Geo-Strategic Trend - 229. page

During his visit in Poland, Chinese Foreign Minister Yang Jiechi told the media that China pays close attention to the sovereign debt crisis in Europe. China supports the measures that the European Union and the International Monetary Fund have taken to stabilize the situation. “China continues to have confidence in the Euro zone and the Euro. In recent years, China has increased its holdings of Euro bonds.” Yang said that China will continue to support Europe and the Euro.

Yang also hoped that “the United States adopt a responsible monetary policy,” and that “the U.S. implement practical measures to insure the safety of other countries’ assets in the U.S.”

Source: China News Service, August 5, 2011
http://www.chinanews.com/gn/2011/08-05/3236891.shtml

Xinhua published an article by a scholar from Xiamen University, stating that China should not promise to give up the use of force in the South China Sea conflict. The article says, “The essence of the Philippines and Vietnam asking to sign a binding document with China through ASEAN on peaceful actions on the South China Sea issue is that they are attempting to force China to acknowledge their occupation of the South China Sea islands … and to nullify China’s ability to use armed force.” The article claims, “For a long time, China adopted a friendly policy toward its neighbors so as to win time for its economic development. However, in the South China Sea conflict, there is no win-win outcome. China must be prepared for military action. China is the party whose sovereign rights are violated. If China unilaterally promises to solve the conflict only through peaceful means, it will … allow the de facto occupation of the South China Sea islands by the Philippines and Vietnam. The Philippines and Vietnam will not need to worry about being attacked by armed force. Considering the arrogant attitude of the Philippines and Vietnam, the possibility of regaining the occupied islands in the South China Sea through peaceful means is quite minimal.”

Source: Xinhua, August 3, 2011
http://news.xinhuanet.com/mil/2011-08/03/c_121762183.htm

Xinhua published a commentary blasting Japan’s newly published defense white paper. The article says, “The 2011 defense white paper that the Japanese government released … extensively describes China’s military force in large volumes and even fans the flames to stir up a tense atmosphere. The Japanese action severely damages Sino-Japanese relations.” “This year’s defense white paper not only makes irresponsible remarks about China’s normal development of its national defense but also incites dissension and transmits aggressive and invasive intentions in the text.” “Additionally, what’s ‘new’ in the white paper is the claim that China is starting to show a ‘forceful manner,’ while Japan is starting to display a posture of ‘caring for’ its neighbors.”

The article further states that there are two reasons for Japan to make such comments in the white paper. “First, Japan has been constrained by a cold war mentality for a long time; trapped in the Japan-U.S. ally’s mythology; and embedded in a milieu of ‘China threat’ and ‘containing China.’ Second, Japan has a strong invasive desire to get rid of the restrictions on its defense policy that its peace constitution imposed after the war (World War II).”

Source: Xinhua, August 4, 2011
http://news.xinhuanet.com/mil/2011-08/04/c_121809765.htm

Xinhua recently reported that construction started on July 20, 2011, on the Zambian Kafue Gorge Lower Hydro-power Station. The China Water & Electric Corporation (CWE), the China-Africa Development Fund, and Zambia Electricity Supply Corporation Limited (ZESCO) funded the project. The President of Zambia attended the opening ceremony and welcomed the Chinese investment. The capacity of the power plant is 750,000 kw. The construction project is expected to take 6 years to complete. Once the plant starts producing, CWE will remain as a primary shareholder .

Source: Xinhua, July 21, 2011
http://news.xinhuanet.com/2011-07/21/c_121697509.htm

Xinhua recently published an article criticizing Western media for making up stories about an Iran-North Korea joint effort to build long range nuclear missiles. The article referred to the London based Telegraph, which on July 21, 2011, reported on a study done by the British think tank, the International Institute for Strategic Studies (IISS). Xinhua said that IISS suggested that the two aforementioned nations are jointly developing nuclear missiles. Also mentioned in the Xinhua report were a report from the Israeli Jerusalem Post and suggestions made by U.S. think tank Rand. Reuters also reported on some “guess work” by the South Korean Defense Minister on the same effort. The Xinhua article downplayed the situation and suggested that it will be too hard for these two nations to come up with a usable intercontinental missile platform any time soon, although it is possible they may have “some kind of cooperation."

