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Geo-Strategic Trend - 208. page

Why Is China the Biggest Financial Contributor to the BRICS Development Bank?

On March 26, 2013, the fifth BRICS summit opened in Durban, South Africa. The BRICS leaders agenda included discussion of the establishment of a BRICS development bank, intended to finance infrastructure. China will contribute US$41 billion to the BRICS Bank. India, Brazil, and Russia will each contribute US$18 billion, while South Africa will contribute US$5 billion. 

Due to the fact that China is the biggest financial contributor, China will thus become the largest beneficiary. China can expand the domain of its own power by taking advantage of providing loans to developing countries. China should have the corresponding rights to express its voice as well. The bank headquarter should also be located in Beijing or Shanghai.

Source: China Review News, March 31, 2013
http://www.zhgpl.com/doc/1024/8/7/4/102487470.html?coluid=53&kindid=0&docid=102487470&mdate=0331064608

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Xinhua: Japan’s Prime Minister Visited Mongolia

Xinhua recently reported that Japan’s Prime Minister Shinzo Abe visited Mongolia as a step in the “Encirclement of China” strategy. Abe is the first Japanese Prime Minister to have visited Mongolia in seven years. Abe was expected to express a willingness to support the speeding-up of the Mongolian economy. Japan is also planning to speed up the negotiations on a free-trade agreement with Mongolia. Mongolia is a key exporter of coal. It currently exports 90 percent of its coal production to China. Mongolia is eager to expand its international coal market by building a railway that bypasses China. The country has high hopes that Japan can make a significant investment in this 1000-kilometer railway. Japan is also expected to cooperate with Mongolia in other areas like military and health. Abe visited Vietnam, Thailand, and Indonesia this January. The Indian Prime Minister is expected to visit Japan this May. The Japanese Foreign Minister also visited Australia in January.
Source: Xinhua, March 31, 2013
http://news.xinhuanet.com/world/2013-03/31/c_124523831.htm
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CRN: China’s Strategy Seen in the BRICS Leadership Summit

China Review News (CRN) recently published a commentary analyzing China’s new strategy as an emerging world power. The author suggested that, although the “old-fashioned” world powers still enjoy a relatively strong economic base, they are apparently suffering a major slow-down in economic development. The commentary expressed the belief that these “old-powers” are deeply concerned about the emerging countries led by the BRICS group. The U.S. is demonstrating a divide-and-conquer strategy by luring emerging nations like India and South Korea to join the TTP. Although the trade relationship with Russia and India still has a lot of issues, China’s strategy seems to be to engage itself more deeply, nonetheless. The commentary called for taking full advantage of the BRICS framework to work on stronger cooperation among emerging markets for maximized economic and political power as a united body.
Source: China Review News, March 29, 2013
http://www.zhgpl.com/doc/1024/8/4/3/102484344.html?coluid=1&kindid=0&docid=102484344&mdate=0329000126
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China’s Development Cannot Advance without Africa

ZHAO Changhui, a scholar at the Contemporary World Research Center, expressed the belief that China’s future development lies in Africa. He said the following in an opinion article published by Xinhua: 

“The geographic distribution of global business is being re-shuffled. Emerging markets will become the basic source for revenue and profit, whereas Africa is the battleground that all the players in the world will want to control.” 
“For the future, the most important issues are that China should do three things without any hesitation: 

1) Strategically, conquer Africa. The Chinese government, think tanks, the press, and the public need to adjust their view of the world, implement aggressive and mass scale African policies that are supportive and complementary to each other, and help the Chinese business community, especially the different central and local state-owned enterprises, to advance firmly and coherently in African. 

2) Tactically, steer China’s financial and monetary direction. China’s financial banking institutions, particularly the national financial institutions, should wake up and determinedly enter the most lucrative African market. The United States, as China’s geopolitical rival, is unrestrained in trade and financial protectionism, while Europe will remain flat over the next 10 years. 

3) As a goal, establish a unified market. Africa is eagerly looking forward to forming an alliance with China to have all-around cooperation in which China’s trade and investment will benefit Africa and the transfer of technology and productivity will lift Africa out of hunger, poverty, and social risks due the unemployment of young people. In today’s world, only China has strong finances, the technology, and the political will at the same time.”

