Geo-Strategic Trend - 222. page

On January 12, 2012, People’s Daily published an article titled “It Is Impossible for China to Stop Buying Oil from Iran.” The article lists four reasons not to participate in the U.S. initiated economic sanctions against Iran: 1) it is the U.S. decision to step up the economic sanctions against Iran, not a UN Security Council resolution; 2)  tightening economic sanctions against Iran will only fuel tensions in the Gulf region; 3) participating in the economic sanctions against Iran will seriously damage China’s economic, strategic and other interests; 4) in the past, many U.S. initiated economic sanctions caused serious humanitarian disasters.

“Getting involved in sanctions against Iran would greatly undermine China’s economic, strategic, and other interests. With regard to economic interests, Iran is an important source of Chinese oil imports and an important market for Chinese consumer goods, capital, equipment exports, and overseas project contracts. Trade between the two countries reached US$29.4 billion in 2010 and jumped to US$41 billion in the first 11 months of 2011, representing a 55.8 percent increase.”

Source: People’s Daily, January 12, 2012
http://energy.people.com.cn/GB/16863152.html

The International Herald Leader, which is under Xinhua News, recently published an article by Li Li, a special military commentator with Chinese Central Television (CCTV). Li suggested that, in the past year, military investment around the globe has increased rapidly, especially in the Asia-Pacific region. Examples are India and Russia – both had military spending plans for the next decade that were on the level of US$100 billion. Another important characteristic of the trend is that significant high-tech weapon development projects started in the last year, such as the U.S. supersonic missile project. Li believed that, last year, Southeastern Asia countries reached a very high military spending level in their respective arms procurement history. The article also expressed the concern that this new development is casting a negative shadow over the region. The article ended by asking the Chinese general public to be more “sensitive” on defense issues.

Source: International Herald Leader, January 9, 2012
http://news.xinhuanet.com/herald/2012-01/09/c_131344083.htm

Zhang Yansheng, head of the Research Institute of Foreign Economic Relations under the National Development and Reform Commission warned developing countries that developed countries may get out of the current crisis at the  expense of emerging markets. Particularly, he wrote, “There are many ways for developed countries to transfer crises [to developing countries]. They can create bubbles and trade friction among developing countries. They can instigate financial instability through printing money and lowering interest rates, and they can use a variety of economic means to suppress emerging economies. When developed countries rise again, the bubbles in emerging economies will burst, which will plunge them into a prolonged recession. Historically, developed countries have invariably transferred and gotten out of crises at the expense of emerging economies.”

Source: Xinhua, January 9, 2012
http://news.xinhuanet.com/herald/2012-01/09/c_131344120.htm

On January 10, 2012, the Chinese People’s Association for Friendship with Foreign Countries and the China Central Asia Friendship Association hosted a ceremony at the People’s Hall in Beijing. State Councilor Dai Bingguo attended the reception. The purpose of the ceremony was to commemorate the 20 year anniversary of establishing bilateral diplomatic relations between China and Uzbekistan, Kazakhstan, Tajikistan, Kyrgyzstan, and Turkmenistan. In the speech that Dai gave at the ceremony, he said, “China and Central Asian countries have become inseparable good neighbors, good friends, and good partners. No matter what will happen in the international environment, China will unswervingly carry out the diplomatic policy of being friendly to its neighbors and being partners with its neighbors.

Source: People’s Daily, January 11, 2012
http://politics.people.com.cn/GB/70731/16850441.html

China Review News (CRN) recently published an official commentary on the “chaos” in the South China Sea. The commentary started with an analysis of the different strategies Vietnam and the Philippines have been using. In the territorial disputes that occurred in 2011, the two countries attacked China’s position, thus bringing more heat to the issue. The commentary suggested that the “behind-the-scenes shadow” of the United States was there each time the situation worsened. China’s neighbors are actively improving their military capabilities. In addition to that, threatening China with their “public opinions” has become a quick new way to create more trouble for China. The commentary called on China to have “very strong” Chinese confidence as well as to take decisive steps in response to the challenges that the regional political forces impose.

Source: China Review News, January 4, 2012
http://gb.chinareviewnews.com/doc/1019/6/2/1/101962112.html?coluid=1&kindid=0&docid=101962112&mdate=0104000351

Xinhua cited a report from the Russian Izvestia that China National Petroleum Corporation (CNPC) won a contract with the Afghanistan government for the development of oil blocks in the Amu Darya basin. The CNPC contract will also include construction of oil refineries in northern Afghanistan. Other bidders include companies from the United States, Britain, Australia, and Pakistan. According to the terms of the contract, CNPC will turn 70% of its profits over to Afghanistan. Xinhua reported that, according to a Russian political scientist, Kabul is seeking countries that it can rely on after the withdrawal of NATO troops. “Afghanistan does not want to give its wealth to the NATO countries which made a lot of promises, but have not done anything for the economic development of Afghanistan.” Xinhua reported that the Russian political scientist stated that India and China have filled the void.

Source: Xinhua, December 28, 2011
http://news.xinhuanet.com/world/2011-12/29/c_122503690.htm

Ding Yuanhong, the former Chinese ambassador to the E.U., published an opinion article in Jiefang (PLA) Daily, which  Xinhua recently republished, asking the U.S. to stop badmouthing the Euro. The article hinted that the U.S. is plotting to destroy the Euro so that it can further solidify the dominance of the U.S. dollar.

The article said, “Since the European debt crisis started, the involvement and interference of the U.S. has been very obvious. The U.S.’s active involvement with its financial tools, the three big debt rating facilities adding fuel to the fire, and the media spreading and playing up the problems have further aggravated the crisis. The American company Goldman Sachs which is partially responsible for the Greek debt problem came to the front to disseminate the view that it is inevitable that the Euro will collapse within five years. Each time the E.U. Summit discussed how to handle the E.U. debt crisis, the three American debt rating agencies Standard and Poor’s, Fitch, and Moody were unusually active, downgrading the credit ratings of the related E.U countries, in order to shake market confidence in the Euro. Even former Greek Prime Minister Papandreou’s sudden announcement, just before the G20 Summit, that he would call for a referendum on the E.U. bailout program, was rumored to have happened after his U.S. visit. As a matter of fact, every person with clear eyes can see that the actions the U.S. has taken were intended to destroy the Euro and eliminate the Euro’s challenge and threat to the U.S. dollar’s dominant position.”

Source: Xinhua, December 23, 2011
http://news.xinhuanet.com/world/2011-12/23/c_122470547.htm

Zhang Jianguo, China’s Vice Minister of Human Resources and Social Security, spoke at the 14th Expo for Chinese Overseas Experts, which was held in Guangzhou. He indicated that over the next 10 years, China plans to bring in an average of 50 to 100 experts per year for a total of 500 to 1,000 foreign experts. The priority is to bring in strategic scientists, leading technology experts, and international innovative teams that can make breakthroughs in critical technologies, develop high tech and emerging industries, and bring about new disciplines in science.

Source: Xinhua, December 20, 2011
http://news.xinhuanet.com/2011-12/20/c_111259701.htm