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Geo-Strategic Trend - 211. page

A Panamanian Lawyer’s View on China’s Silent Army

BBC Chinese recently interviewed a Panamanian lawyer, Berta Thayer, about her view on the new book, China’s Silent Army.  It was written by two Spanish journalists, who documented the unprecedented growth of China’s economic investment in the developing world and its impact at the local level.

According to the United Nations, in 2001, China’s investment in Latin America was less than one US$1 billion, while the figure grew to 44 billion in 2010.

For example, according to Thayer, in Panama, about one fifth of its 3.3 million population is either ethnic Chinese or of Chinese descent. China is already the second largest client of the Panama Canal, next to the U.S. China is also the largest supplier in Panama’s Colon Free Zone, whose annual trade volume amounts to US$5 billion.

Source: BBC Chinese, February 1, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/02/130201_china_silent_army_berta.shtml

Xinhua: What’s the Hidden Agenda behind the Japanese Politicians’ Frequent Visits to China

A Xinhua article commented on Japan’s Prime Minister Abe’s intentions regarding China policy. The article stated that “important political officials and former heads of government in Japan have visited China recently, one after the other. In just two weeks, Japan has sent many people to China for a visit.” The article asked the question, “What do these Japanese visits mean?” 

The article commented, “To cope with the thorny issue of Sino-Japanese relations, Abe is subtly playing double faces: on the one hand, he is showing the ‘big and hard-line’ military ambition; on the other hand, he is ‘lowering his profile’ to stay humble in order to obtain economic interests at the Sino-Japanese summit.” 
“Abe is trying to use Japanese officials’ intensive visits to China to achieve multiple purposes: paving the way to obtain economic benefits from China; alleviating domestic pressure by talking about the Diaoyu Islands dispute between China and Japan; and, at the same time, finding an excuse to increase militarily arms preparations.” 

The article warns, “This time Abe perhaps made a wrong calculation; he underestimated the will and wisdom of the Chinese leaders. Chinese leaders have repeatedly made it clear that China will never trade its core national interest. … If Abe really wants to press the "reset" button on Sino-Japanese relations, to ‘walk in the same direction (as China) is the only correct path. No matter how many ‘personal letters’ or visits to China, perhaps it (Japan) will lose credibility because of the military ambitions of the Japanese side.” 
Source: Xinhua, January 31, 2013 
http://news.xinhuanet.com/world/2013-01/31/c_124295594.htm

North Korea to Detonate Oversize Atomic Bomb on the Border of North East China

On January 28, 2013, infeng.com published an article titled “North Korea’s Heartless Treatment of China: To Detonate Over-sized Atomic Bomb on the Border of North East China.”

On January 22, the UN Security Council unanimously adopted resolution 2087 condemning North Korea’s long-range rocket launch last December as a violation of an existing ban against nuclear and missile activity. In response, North Korea announced plans for a third nuclear test and continued its rocket launches. North Korea may detonate an oversized atomic bomb, an “enhanced atomic bomb” that is equivalent to a small hydrogen bomb. The Chinese people are afraid that North Korea will detonate this extra large atomic bomb on the border of North East China in a densely populated area. 

The article concluded, “China has made national sacrifices for Korea three times and provided huge assistance to North Korea for a long period of time. It is definitely unwise and heartless for North Korea to treat China in such a way.”

Source: infeng.com, January 28, 2013
http://news.ifeng.com/opinion/zhuanlan/xuelitai/detail_2013_01/28/21668791_0.shtml

Huanqiu Editorial: How Shall We View Staring a War after Nearly 30 years Peace?

On January 15, 2013, , Huanqiu (the Chinese edition of Global Times) published an editorial titled, “How Shall We View ‘Staring a War’ after Nearly 30 years Peace?" According to the article, discussions about “starting a war” have appeared on Chinese media due to the tense situation in the Diaoyu Islands and the South China Sea. The article stated that the United States is everywhere behind the hot spots around China.