“In short, the ‘China Dream’ is a new model for the world. Africa is the bridge for the ‘China Dream.’”
Source: Xinhua, March 27, 2013 
http://news.xinhuanet.com/world/2013-03/27/c_124509082_2.htm

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IHL: The Best Strategy is to Form an Alliance with Russia

According to the International Herald Leader, Yan Xuetong, Dean of the Institute of Contemporary International Relations at Tsinghua University in Beijing, said that, given the current international environment, the best strategy for China and Russia is to form an alliance with each other.

Yan pointed out that President Xi’s visit to Russia is not out of consideration of bilateral relations with the United States, but represents a totally new strategic paradigm shift. Yan further stated that the most important benefit such an alliance with Russia will bring to China is to solidify a favorable security environment for northern and western China so that China can focus on handling the pressure in eastern and southern China. Moreover, it may help re-balance the votes at the U.N. Security Council. Yan advised that China should take a proactive approach to forming an alliance and making proposals to Russia.

Source: International Herald Leader, March 26, 2013
http://ihl.cankaoxiaoxi.com/2013/0326/183592.shtml

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Wen Wei Po: China and Russia to Strengthen Military Cooperation is of Great Significance

On March 25, 2013, Wen Wei Po published an article titled “It Is of Great Significance for China and Russia to Strengthen Military Cooperation.” Xi Jinping, Chairman of the PRC and the Central Military Commission, visited the Ministry of Defense of the Russian Federation and the Russian Armed Forces’ Operational Command Center. Xi Jinping is the first foreign leader ever to be allowed inside the Russian Armed Forces’ Operational Command Center, the "heart" of the Russian military establishment.

“In recent years, the United States has implemented the ‘return to the Asia-Pacific’ strategy and instigated Japan to provoke the Diaoyu (Senkaku) Islands dispute in Asia. Thus the risk of an accidental Sino-Japanese battle is rising; Japan’s attitude on the South Kuril Islands has turned firm. Therefore, China and Russia need to support each other and maintain the international order in the post-World War II era.”

Source: Wen Wei Po, March 25, 2013
http://paper.wenweipo.com/2013/03/25/WW1303250004.htm

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Chinese Scholar: Five Non-Military Means to Respond to the Diaoyu Islands Dispute

On March 21, 2013, Cheng Enfu, member of the Presidium of the Chinese Academy of Social Sciences (CASS), Academic Division, and director of the Academic Division of Marxist Studies, published an article on Huanqiu (the Chinese edition of Global Times) proposing five non-military means to deal with Japan on the Diaoyu Islands dispute (called the Senkaku Islands in Japan).

1) Mobilize overseas Chinese around the world to launch Diaoyu Islands Protection campaigns and ask Taiwan authorities to take the major responsibility to protect the Diaoyu Islands. 2) Take advantage of Japan’s eagerness to become the new permanent member of the United Nations and make a political deal with Japan. 3) Reduce the export of rare earths and other strategic resources to Japan and tighten the importation of Japanese goods. 4) If Japan does not back off on the Diaoyu Islands dispute, then support Russia and South Korea’s position on the South Kuril Islands and Dokdo Island. 5) Mobilize friendly Japanese people from all walks of life to boycott and split up Japan’s rightist militant forces.

Source: Huanqiu, March 21, 2013
http://opinion.huanqiu.com/opinion_world/2013-03/3753232.html

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Xinhua: Xi Jinping Visited Russian Defense Ministry

On March 23, 2013,  Xinhua reported that new Chinese President Xi Jinping visited the Russian Defense Ministry. This was the first time the head of the Chinese government visited Russia’s Ministry of Defense. It was also the first time any head of state paid a visit. The Russian Defense Minister welcomed Xi and guided the tour. Russian President Putin recommended this visit. It was seen as a gesture to demonstrate the close relationship between the two countries. Xi suggested that the military cooperation between the two countries is especially important in the “comprehensive strategic partnership” relationship the two are building. Xi spent quite some time experiencing the live operations of the Russian Federal Combat Command Center.
Source: Xinhua, March 23, 2013
http://news.xinhuanet.com/2013-03/24/c_124495586.htm
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