Geo-Strategic Trend - 232. page

In an interview with the official Outlook Weekly magazine, Jiang Yong, a scholar with the China Institute of Contemporary International Relations, said that the international financial reform has not given China more of a real voice. Since April 2010, China’s voting right in the World Bank has risen from 2.77% to 4.42%, second only to the U.S. and Japan. Its voting power in the IMF jumped to 3rd place, after the U.S. and Japan. However, “After the reforms, the U.S. still sits in the top position at the World Bank and it retains a one-vote veto with its shares at the IMF. Although the EU countries ‘gave up’ some shares, they still retain a veto power. The fact that the top decisions on the world economy and financial system fall into the hands of Western developed countries hasn’t change,” said Jiang. He believes that if others control a country financially, the impact will be felt not only in financial security, but also in economic and national safety.

Source: Outlook Weekly, May 23, 2011
http://www.lwgcw.com/NewsShow.aspx?newsId=20819

From May 22 to May 24, 2011, senior official representatives from China and Arab countries attended the Eighth Sino-Arab Cooperation Forum. Assistant Foreign Minister Saif Muqqadam al Buainain, the Chairman of the Arab side of the meeting, “highly commended” all elements of the Arab-Chinese partnership. He said, “The Forum has become a milestone in the advancement of Arab-Chinese relations, as it provides an appropriate framework and designs effective mechanisms for dialogue and collective action, based on a solid foundation of equality and mutual benefits and interests.” 

A Huanqiu opinion piece suggested that ex-chief of IMF Strauss-Kahn’s replacement should come from China as its voting power in the IMF is increasing rapidly. “China’s position in the IMF surpasses European countries, having risen to 6.394 percent; it ranks third, only narrowly behind Japan by 0.07 percent. … The increase in China’s position means China can have a greater voice in policy suggestions, and will have more rights and responsibilities to send senior officers to the IMF. … Recently, many people have criticized the IMF for being too slow to react to the financial crisis and the near collapse of the banking system, and for paying too little attention to the financial development of developing countries. Adding more Chinese elements to the senior positions will be an excellent complement to the IMF’s insufficiencies.” The article concluded that “China does not lack capable personnel for the next IMF chief position. If the current 24 voting executive members understand this and send a Chinese to head the agency, it will show tremendous respect for the rising China.”

Source: Huanqiu, May 18, 2011
http://opinion.huanqiu.com/roll/2011-05/1699867.html

On May 19, 2011, the North American regional headquarter of the Xinhua News Agency celebrated the launch of its new office in Manhattan’s Times Square, in a bid to step onto the stage of world-class media. Zhou Xisheng, Xinhua’s vice president, said, “The launch of our North American regional headquarters will play an active role in increasing Xinhua’s abilities in international news transmission and enhance the influence of its international reports.” Currently, Xinhua employs some 16,000 people, with more than 30 domestic bureaus and over 140 overseas. It has seven bureaus in the United States and three in Canada. 

On May 18, 2011, Xinhua reported that Chinese Premier Wen Jiabao assured Yousuf Raza Gilani, the visiting Prime Minister of Pakistan, of China’s support. Wen affirmed that “Pakistan has made huge sacrifices and an important contribution to the international fight against terrorism; that its independence, sovereignty, and territorial integrity must be respected; and that the international community should understand and support Pakistan’s efforts to maintain domestic stability and to realize economic and social development.” Wen stated that China would like to be an “all-weather strategic partner” and will do its best to help the Pakistani government and people get through their difficulties. 

On May 10, 2011, Jiang Yu, the spokesperson for the Chinese Ministry of Foreign Affairs, commented on the Vietnamese election of a representative from the Spratly Islands to the National Assembly and the local People’s Council. Jiang said that China holds “indisputable” sovereignty over the Spratly Islands and any single-sided action another country takes on the Islands is a violation of China’s sovereignty. She said the Vietnamese election was illegal and invalid, and did not conform to the Declaration of the Code of Conduct on the South China Sea.

Source: Xinhua, May 10, 2011
http://news.xinhuanet.com/world/2011-05/10/c_121400466.htm

Voice of America (VOA) recently reported that China National Petroleum Corporation (CNPC) and its partners made a successful bid for part of the development work in the Halfaya Oil Field in southeast Iraq. Halfaya has a proven reserve of 4.1 billion barrels, with a current daily output of 3,100 barrels. The CNPC-led group won the bid for the 20-year development rights of Halfaya last year. The plan is to increase the daily production to 70,000 barrels by the end of this year. David Fridley from the U.S. Lawrence Berkeley National Laboratory suggested that the goal will be hard to achieve. Even if the goal is realized, the return on investment per barrel is only US$1.4. Many international oil companies gave up on the original bid due to the extremely low profit. The belief is that, even given the low profitability, China was still determined to drill in Halfaya just to secure an international source of oil. Half of China’s oil is imported. CNPC holds 37.5% of Halfaya shares.

Source: Voice of America, May 10, 2011
http://www.voanews.com/chinese/news/20110510-CNPC-121586299.html

Global Times published a commentary from a Chinese professor of international law criticizing U.S. infringement of Pakistan’s sovereignty in the raid on bin Laden. He argues that the cross-border military action is a violation of Pakistan’s territorial sovereignty and constitutes an invasion. “The cross-border military action cannot be regarded as a legal means to exercise the national right of self-defense.” “International law does not encourage the preemptive nature of such a cross-border military action.”

Source: Global Times, May 11, 2011
http://world.huanqiu.com/hot/2011-05/1685628.html