Geo-Strategic Trend - 225. page

Recently, the China Center for International Economic Exchanges held its 28th Monthly Economic Talk. At the event, Xie Yajing, the Chinese Commercial Counselor for Western Asian and African Affairs, summarized the achievements in China-Africa economic cooperation in the following areas:

1) The trade between China and Africa showed an annual growth of 30 percent. In 2011, it reached US$126.9 billion, which is ten times the amount it was in 2000. In the first half of 2011, total trade reached US$79 billion. The figure for the full year is expected to reach a new record high. China is Africa’s largest economic partner. Meanwhile, Africa’s trade with China accounts for 10 percent of its total foreign trade.

2) By the end of 2010, China’s direct investment in Africa surpassed US$10 billion. In 2010 alone, China’s non-financial investment was US$1 billion, 5 times the size it was in the year 2000. There are 2,000 Chinese companies investing in Africa covering areas such as agriculture, telecommunications, energy, manufacturing, and food services.

3) Over the past 50 years, China has constantly provided aid to Africa. The total of over 800 projects includes railway construction – 2,000 kilometers; road construction – 3,000 kilometers, training – 3,000 people; and medical aid – 17,000 visits to medical personnel.

4) Cooperation in building infrastructure is the key trading component between China and Africa. China has provided non-interest bearing loans, loans on favorable terms, commercial loans, and so on. Chinese companies have invested in projects in Africa from electricity, telecommunications, and transportation, to energy. Its total investment in Infrastructure accounts for 2/3 of the total infrastructure spending in Africa.

Source: China Internet Information Center, October 21, 2011
http://www.china.com.cn/economic/txt/2011-10/21/content_23688099.htm

On October 20, 2011, Liu Yunshan, a Politburo member and Chief of the Chinese Communist Party’s Propaganda Department, met with a group of officials who are in charge of press affairs in developing countries. The group included 23 senior news and press officials and staff members from 12 developing countries. The Party offered a training session in which all of them participated. Wang Chen, the Minister of the State Council Information Office, also attended the meeting.

Liu said, “China and the developing countries enjoy a profound traditional friendship. To strengthen China’s friendly cooperation with developing countries is not only an important cornerstone of China’s foreign policy, but also our long-term and firm strategic choice. In recent years, on the basis of traditional friendship, the relationships between developing countries have achieved new progress. Cooperation and exchanges in the field of news media have been strengthened and mutual understanding and affection have improved.”

Source: Xinhua, October 20, 2011
http://news.xinhuanet.com/politics/2011-10/20/c_111111264.htm

On October 20, 2011, Xinhua published a commentary on the death of Gaddafi. It stated that Gaddafi’s death does not mean the game in Libya is over. “People realize that Gaddafi’s death does not mean that everything is now all right in Libya. Gaddafi’s surviving forces will still make trouble. Conflicts between the eastern and western regions, large and small tribes, and various political forces may still surface. A flood of weapons among the people, foreign interference, as well as extremist and terrorist forces fishing in troubled waters are further elements that may contribute to the volatility of the situation in Libya. For the foreseeable future, Libya, in the post-Gaddafi era, will not be at peace. In fact, the death of Gaddafi really raises the curtain for the maneuvers of the various Libyans who are vying for power.”

Source: Xinhua, October 20, 2011
http://news.xinhuanet.com/2011-10/20/c_122181840.htm

In an interview with People’s Daily, Colonel Luo Ruan, deputy secretary of the China Association for Military Sciences, commented on Japan’s recent statement that Japan is increasing its cooperation with the Philippines and other South East Asian countries on South Sea issues. Luo said that the following three factors enter into Japan’s involvement in the South Sea: 1). Economic interests. The rich oil in the South Sea can boost Japan’s energy resources, which is what Japan dreams about. 2). Strategic geographic interests. The South Sea is an important strategic location connecting the Indian and Pacific Oceans. Japan is heavily dependent on the South Sea for the transportation of both its imports and exports. Japan believes that if China controls the South Sea route, Japan’s economic development will be under China’s control. 3). Strategic security interests. Japan hopes to utilize the South Sea conflict to reduce the pressure it faces in the East Sea and the Senkaku islands.

Luo said that for Japan, as a Northeast Asian country, to actively get into the South Sea conflict is an act of reckless expansion. It violates Japan’s Peace Constitution, and also violates the international laws that restrict its expansion.

Source: People’s Daily, October 13, 2011
http://military.people.com.cn/GB/15881711.html

Xinhua reported that a China-built 3×330MW power plant was completed on October 12, 2011, in Indramayu, a city in the West Java province of Indonesia. Three companies, China National Electric Engineering Co., Ltd. (CNEEC), China National Machinery Industry Group (CNMIG), and Indonesian PENTA, formed the consortium that contracted to complete the project. 

Huanqiu published a special commentary on the new coalition of Vietnam, India, the Philippines, and Japan. The article stated that the driving force behind the coalition came from Vietnam and the Philippines and that regardless of what China does, they will not back down. The U.S. and Japan are really reluctant to come to a wide-reaching impasse with China. India, ambitious as it may be, is not mature; it has low productivity and tends to act on impulse. “Based on the foregoing, to ‘shelve the dispute and jointly develop,’ we must dare to dispute and to develop. … Only if China draws an ‘insurmountable red line’ on key principles and demonstrates the power and resolve to defend that red line will other countries weigh the pros and cons and become prudent. Then the coalition will vanish."

Source: Huanqiu, reprinted by Xinhua, October 7, 2011
http://news.xinhuanet.com/herald/2011-10/07/c_131176474.htm

Radio Free Asia reported that, in recent weeks, under pressure from Beijing, Vietnamese authorities have been escalating their intimidation and abuse of the local Falun Gong community, further intensifying a policy change that began last year. Two Falun Gong practitioners are scheduled to stand trial next week for broadcasting uncensored news to China. Since the end of August, on two occasions, the police have abducted or thugs have assaulted local Falun Gong practitioners while they were practicing their exercises in a park. 

According to People’s Liberation Army Daily, at the 10th strategic dialogue between the Chinese and French defense ministries in Paris on September 28 and 29, both sides “conducted frank, friendly and fruitful exchanges on defense policies, military buildup, the regional security situation, and issues of international focus. They also had an in-depth exchange of views on further developing bilateral military relations.” “Both sides agreed that the Sino-French defense ministry dialogue mechanism will help deepen strategic mutual trust, expand areas of cooperation, and play a positive role for the two countries in building a new, mature and stable, comprehensive strategic partnership based on mutual trust and mutual benefit, while having a global perspective.”

Source: Xinhua, October 1, 2011
http://www.chinamil.com.cn/jfjbmap/content/2011-10/01/content_68269.htm