Geo-Strategic Trend - 221. page

The International Herald Leader published a report from Tivoli entitled “Chinese Companies in Libya in Critical Need of Help.” The article stated that the 7-month war in Libya inflicted immeasurable damage on Chinese companies in Libya and that the first step toward reconstruction of the companies is to learn how to deal with the new Libya government. Among the foes that they are facing, the Chinese companies are concerned that the position of Libya’s leaders toward China is not clear. “Some officials have even shown varying degrees of an anti-China tendency. Thus, Chinese-funded enterprises are at a relative disadvantage politically. Some of the Libya partners even half-jokingly warned that they will reduce cooperation with Chinese enterprises.” Further, China has few political advantages in comparison with the NATO countries that imposed the no-fly zone that led to the defeat of the Kaddafi regime. “Western companies are likely to have a larger piece of the pie during the upcoming Libya reconstruction.”

These Chinese companies recommended that the Chinese government offer low or zero interest rate loans to Libya as a means of winning the the new Libya government’s trust and support. For example, if China agrees to accept oil as in kind payment for its losses during the war and for the project funds that are overdue, it would be a win-win for all: Libya can proceed to complete unfinished projects; the Chinese government can win the trust of the new Libya and have access to more oil reserves; and Chinese companies in Libya can re-build the projects in Libya.

Source: International Herald Leader, November 21, 2011
http://news.xinhuanet.com/herald/2011-11/21/c_131253008.htm

Beijing News reported that, on November 19, 2011, Chinese Premier Wen Jiabao met with Japanese Prime Minister Yoshihiko Noda and South Korean President, Lee Myung Bak. Wen called for an intensified joint effort to complete the research work on the free trade zone of the three nations. He expected the free trade negotiation to start next year and a completion of the investment negotiation as early as possible. China, Japan and Korea are the three most important nations in the East Asia region. The sum of the GDP of these three countries accounts for more than half of the GDP of the entire East Asia region. However, a researcher at the Chinese Academy of Social Sciences expressed the belief that the three nations have to build political trust first.

Source: Beijing News, November 20, 2011
http://epaper.bjnews.com.cn/html/2011-11/20/content_293741.htm?div=-1

China Review News (CRN) recently published an editorial on what impact the United States spearheading the Trans-Pacific Partnership (TPP) will have on China. The editorial expressed the belief that the TPP, if successful, will enhance the strategic advantage of the U.S. in East Asia, while weakening China’s influence. The author suggested that China currently has the upper hand in terms of free trade agreements in East Asia. However the U.S. is now trying to take the lead in this region by taking advantage of work with its political and military allies. It seems the TPP rules are designed to eliminate the chance for China to join, especially on the fronts of government purchases, intellectual property protection, and state-owned companies. The editorial suggested that China can bypass the TPP by negotiating free trade agreements directly with TPP countries, even if China is excluded from the TPP.

Source: China Review News, November 17, 2011
http://gb.chinareviewnews.com/doc/1019/0/8/0/101908005.html?coluid=53&kindid=0&docid=101908005&mdate=1117080446

As China’s demand for technology experts continues to rise, Chinese leaders are more and more conscious of how important it is to have technology experts help China grow. The Chinese government has adopted a series of measures to attract Chinese students who have studied abroad to return to China. The “Thousand People Plan” was introduced at the end of 2008. If offers incentives to attract high tech expertise from overseas to work in China. In June 2010, the State Council issued a mid to long term plan to develop technology experts. At the 10th conference on the international Exchange of Professionals that was held in Shen Zhen on November 5, 2011, the Chinese government announced that it will allow foreigners to hold senior positions in the scientific field or state owned enterprises. It will offer them compensation to match the level of pay they would receive in the U.S. and provide them with long term visas to live in China.

Professor Yan Xuetong, the Director of the Institute of International Studies, Tsinghua University, predicts that the future competition between China and the U.S. will be in technology, education, and expertise. Yan said, “Whichever country can attract the experts will be the most powerful.” He also believes that China doesn’t just need technology experts; it also needs experts who are capable of strategic thinking.

Source: Voice of America, November 17, 2011
http://www.voanews.com/chinese/news/20111117-china-talent-war-134070808.html

The State Information Center published an article in Outlook Weekly recommending that China join the Trans-Pacific Partnership (TPP) free trade pact, an Asia-Pacific regional trade agreement. The United States, eight other partners, and Japan have announced plans to participate and are currently negotiating. “Once the TPP is implemented, it will most likely change the current pattern of economic development and trade, have a profound influence on global, economic, and trade relations and regional economic cooperation and impact other forms of the multilateral trading system in the region.” With TPP, the U.S. intends to lead the future in economic cooperation in the region and formulate the new economic order with the U.S. as the center. “TPP may be viewed as the core strategy of the U.S. ‘New Pacific Century.’” The article recommends that China participate as early as possible so that it can set the standards and position itself well strategically.

Source: Outlook Weekly, November 14, 2011
http://www.lwgcw.com/NewsShow.aspx?newsId=24415

On November 14, 2011, China and Pakistan started a two-week joint anti-terrorism military exercise in Pakistan. The drill, which will end on November 27, 2011, is called “Friendship 2011.” China has sent 260 soldiers including special forces and army aviation helicopters to the drill site, while Pakistan has sent 230 Pakistani soldiers including special forces, helicopters, and fighter jets to participate in the drill.

“This joint drill is being conducted in six steps, namely ‘intelligence and information exchange, long range maneuvers, the establishment of a joint command system, adaptability training, comprehensive training, and theoretical discussions.’"

“This is the 4th anti-terrorism joint training drill that the Chinese and Pakistani armies have held with the aim of improving the two militaries’ capability to deal jointly with non-traditional security threats.”

Source: Xinhua, November 14, 2011
http://news.xinhuanet.com/2011-11/14/c_111165724.htm 

On November 8, 2011, the first Confucius Institute opened in Geneva, Switzerland, through the collaborative efforts of Renmin University and the University of Geneva. The City of Geneva authorized the Institute to locate its facility in a villa on the shores of Lake Geneva. Wu Ken, China’s ambassador to Switzerland; Jin Yeran, President of the Confucius Institute; Ji Bachen, the President of Renmin University; university officials from Geneva University; and Geneva state officials attended the opening ceremony.

Source: Xinhua, November 9, 2011
http://news.xinhuanet.com/world/2011-11/09/c_122252926.htm

Huanqiu (Global Times) published a commentary on China’s difficult situation in deciding on its diplomatic stance on Iran’s nuclear issues because China is in the awkward position of being unable to support or oppose any international resolution to punish Iran. The article depicts such a situation as China’s diplomatic “embarrassment,” which happens whenever there is a serious international conflict.

The article explained that China is a country with two identities. First, China is a “developing country” and must give the priority to its actual interests. Second, China is a country with a different political system and ideology from Western countries, but is, at the same time, also a part of the global economic community and must highly cooperate with Western countries. Because Western countries overall are still much stronger [than china], China cannot fight against them [yet].

The article asks the Chinese public to understand the difficult situation and shoulder together as a nation some inevitable loss. The article also declared that “China’s rise will not be a smooth march all the way, … but the diplomatic ‘embarrassment’ will not stay with China forever. It is just a special situation during this period of time. China must ‘endure’ to get beyond it.”

Source: Huanqiu, November 10, 2011
http://finance.huanqiu.com/data/2011-11/2160281.html