Exchange Year Launched in St. Petersburg

The opening ceremony of the "Sino-Russian Youth Friendly Exchange Year" was held on March 28 in St. Petersburg, Russia. Chinese President Xi Jinping and Russian President Vladimir Putin each sent a letter of congratulations.

In his letter, Xi Jinping said that, "President Putin and I jointly decided to hold the ‘Sino-Russian Youth Friendly Exchange Year.’ Year 2014 is a ‘Sino-Russian Youth Friendly Exchange Year’ and year 2015 will also be a ‘Sino-Russian Youth Friendly Exchange Year.’" The initiative will promote the comprehensive strategic partnership between China and Russia at a high level and will promote the China-Russia friendship for the coming generations. The leaders of the two countries have undertaken this major initiative with an eye toward long-term bilateral relations.

In his letter, Putin expressed that large humanitarian events such as Russia’s "Year of China" greatly expand bilateral cooperation in many fields, including education, science, culture, tourism and sports. The "Youth Friendly Exchange Year" will further strengthen the China-Russia comprehensive strategic cooperative partnership.

Source: Xinhua, March 29, 2014
http://news.xinhuanet.com/2014-03/29/c_126330401.htm

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Study Times: China Should Develop a Silk Road Economic Zone

According to an article published by Study Times, for China to develop the Silk Road economic zone (Silk Road Belt), the selection of routes is a matter of control and dominance and should be based on a consideration of China’s long term “strategic need for national rejuvenation.” 

The Silk Road Belt may have five routes. Starting from the north, the first route is the Eurasian Continental Bridge followed by the second route, the New Eurasian Continental Bridge North line. These are the northern routes. The third route is from central Asia, Iran, Turkey, and Europe (Africa), the main trunk of the ancient Silk Road. This is the central route. The fourth and fifth are the China-Pakistan Economic Corridor and the Bangladesh-China-India-Myanmar Economic Corridor, which are the southern routes. All things considered, the central route has obvious advantages. 
The breakthrough for the central route will be to advocate building a Civilization Rejuvenation Community (CRC). As there are many ancient civilizations along the central route, the common denominator is civilization rejuvenation. At one time or another, they were prosperous, bullied by super powers, suffered the pains of marginalization, experienced clashes between domestic values and Western values, and shared similar development problems and a desire to accelerate economic development. They all resonate with strong ethnic revival. Building the CRC along the central route will revitalize our relations with these countries and enhance China’s International Discourse Right. 

Source: Study Times, March 24, 2014 
http://www.studytimes.cn/shtml/xxsb/20140324/4258.shtml

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Beijing Joins Taipei in Criticizing Student Protesters

The students’ occupation this month of Taiwan’s parliament to oppose the government’s attempt to pass a controversial trade agreement with China is indeed unprecedented. The trade deal allows Beijing and Taipei to invest more freely in each other’s service markets. Protesters say the deal will hurt Taiwan’s economy and leave it vulnerable to pressure from Beijing, but Taipei says it will benefit Taiwan’s economy.

Beijing’s official media joins Taipei in criticizing the protesters.

People’s Daily Online quoted from the Chicago China News & Digest, a local Chinese language newspaper, which stated that the Taiwan Benevolent Association in Chicago had issued a "solemn declaration" that the recent development revolving around the trade deal turned Taiwan’s representative politics into "mob politics." Opposition parties’ politicians are using inexperienced students as a tool in a power struggle. They have trampled on democratic politics and disgraced Taiwan’s international image.

People’s Daily Online also quoted from the Taiwan based United Daily News that some Taiwanese have organized a "White Justice Alliance" and called for a street parade on March 29. The Alliance states that not everyone is against the trade deal.

[Editor’s note: The students are also concerned that the KMT has steamrolled the political system, reneging on a promise to allow a thorough review and public consultation on the terms of the deal, thus threatening Taiwan’s hard-earned democratic system.]

Source: People’s Daily Online, March 27, 2014
http://tw.people.com.cn/n/2014/0327/c14657-24752121.html
http://tw.people.com.cn/n/2014/0327/c14657-24751014.html

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Qiushi: The Root Cause of the Chaos in Ukraine

On March 25, Qiushi published a commentary on the root cause of the chaos in Ukraine. The first reason is that “[Western] liberalism wantonly invaded [Ukraine], splitting Ukraine in the name of ‘freedom,’ and causing ordinary citizens to be unable to tell friends from foes.” The commentary also cited regional cultural differences, rampant corruption, and an unsuccessful “grafting” of the Western political system. 