It concluded, “China should continue to build up the power of its national defense so as to form a strategic deterrent against the United States, which is behind all of the above thinking. The stronger China’s economic strength is, the greater China’s influence will be in the world order. China must have sufficient military power to suppress the ambitions behind any attempt to use non-economic means to change the rules of competition .”

Source: Huanqiu, January 15, 2013
http://opinion.huanqiu.com/editorial/2013-01/3494346.html

IHL: A Sovereignty Declaration Might Result in an “Accidental Discharge”

On January 7, 2013, the International Herald Leader, a newspaper under Xinhua News Agency, published an article in which the reporter interviewed Major General Luo Yuan on the “probability of accidental discharges” involving neighboring countries. In the interview, Luo pointed out that many neighboring countries may declare sovereignty [over islands or border areas in dispute] and “some countries are good at sneak attacks.” Luo therefore foresaw the “probability of accidental discharges” occurring in 2013. Thus, he suggested, China must get ready.

Source: International Herald Leader, January 7, 2013
http://ihl.cankaoxiaoxi.com/2013/0106/145995.shtml

Xinhua: The U.S. is Mass-Selling Weapons to China’s Neighbors

Xinhua recently published an article which reviewed a number of media reports from Russia, Hong Kong, Iran, Taiwan, Japan, and Britain on U.S. arms sales in Asia. The number of fighter jets, missiles, and rockets that the U.S. will sell to China and North Korea’s neighbors is expected to increase significantly in 2013. U.S. Aerospace Industries Association, whose members include Lockheed-Martin, Boeing, and Northrop-Grumman, issued the same forecast. The Asian focus of the Obama administration and the increased Chinese defense budget are considered primary drivers behind this move. Experts suggested that conflicts in the South China Sea and the East Sea are fueling the U.S. arms manufacturers. Four Global Hawk unmanned aircraft worth US$1.2 billion were sold to South Korea right after North Korea’s rocket launch last month. It seems that both U.S. allies and their opposition agree that the re-balancing process in East and Southeast Asia is profiting the U.S. arms industry.
Source: Xinhua, January 5, 2013
http://news.xinhuanet.com/world/2013-01/05/c_124184314_3.htm

Xinhua: PetroChina Investments in Iran Got Stuck

Xinhua recently reported that Iran’s Oil Ministry announced, at the end of 2012, that PetroChina “lacked the willingness” to push forward on the investments in some of its projects in Iran. The two sides have been in negotiations for over half a year and PetroChina is not moving forward. Last summer there had already been reports on PetroChina withdrawing from its investment plans. However, PetroChina officially denied any withdrawal. This new Iranian announcement is the latest development under the “shadow of U.S. sanctions.” PetroChina has recently been pulling workers out of some sea-side Iranian cities. PetroChina officials were not available to comment on the latest Iranian government announcement. After the U.S. sanctions started, all Western companies left Iran, which made the Chinese companies the primary investors in Iran’s energy industry. Restrictions and policy constraints present other barriers to PetroChina’s project schedules. PetroChina currently has four investment projects in Iran totaling over US$10 billion. 
Source: Xinhua, January 5, 2013
http://news.xinhuanet.com/fortune/2013-01/05/c_124186289.htm

27 Percent of China’s Billionaires Have Emigrated

China’s International Migration Report (2012) was released in December 2012. The report showed that in China, among business owners with personal assets of more than one billion yuan (US$160 million), 27 percent have emigrated, and 47 percent are considering emigration. In the past three years, at least 17 billion yuan ($US2.7 billion) of capital has flown abroad.

The Blue Book shows that the emigration of the wealthy reflects, to a certain extent, the problem of capital flight. Some people transferred their "gray income" overseas to achieve tax avoidance and also to evade prosecution in accordance with the national laws. This capital flight has led to a huge loss of the nation’s wealth.

Source: Xinhua, January 6, 2013
http://news.xinhuanet.com/fortune/2013-01/06/c_124191693.htm