Sources:
Xinhua, July 29, 2011
http://news.xinhuanet.com/mil/2011-07/29/c_121739281.htm
Telegraph, July 21, 2011
http://www.telegraph.co.uk/news/worldnews/asia/northkorea/8653171/North-Korea-and-Iran-increase-collaboration-on-nuclear-missile-report-claims.html

Xinhua reported on July 30, 2011, that the true purpose for the U.S. to relocate its military base in South Korea is to contain China and that the U.S. has bullied South Korea into paying the relocation fee. Xinhua quoted a South Korea magazine New Southeast Asia that disclosed the story about the U.S. project of relocating its military base. The report said, “In recent years, the U.S. and South Korea have held frequent and prominent joint military exercises, touting their ‘solid’ ally relationship. However, the reality is quite different from the appearance. This pair of allies has negotiated for many years regarding (who will pay) the relocation expenses for the U.S. military in South Korea. The U.S. is arrogant, bullying, and sneaky, whereas South Korea can only swallow the bitterness and make concessions.”

Regarding the purpose for the U.S. military base to move to Pyongtaek, the article said, “As a matter of fact, the U.S. military has an ulterior motive for the move. China is rising, which makes the U.S. nervous. Therefore, the U.S. wants to build the biggest overseas military base in Pyongtaek in order to contain China. Building a Pyongtaek military base comes completely out of its global strategy; it is not just to improve the working conditions for the U.S. military so as to protect South Korea from (an attack by) North Korea.”

Source: Xinhua, July 30, 2011
http://news.xinhuanet.com/world/2011-07/30/c_121742551.htm

On July 27, 2011, Xinhua republished an article from China Radio International that accused the Philippines and Vietnam of taking action at the recent 44th ASEAN foreign ministers’ meeting in Bali, Indonesia to try to unite the ASEAN countries to form a “united front” against China on the South Sea conflict. The article quoted [Chinese] experts on international affairs who stated that uniting the ASEAN countries to force China to back off on the South Sea issue is an unrealistic proposition. Their purpose is to turn the South Sea conflict into an international “free lunch” so as to benefit both politically and economically at the expense of China’s interest.

The article also named India and Japan for getting into the conflict even though they have nothing to do with the South Sea. Finally, the article pointed out that the U.S. interfered in the conflict at a low cost to itself. [Chinese] experts believe that the U.S. is merely trying to stir up the waters. … The South Sea is only a low cost bargaining chip used to contain China. … “The South Sea is the weakest point in China-ASEAN relations.” The U.S. utilized the weak point to weaken China-ASEAN relations and has now “achieved its goal.”

Source: Xinhua,July 27, 2011
http://news.xinhuanet.com/mil/2011-07/27/c_121726145.htm

On July 20, 2011, Nanfang Daily reported on comments that Zhao Kejin, an associate professor at Tsinghua University, made regarding the South China Sea issue. Zhao argued that China should make a strategic commitment to defend the South China Sea. Zhao explained Deng Xiaoping’s strategic vision established in the 1980s: "Sovereignty rests with China; set aside disputes; and engage in joint development.” Zhao stated, “’Sovereignty rests with China’ is the principle and premise; ‘setting aside disputes’ is a tactic and a method; and ‘joint development’ is the goal and the direction.”

As other countries test the waters in the South China Sea, “China’s strategic communities are divided. Some people think we should exercise restraint and continue to buy time for strategic opportunities for China’s modernization. Others hold that China should take a tough stance and do not even rule out the possibility of using force. In fact, neither of these two views grasps the fundamental issue of the South China Sea. The ultimate South China Sea dispute is whether the parties deny the consensus that ‘regardless of any disputes or whether we engage in joint development, sovereignty rests with China.’” For those who attempt to challenge China’s sovereignty over the South China Sea, “regardless of which party it is, China should take a clear stance and should not rule out any options, including the use of force and war to defend its sovereignty.”

Source: Nanfang Daily, July 20, 2011
http://nf.nfdaily.cn/nfrb/content/2011-07/20/content_26925567.htm