However, “the ultimate cause of the unrest in Ukraine is that the European Union, the United States, and Russia compete for dominance over Ukraine.” Europe, once it controlled Ukraine, it would have leverage against China and Russia. The reason the United States competes for Ukraine is to squeeze Russia’s strategic space, block the Eurasian connection, and interrupt the Eurasian Silk Road that China has proposed. With respect to Russia, if it were to lose Ukraine to the West, it would lose the largest of the countries within the Commonwealth of Independent States; it would lose its last political strategic protective buffer. 

Source: Qiushi, March 25, 2014 
http://www.qstheory.cn/zywz/201403/t20140325_333580.htm

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People’s Daily: Russian Banks May Switch to UnionPay

People’s Daily recently reported that Anatoly Aksakov, Deputy Chairman of the Russian State Duma Financial Markets Committee, suggested Russian banks under U.S. and European sanction may switch to China’s UnionPay credit card system, replacing the Western payment networks such as Visa and MasterCard. UnionPay is the only domestic bank card organization in China. Established in 2002, UnionPay has grown into the second largest payment network after Visa. UnionPay is now accepted in 141 countries in the world, including United States. Visa and MasterCard stopped the payment services for two Russian banks after the sanctions imposed on Russia after its invasion of Crimea. Aksakov said that even Iran has survived the financial sanctions. Russia’s participation in UnionPay will only hurt Visa and MasterCard.
Source: People’s Daily, March 21, 2014
http://world.people.com.cn/n/2014/0321/c1002-24705197.html
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CRN: The U.S. May Encourage Japan’s Aggressiveness

China Review News (CRN) recently published a commentary analyzing Washington’s possible new strategy after the on-going conflict in Crimea. The commentator suggested that the United States is facing an inability to maintain both the new European frontline, which is threatened by the Russian moves, and the existing plan to “Return to the Pacific” at the same time. The U.S. defense budget simply cannot sustain two large overseas spending initiatives. The author expressed the belief that the U.S. core national interests are under attack due to the recent Crimea conflict because it impacts the confidence of all other new European allies from the former Soviet camp. If the “Return to Europe” strategy gains traction, the United States won’t be able to maintain its level of involvement in the Pacific region, which, the article concluded, will result in the U.S. encouraging Japan to play a much more important role.
Source: China Review News, March 20, 2014
http://hk.crntt.com/doc/1030/8/3/7/103083763.html?coluid=218&kindid=0&docid=103083763&mdate=0320111519
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Huanqiu: Is Russia’s Rise Good or Bad for China?

Huanqiu published a commentary article on whether Russia’s rise is good or bad for China. Below is an excerpt translated from the commentary: 

Moscow ignored the West’s warnings and announced the Crimea’s quick "return" to the Russian family. Putin’s geopolitical guts shocked the world’s political strategists. The shock to the United States and Europe has far-reaching implications. 
Chinese public opinion is roughly divided into two factions. One highly valued Putin’s strong striking back at the West, believing that Putin’s tough strategy will help reduce the pressure on China from the West. The other is worried that Russia’s Crimea victory will encourage Moscow’s arrogance or even "tyranny." Beijing may have difficulty in dealing with Moscow in the future. Some people worry that Russia’s rise again will see the recurrence of the past Tsarist Russia or the Soviet Union and lead to a new geopolitical nightmare for China. 
China’s position in Asia and the world is no longer the same as in the old times. The contrast between China and Russia’s overall national strength has also undergone historical changes. In the current situation between the two countries and with the potential for future development, China does not need to be more cautious of Russia than Russia of China. 
For quite a long time to come, China’s biggest strategic pressure will come from the U.S.-led Western powers. This pressure is both geopolitical and also, to a large extent, at the level of ideology and values. It is everywhere and it is also China’s core issue in the 21st century. It is much larger than the variables that may cause worries between China and Russia. 
Russia’s rise, in terms of strength and scale, is not without limit. China advocates a multi-polar world. If there is a relatively strong Russia to jointly promote the formation of a multi-polar world, it is much better than a world dominated by a uni-polar U.S. that has the final say. 

Source: Huanqiu, March 20, 2014 
http://mil.huanqiu.com/observation/2014-03/4917361.html

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