Geo-Strategic Trend - 205. page

 On May 26, BBC Chinese reported on news received from major Japanese media on the same day that the Chinese government and the Japanese government plan to reach an agreement in June, which will be implemented soon thereafter, to make the two countries’ currencies directly exchangeable. This will be the first time the Chinese yuan (RMB) will be directly exchangeable with another foreign currency without a “middleman” currency such as the U.S. Dollar. The agreement originated at the leadership summit the two countries had last December. Actual negotiations started this February. The Tokyo and the Shanghai foreign exchange markets are preparing for the operational mechanism, which has a delivery target of this June. This move is widely considered as a symbolic action for the Chinese yuan to “de-link” from the U.S Dollar. Currently Great Britain and Singapore are both in talks with the Chinese government to cut similar deals.

Source: BBC Chinese, May 26, 2012
http://www.bbc.co.uk/zhongwen/simp/business/2012/05/120526_japanese_chinese_yuan.shtml

Xinhua published an article containing many objections to the 2011 Human Rights and Democracy report that the UK Foreign and Commonwealth Office released. The article said that the report on China was full of unwarranted accusations. At the same time, it ignored the efforts and improvements that the Chinese government and its people have made. It said that the report was politically and ideologically biased and that China and the Chinese people could not accepted it. It also stated that human rights is an internal matter and that no other country has the right to interfere. Finally, it pointed out that not only will the UK government’s action not help the cooperation between the two countries; it will also not benefit China’s human rights advancement.

Source: Xinhua, May 18, 2012
http://news.xinhuanet.com/2012-05/18/c_111978684_2.htm

On the “Strong Nation Forum” (qiangguo luntan 强国论坛) on the People’s Daily website, military expert, Major General Peng Guangqian, answered questions from Chinese netizens. He expressed the view that military force is always an important means to safeguard national sovereignty. When someone asked: “In what situation would China use military force? Is it correct that China would never use military force no matter what happened?" Peng answered: “When China’s national core interests are violated, and when this cannot be stopped without military intervention, we have no choice but to use force to counterattack. In an era in which hegemonism and power politics still exist and are even progressing, military force is always an important means to safeguard national sovereignty and can never be excluded. We are not absolute pacifists. We cannot beg for peace. Rather we can only use force to obtain peace. If we give up the use of force, we can then only surrender and wait while others partition us at will.

Source: People’s Daily, May 17, 2012
http://military.people.com.cn/GB/17917831.html

According to People’s Daily, 14 officials from seven developing countries including Pakistan, Ethiopia, Fiji, and Sudan recently arrived at the China Executive Leadership Academy at Pudong, Shanghai, where they will receive a week long training. The Academy, an agency directly under the Chinese Communist Party’s Central Organization Department, is headed by Department chief Li Yuanchao, who is on the CCP’s 25-member Politburo. Among these students, six are ministerial-level officials. The 14 participants will be lectured about China’s political system, government structure, decision-making process, media, and mass communication. In addition, they will also take field trips to local communities and industrial parks.

Source: People’s Daily, May 17, 2012
http://cpc.people.com.cn/GB/164113/17908572.html

After being enmeshed in the Bo Xilai incident and the Chen Guangcheng escape to the U.S. Embassy for a few months, last week, Beijing took a tougher stance against the Philippines on the issue of the sovereignty of Huangyan Island (known as the Scarborough Shoal internationally) in the South China Sea. Both China and the Philippines claim ownership of the area; in the past month, the tension between the two countries has been escalating, including the involvement of navy ships.

On May 7, Fu Ying, China’s Vice Minister of Foreign Affairs called a meeting with Alex Chua, Charge D’affaires of the Philippine Embassy in China. Fu made a serious representation over the current situation at Huangyan Island. She stated that the Chinese side has made all necessary preparations to respond in case the Philippine side caused the situation to escalate.

On May 8, People’s Daily published a commentary titled “When it is intolerable, there is no need for restraint. China does not mind creating a Huangyan Island Model.” It stated, “When others challenge us, especially on matters related to territorial integrity, national dignity, and social stability, we must take action to destroy this ‘unhealthy trend’ and win ourselves a harmonious and stable environment.” “There is a limit to how much generosity we can demonstrate. When it’s intolerable, then there is no need for restraint.” “Facing this opponent, we have enough wisdom and also enough means to make it surrender without a war.” Though the article used the words, "make it surrender without a war," the entire tone of the article hinted at a direct confrontation with the Philippines.

Sources: Ministry of Foreign Affairs Website, May 8, 2012
http://www.fmprc.gov.cn/eng/zxxx/t929748.htm
Peoples’ Daily, May 8, 2012
http://politics.people.com.cn/GB/17829343.html

On May 10, 2012, amid the heightened tensions between China and the Philippines over what is known as the Scarborough Shoal in English and Huangyan island in Chinese in the southeastern region of the disputed waters, People’s Liberation Army Daily, the official voice of Chinese military, published a commentary titled, “Never Expect to Take Away Half an Inch of China’s Territory.”

The article said, “We never tolerate any unreasonable embarrassment with blind patience, not to mention that the issue matters for China’s territorial integrity, national dignity, and even social stability.

“For anyone who tries to snatch the sovereignty over Huangyan Island, not only will the Chinese government not agree; the Chinese people will not agree; and the Chinese army will not agree.

“For anyone, regardless of what tricks he plays, what backing he has, or what accomplice he ropes in, never expect to take away half an inch of China’s territory.”

Source: PLA Daily, May 10, 2012
http://www.chinamil.com.cn/jfjbmap/content/2012-05/10/content_4839.htm

On May 4, 2012, Major General Luo Yuan, the Deputy Secretary of the Chinese Society of Military Science, appeared on the program, “Let’s Talk about News,” which is hosted by ChinaNews.com. On the program, Luo proclaimed, “The Philippines have fired the first shot on the strategic level in terms of the Huangyan Island incident. China has been very polite and reasonable on the issue so far before resorting to force. However, military means are necessary and indispensable as a last resort.”

Luo added, “If the Philippines view China’s restraint and patience as a sign of weakness, a war will eventually break out.”

Source: Xinhua, May 4, 2012
http://news.xinhuanet.com/world/2012-05/04/c_123079551.htm

During his recent visit to Russia, Chinese Vice Premier Li Keqiang met separately with Russian President Dmitry Medvedev and the Russian president-elect, Prime Minister Vladimir Putin, in Moscow. According to the China News Service report, the originally scheduled 1 hour and 45 minutes meetings were extended to nearly three hours. Talks involved increased mutual support on issues concerning core interests, close strategic cooperation in international affairs, and cooperation on major bilateral strategic projects.

Chinese and Russian enterprises signed 26 cooperation agreements on projects amounting to US$15.2 billion. They involved infrastructure, energy, electrical and mechanical equipment, high-tech, finance, and other sectors. As progress in cooperation in energy projects, China and Russia signed energy contracts valued at US$6 billion. They involve the fields of oil and gas, electricity, coal, new energy, energy equipment and energy savings.

Source: China News Service, April 30, 2012
http://www.chinanews.com/gn/2012/04-30/3856877.shtml